Methodology
Olikit Scoring System
Olikit uses five proprietary scoring systems to help professionals evaluate and compare compensation, purchasing power, relocation feasibility, career opportunities, and net earning potential across global markets. Each score is calculated using transparent, data-driven methodologies.
Olikit Compensation Score
The Olikit Compensation Score measures how competitive a salary is within a given market, accounting for experience level, industry sector, and local market conditions. The score is normalized on a 0-100 scale, where higher values indicate stronger compensation relative to market benchmarks.
Calculation Factors
- Base Salary: Annual base cash compensation compared to national and industry averages.
- Experience Adjustment: Salary scaled by experience level relative to market expectations for that level.
- Industry Premium: Industry-specific compensation premiums or discounts applied based on sector.
- Market Percentile: Where the salary falls within the overall market distribution for the role.
The Compensation Score is most useful for evaluating job offers, negotiating salary increases, and understanding how your compensation compares to market benchmarks in your country and industry.
Olikit Purchasing Power Score
The Olikit Purchasing Power Score measures the real value of a salary after adjusting for local cost of living and price levels. This score helps professionals understand how far their earnings will go in different cities and countries. Scores are normalized on a 0-100 scale relative to the local market.
Calculation Factors
- Cost of Living Index: Overall cost of living for the city or region relative to a baseline (US = 100).
- Housing Costs: Rent or mortgage costs for comparable accommodation in the target location.
- Goods and Services: Prices for groceries, transportation, utilities, healthcare, and education.
- Purchasing Power Parity: World Bank PPP conversion factors to adjust for price level differences between countries.
- Discretionary Income: Remaining income after essential expenses, indicating financial flexibility.
The Purchasing Power Score is essential for comparing international job offers, evaluating relocation decisions, and understanding real financial outcomes across different markets.
Olikit Relocation Score
The Olikit Relocation Score evaluates how favourable a country or city is for professionals considering international relocation. It combines quantitative financial metrics with qualitative factors that affect the overall relocation experience. Scores are on a 0-100 scale.
Calculation Factors
- Immigration Accessibility: Visa availability, processing times, paths to permanent residency, and family inclusion policies.
- Tax Environment: Overall tax burden including income tax, social contributions, and wealth taxes.
- Healthcare Quality: Quality and accessibility of healthcare, whether public, private, or employer-provided.
- Employment Protections: Notice periods, parental leave policies, and worker rights.
- Cultural Adjustment: Language barriers, cultural differences, and community support for expatriates.
- Quality of Life: Safety, education, environmental quality, and leisure opportunities.
The Relocation Score helps professionals evaluate destinations holistically, balancing financial incentives with lifestyle and practical considerations.
Olikit Career Opportunity Score
The Olikit Career Opportunity Score assesses the strength of a market for professional growth, measuring job availability, career advancement potential, and ecosystem maturity. Scores range from 0-100.
Calculation Factors
- Job Market Size: Total number of relevant positions available in the market.
- Industry Diversity: Range of industries employing the profession, indicating market resilience.
- Salary Growth Potential: Historical and projected salary growth rates for the profession.
- Startup Ecosystem: Access to venture capital, startup density, and innovation activity.
- Remote Work Availability: Prevalence of remote and hybrid work arrangements in the market.
- Major Employer Presence: Concentration of leading companies in the relevant sector.
The Career Opportunity Score helps professionals identify markets with the strongest long-term career potential, beyond just current compensation levels.
Olikit Net Earning Power
Olikit Net Earning Power represents the after-tax, after-housing disposable income a professional can expect in a given market. This metric provides the most realistic view of financial outcomes by accounting for the three largest expenses affecting take-home pay: taxes, housing, and cost of living.
Calculation Factors
- Gross Salary: Annual base salary before any deductions.
- Tax Deductions: Income tax (federal/national, state/provincial) and mandatory social contributions.
- Healthcare Costs: Health insurance premiums or mandatory healthcare contributions.
- Housing Costs: Typical rent for a comparable residence in a desirable area of the city.
- Essential Living Costs: Utilities, groceries, transportation, and other essential monthly expenses.
- Savings Potential: Estimated monthly savings after all essential expenses and discretionary spending.
Net Earning Power is the most comprehensive metric for evaluating real financial outcomes. It is particularly valuable when comparing offers between countries with different tax systems, housing markets, and cost structures.
Data Sources and Updates
All Olikit scoring systems use data from the following sources:
- Government statistical agencies (US BLS, UK ONS, Australian ABS, Statistics Canada, etc.)
- Numbeo and OECD cost of living and purchasing power indices
- World Bank purchasing power parity data
- Industry compensation surveys and salary databases
- Government immigration and tax authority publications
Scores are reviewed and updated quarterly to reflect the latest available data. Methodology documentation is maintained alongside score updates and all significant changes are noted in our methodology changelog.
For questions about our scoring methodology, please contact our research team.