
02 Dec Global Compensation: A Shifting Landscape of Opportunities and Challenges
The Global Compensation Report from Deel, a human resources (HR) and payroll platform that helps companies manage international workforces, reveals a complex tapestry of compensation trends across the globe, with significant implications for both employers and employees. The data, drawn from over 300,000 worker contracts across 150 countries, provides unprecedented insight into how companies are navigating compensation in an increasingly borderless work environment.
The North American advantage
The United States, Canada, and Great Britain consistently lead in compensation across all job types, with particularly strong showings in engineering and data roles. In these fields, median compensation in the US has not only recovered from a slight dip last year but has surpassed levels from 18 months ago, reaching $120,000 annually. This trend is especially pronounced in engineering and data roles, where US compensation has shown remarkable resilience and growth.
The gender gap: progress and persistent challenges
While the gender pay gap remains a significant concern globally, there are signs of improvement in specific regions and roles. In India and Great Britain, the gap for technical roles is notably narrower compared to other countries. The US has achieved gender pay parity in marketing and sales roles, marking a significant milestone. Female representation in product and design roles is generally increasing across most markets, suggesting positive momentum in workplace diversity.
Regional compensation dynamics
The report reveals fascinating regional variations in how inflation impacts real earnings. Workers in Sweden, Spain, Italy, and the UK are experiencing the highest inflation-adjusted salary increases. However, employees in countries with elevated inflation rates—such as Poland, Colombia, and Brazil—are seeing net decreases in real earnings. Turkey presents a particularly striking case, with 46% salary growth being effectively negated by 50% inflation.
The rise of equity compensation
Technical roles, particularly in software engineering, are seeing substantial equity components in their compensation packages. According to data from Carta, software engineers typically receive equity grants worth 75-150% of their base salary, vesting over a four-year period. This trend is most pronounced in the US, Germany, and Argentina, where equity compensation plays a crucial role in total remuneration packages.
Employment structure variations
The report highlights significant differences in employment structures across regions. Full-time equivalent (FTE) positions are most common in Germany, the UK, and Canada, while independent contracting dominates in Latin American markets. This variation reflects different labor market dynamics and regulatory environments across regions.
Looking forward: key implications
For global mobility professionals and HR leaders, these findings underscore the importance of developing nuanced, market-specific compensation strategies. The data suggests that successful global compensation programs must account for not just base salary differences but also consider equity components, inflation impacts, and local employment preferences.
The trend toward remote work has introduced new complexities in compensation strategy, as companies must balance local market rates with global talent competition. This is particularly evident in technical roles, where the competition for talent has driven up compensation across all markets, though with varying intensities.
Furthermore, the data indicates that companies are increasingly using total rewards packages—combining base salary, equity, and benefits—to attract and retain talent. This approach is particularly effective in markets where direct compensation might not be globally competitive, but where other elements can create compelling total packages.
For organizations building global teams, the report suggests that success lies in understanding and leveraging these regional differences rather than applying one-size-fits-all approaches. Companies that can craft market-specific compensation strategies while maintaining internal equity are best positioned to attract and retain global talent.
As we move further into 2025, the report’s findings suggest that organizations must remain agile in their compensation strategies, ready to adapt to both local market conditions and global trends. The increasing importance of equity compensation, particularly in technical roles, indicates a continued evolution toward more sophisticated and varied compensation structures.
Technology’s Role in Shaping Compensation Strategies
Finally, the role of technology in shaping global compensation cannot be overstated. Advanced tools for managing payroll, equity, and benefits are enabling companies to implement sophisticated compensation packages with precision. These technologies are helping organizations navigate regulatory complexities, streamline cross-border payroll processes, and offer tailored benefits, ensuring competitive positioning in a dynamic global landscape. For companies, adopting these tools is not just a matter of convenience but a strategic necessity in the quest to attract and retain the world’s top talent.