Every Role has a minimum and maximum base compensation that is reviewed and determined from market rates as published by PayScale. We may apply an adjustment factor to the market rates if we don't agree with how the market values a Role, or use a comparative position as there might not be enough market data to statistically support a direct match for the Role that we want data for.
We use two geographic reference points within PayScale to gather our compensation data from;
Toronto, Ontario, Canada
and Lenexa, Kansas, USA
If you live in Canada, regardless of where in Canada, we use the Toronto market data and Canadian dollars. And if you live outside of Canada we use the Lenexa data and American dollars.
And within these 2 locations we compare ourselves to firms within the software as a service industry with 1,000 employees. We don't have 1,000 employees but firms of our size tend to pay less than they do and we want to make sure that we are competitive with them.
One further clarification is that we don't increase a person's compensation from one year to the next based upon a cost of living allowance or by amount of time from the last date a person's compensation was increased. We use market data and the results of our Scorecard Reviews to determine what base compensation increases need to be made and when.
If your role includes variable compensation for achieving specific and quantifiable goals (for example achieving revenue dollars or growth rates) we determine the variable compensation paid at the end of the current month by dividing the actual result for the preceding month by the goal amount and multiplying that by the Variable Target for the role divided by 12.
For greater certainty:
(Actual Result / Goal Amount) X (Role Variable Target / 12)