[Nasrudith]

Is the location or nationality relevant to the job location? Maybe it has some different overhead, regulations, better access to customers, internet access/lower latency which could affect the actual value of the employee depending on location. when it matters then it may make sense to care about it enough to pay a premium for high CoL if it is linked to something you want or a lower rate if other features make them less desirable.

If not then it is a cargo-culted antipattern because of the deadly words "That is always the way it was done." You would fundamentally wind up squandering money and talent by overpaying high CoL without the benefits of the location and losing comparable talents from a low CoL by showing them you don't value them.