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Salary scales are based on equilibrium between several forces: 1) Value that employee brings to the company 2) Value that company brings to the employee (most
by balfirevic 8y ago
Salary scales are based on equilibrium between several forces:
1) Value that employee brings to the company
2) Value that company brings to the employee (mostly, but not exclusively, salary)
3) Alternatives available for both the company and employee
I don't see a good reason to expect this (admittedly simplified) model to change with remote work arrangement.
- austenallred 8y ago3) is pretty drastically different in a remote environment
- balfirevic 8y agoYes, of course. I wanted to emphasize that the underlying forces are the same even if the results end up different. That's why Bay Area companies don't usually offer Bay Area salaries for remote workers around the world. And also why Croatian companies don't hire remote workers in San Francisco :)
- goobynight 8y ago"Having to live in the bay area" could be seen as negative value that the company was formerly "providing". Is it equivalent to a 30% pay cut? Probably not. Is it worth at least 15k a year (post tax, so more like 20k minimum) at the absolute minimum? Yes.
- deathanatos 8y agoMedian US 1 bedroom rent: $1,209 / mo [1] Median SF 1 bedroom rent: $3,690 / mo [2] That's a difference of $29,772 / yr. Post-tax. [1]: https://www.businessinsider.com/rental-prices-are-soaring-around-the-us-2018-7 https://www.businessinsider.com/rental-prices-are-soaring-ar... [2]: https://sanfrancisco.cbslocal.com/2019/03/05/median-1-bedroom-rent-sf-3690-month-zumper/ https://sanfrancisco.cbslocal.com/2019/03/05/median-1-bedroo...