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Rainforest QA co-founder here; We actually now pay percentile of local equivalent, which is fairer if you want to compare apples-to-apples when looking for work

by ukd1 9y ago

Rainforest QA co-founder here; We actually now pay percentile of local equivalent, which is fairer if you want to compare apples-to-apples when looking for work without moving. We found that places like LA, with our previous structure, we just couldn't hire - LA actually has a better $ / living cost ratio for developers than SF! Meanwhile in other places, we'd be 95-100% percentile. Anyway; compensation is really hard to get right and keep everyone happy, you do your best, but haters-gonna-hate. p.s. also we're not remote only - we have some great SF engineers - but 90% of our eng is remote; we just want the best people regardless of location :)

phonon 9y ago
> -100% percentile not likely :-)
- ukd1 9y ago
  haha, wasn't supposed to be 100% accurate ;), so maybe, but in a small enough market I buy this.
itake 9y ago
I think everyone's financial situation is different. I agree with you that if you try to cater compensation by a hire's lifestyle choices, then it does get really hard to keep everyone happy. IMHO, living in SF is a choice, especially at a remote company. Just like buying a Tesla or choosing to live in your car instead of renting an apartment is also a choice. I don't think companies should pay one employee less because they choose to have a cheaper lifestyle than the employees that buy Teslas or live in San Francisco.
- ukd1 9y ago
  I think employees should be paid fairly (which works both ways) based on where they live; if we can pay you above the local average for your role and you don't want to move, then we're an attractive offer.
  - itake 9y ago
    JW, but how do you think about taxes? Would an American living in Denmark earn more than a Danish living in Denmark, because the American has much higher tax liability? Or maybe the American doesn't report the income to Denmark so has very low taxes compared to a danish or American-based co-workers since they qualify for FEIE? Does the married American with the marriage tax breaks get paid more or less than a single American?
    - ukd1 9y ago
      This is why paying a percentile of local rates makes the most sense, imho.

by ukd1 9y ago

phonon 9y ago

> -100% percentile not likely :-)

ukd1 9y ago
haha, wasn't supposed to be 100% accurate ;), so maybe, but in a small enough market I buy this.

itake 9y ago

I think everyone's financial situation is different. I agree with you that if you try to cater compensation by a hire's lifestyle choices, then it does get really hard to keep everyone happy. IMHO, living in SF is a choice, especially at a remote company. Just like buying a Tesla or choosing to live in your car instead of renting an apartment is also a choice. I don't think companies should pay one employee less because they choose to have a cheaper lifestyle than the employees that buy Teslas or live in San Francisco.

ukd1 9y ago
I think employees should be paid fairly (which works both ways) based on where they live; if we can pay you above the local average for your role and you don't want to move, then we're an attractive offer.
- itake 9y ago
  JW, but how do you think about taxes? Would an American living in Denmark earn more than a Danish living in Denmark, because the American has much higher tax liability? Or maybe the American doesn't report the income to Denmark so has very low taxes compared to a danish or American-based co-workers since they qualify for FEIE? Does the married American with the marriage tax breaks get paid more or less than a single American?
  - ukd1 9y ago
    This is why paying a percentile of local rates makes the most sense, imho.