What is the intent of the Cost of Living Calculator?
The tool helps humanize compensation conversations and provides context to employee perception of pay rates. Adecco can provide guidance to viable compensations strategies that help meet your business goals while still promoting employee well-being.
How do we calculate this data?
Based on governmental and publicly available data sources, we estimate the monthly cost of Housing, Childcare, Food, Gas, Health Insurance, and ‘Other Costs’ to determine the hourly wage needed to cover these basic expenses. Expenses are also adjusted based on location and family size of the household.
What is the difference between a cost of living and market wage?
Cost of living wage is the estimated amount needed to cover basic expenses based on the location and household size. Market wage is determined by the skill set, location, labor scarcity, and what the local competition is paying for similar jobs. Cost of living wage should be used in conjunction with market wages and market analysis before making any wage adjustments.
What if the estimated wage is lower or higher than a pay rate?
The estimated cost of living should be used as a reference point when determining compensation levels. The job skill set, labor scarcity, local competition, and other factors should all be taken into consideration when reviewing pay rates.
Where does the data come from?
Data is pulled from sources like the Bureau of Labor Statistics, Department of Housing and Urban Development, Consumer Expenditure Survey, and US Energy Information Administration.
How often is the data refreshed?
We pull the most recent data available. Some data sources are updated annually while others are updated monthly