It boggles the mind that so many people didn’t know that employees are paid (at least in part) based on what the market will pay for a skill set in a given location. Often, there’s a disconnect between this and cost of living.
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For example, I’ve managed tech workers in engineering and business in London and they were always paid less than workers in SF or NYC, despite the very high cost of living in London.
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SF companies don’t pay more because SF has a high cost of living. SF companies pay more because it’s a highly competitive environment with strong talent that companies are willing to pay more for.
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Replying to @cjc @thijsniks
I get paid 80% of what I can earn in SF to work in Singapore / Hong Kong. Most strong talent are geographically mobile and compete on a global marketplace. You just have to pay me more to live in a feces-infested city where heroin needles are a common sight on sidewalks.
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Replying to @yuarecold @thijsniks
Perhaps true for certain folks. Harder for people with kids, aging family members, partners with jobs also tied to the same location.
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Replying to @cjc @thijsniks
true. but I think that also reflects the price premium employers have to pay to convince people to move to the bay area. if I got paid double what I earn now, I'd be more willing to move there; the price premium on tech comp in SF is a market-clearing price
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Have you ever tried to hire folks in SF? Any good candidate, in any role, will get multiple competing offers. It’s not about location. It’s about competition. Once there are more remote companies, great candidates will just have more competing offers.
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I agree that many great candidates will have more competing offers. That's a separate point to there being a general price premium on people having to move to Bay Area. Bay Area is missing out on some great talent that don't want to relocate to the region at current prices.
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Replying to @yuarecold @Jauny and
What's likely going to happen is that total comp for Bay Area people moving out will decrease (both for top talent and median talent), but total comp for non-Bay Area people will increase. In general, TC will normalize across geographic location and focus more on merit.
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For the TC I think I agree. TC will probably lower for SF (not lower than 80% of today), rest of world is incredibly increase (very close to what SF gets to). FAANG will barely move, because they can afford it and won't change much about remote. (Google already said that)
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I expect comp to be based for 90% on competition. For the same reason it already is much lower in Amsterdam or London compared to San Francisco. More firms will extend remote offers (increases pay), but number of candidates will increase more (decreases pay).
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