Cost of Living Increase Policy

In today's dynamic economic environment, it is essential for organizations to recognize the significance of maintaining the real income of our Distant Assistants (DA). One effective way to achieve this is by implementing a Cost of Living Increase (COLI) based on the specific country’s Consumer Price Index (CPI) every EVEN year, effective January where your DA resides. This policy is designed to ensure that DA's wages keep pace with the rising cost of living, enabling them to maintain their standard of living, support their families, and remain motivated and engaged in their work.

Policy Statement:

1. Purpose:

The purpose of this policy is to establish a framework for providing Distant Assistants (DA) with a Cost of Living Increase (COLI) based on a specific country’s Consumer Price Index (CPI) every even year, commencing in January where your DA resides. The primary objective is to maintain the real income of our employees, keeping their wages in line with the cost of essential goods and services.

2. Eligibility:

Eligibility for the COLI is subject to the completion of at least one year of continuous service by the Distant Assistant (DA). Recent hires less than 6 months are not included in this policy.

3. Calculation of COLI:

The COLI will be calculated each even year based on the annual change in the Consumer Price Index (CPI) for the relevant geographic area, as reported by the government or a reputable source. The CPI represents the average price change over time for a basket of goods and services typically consumed by households. The COLI will be a percentage increase applied to DA's current base salaries. Should the CPI fall below our benchmark of 5.26, we will keep the benchmark as the basis for COLI computation for the next eligible increase. 

4. Implementation:

The COLI increase will be effective each January for every EVEN year, ensuring that Distant Assistants start the year with an adjustment that reflects the changing economic conditions. This will be a standardized practice for all eligible employees.

5. Communication:

Bottleneck’s HR department will communicate the COLI increase to all DA’s at least 30 days in advance of the effective date. This will include the specific percentage increase and its impact on individual team member salaries. All inquiries and concerns regarding the COLI will be addressed by HR.

6. Performance and Feedback:

DAs will not be required to meet specific performance criteria to receive the COLI, as it is primarily aimed at maintaining the purchasing power of their salaries. However, feedback regarding the effectiveness of the COLI policy will be collected through regular surveys and team member reviews to ensure its fairness and relevance.

8. Review:

This policy will be reviewed prior to every even year to assess its effectiveness in maintaining the DAs purchasing power and to make adjustments based on changing economic conditions or organizational needs.

Implementing a Cost of Living Increase based on the Consumer Price Index is not just a matter of fairness, but also a crucial tool for retaining talented employees. It demonstrates an organization's commitment to its workforce's well-being and provides a tangible way to support team members in keeping up with the rising cost of living. This policy ultimately contributes to a motivated, loyal, and productive workforce, fostering a positive work environment and ensuring the long-term success of the organization.