What is Cost-of-living adjustment (COLA)?

A Cost-of-living adjustment (COLA) is a company-wide compensation increase that corresponds to a rise in the cost of living.

Why should HR leaders care about COLA?

Though only 11% of U.S. employers integrate COLAs, HR leaders should still consider the regional cost of living when designing competitive compensation. An enticing salary that enables an employee to live a high-quality lifestyle can attract, help engage, and retain talent.

What can HR leaders do to implement COLA?

Though it may not be practical for HR leaders to implement an official annual COLA, HR leaders can take into account the local cost of living to develop desirable salaries.

How can implementing COLA improve company culture?

Developing wages based on the annual rise in the cost of living, as well as employees’ internal and external values, helps HR leaders to establish attractive salaries.

Compensation Archives | Page 3 of 3

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