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Wages and the prices of many other things are determined by supply and demand. It's going to cost less to hire someone where demand is weaker. And wages HAVE
by stretchwithme 8y ago
Wages and the prices of many other things are determined by supply and demand. It's going to cost less to hire someone where demand is weaker.
And wages HAVE to be higher where its expensive to live in order get people to live there. And the logistical advantages of having someone down the hall are usually worth the extra expense.
- jkaplowitz 8y agoBut for remote workers, you're not hiring someone to be down the hall. You're hiring them for certain defined availability, and maybe a certain defined willingness and ability to travel within certain cost and frequency parameters. And yes, for their skillset.
- walshemj 8y agoNo your hiring them because they are cheaper and have less opportunities locally.
- jkaplowitz 8y agoOr you may be hiring them because you want their skillset but you don't have candidates like them locally, rather than to save costs. Or you may be an all-remote company. (Surprisingly, even that last group sometimes adjusts pay for CoL, like GitLab, but not always.)
- walshemj 8y agoWell I think that is likely to be true in less than one or two percent - you are being naïve about employers motives here sorry to say.
- jkaplowitz 8y agoYou're definitely right about most employers who hire remote - and they're going to get what they pay for, a race to the bottom in both labor cost and labor quality. I'm not being naive, I'm simply focusing on the minority of remote employers for which most of us on Hacker News might want to work - who frustratingly still often adjust pay by cost of living.
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- x0x0 8y agoRight, but if they cost the same as local, I'm hiring locally.
- jkaplowitz 8y agoIf your whole team is otherwise local, sure. If your team is dispersed across both US coasts, intermediate US states, and Europe - as mine was for much of last year - I see no reason why the company would especially prioritize paying the extra office costs for a worker who preferred remote in an acceptable location.
- dragonwriter 8y agoSure, it makes sense if value differs between local and remote to have pay differential there. That's different from location based differential in the remote pool.
- JustSomeNobody 8y agoDuring interviews do you ask the locals if they have any intentions of moving to a lower CoL city in the near future? If you do, do you start them at a lower rate?