I think people overestimate the degree of salary differential between tech employees in the same nation but different offices/working remotely/etc. There are strong process/internal fairness/social reasons to not adjust as aggressively as a cost of living calculator suggests.
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An ambient belief I’ve had for a while is that tech will likely standardize on a salary band for “costliest cities in the world” and another band for “everyone else.” I think many observers will be surprised where EE ends up, and surprised by how close it ends to top anchor.
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This implies, by the way, that one of the economic implications of an explosion of remote work adoption is that “old economy” firms employing engineers in e.g. Chicago or St. Louis are going to start finding themselves in shootouts with AppAmaGooBookSoft or startups.
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Note that if your engineering salary ladder tops out at $80k you will not necessarily find “Umm our tech lead just got a counteroffer from Google” to be a happy experience.
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“How do you feel about that?” I’m a capitalist. If a firm doesn’t metabolize engineering brainsweat as efficiently as the best software firms in world I recommend changing that, opening the hiring window, building a better career ladder than competitors have, or doing without.
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Replying to @patio11
I worked for Google London for two years, then moved to the Bay. *massive* salary increase.
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Replying to @ciphergoth @patio11
@danluu proposes the theory that this is an artifact of it being difficult to immigrate to the US, whereas someone in the US but outside of CA has a much more credible BATNA available (interview at any other well-paying US tech company). Ref: http://danluu.com/bimodal-compensation/#appendix-b-why-are-programmers-well-paid …3 replies 0 retweets 5 likes -
I'm not sure that's correct, but I'd be surprised if it's a cost of living issue. In general, high CoL cities outside of the U.S. pay programmers poorly compared to working at a big tech company in, say, Pittsburgh or Chicago (with some exceptions for certain finance jobs).
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Replying to @danluu @rmushkatblat and
For what Patrick proposes is true, we'll places like London and Hong Kong match SF and NYC in compensation when they don't even currently match the compensation of... Pittsburgh. My question there is, what change will make CoL the high order bit?
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My general thought on this is firm culture questions within companies, particularly in new generations of tech companies where distributed workforces were parts of the culture before e.g. international market expansion was on the agenda.
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It's a Schelling-points-all-the-way-down sort of thing, but if your model of the world is HQ and some satellite offices, then HQ doesn't see paying Londoners like Londoners is an obvious affront to justice. If you're all on Slack together since day 1, though, that's harder sell.
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And if you play the solve-for-the-equilibrium game, companies which continue with the home/satellite payscales strategy eventually face a) internal pressure against this policy, particularly at HQ, where it will play *extremely* badly to tech employee bases and b) competition.
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