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Talent is the lifeblood of tech companies. Ergo, tech companies set up where it is easier to recruit talent.

Consultant32452 7y ago
I agree with you, but I also find it to be confusing. These same companies, when they do open offices in "2nd tier" cities, they offer "2nd tier" salaries. If you go to Houston and offer something close to SF salary, you will be over-run with great talent. I feel like there's some social status or something that comes from paying the higher salaries in places like the valley that just aren't attainable by attracting talent in other cities.
- inetknght 7y ago
  > If you go to Houston and offer something close to SF salary, you will be over-run with great talent. I live in Houston and I concur. The company I work for has a lot of trouble finding talent that we need. That's not to say the talent doesn't exist here. It absolutely does. It's just that we can't afford Silicon Valley level compensation.
  - lonelappde 7y ago
    You can't afford something you need? How are you still in business?
- SpicyLemonZest 7y ago
  "Talent" includes other roles that aren't so fungible. If a VC-backed startup starts a major widget spinning project, they often want to poach a director of spinning widgets from a top company, and Houston won't necessarily have one.
  - lonelappde 7y ago
    That doesn't explain why companies DO hire in Houston but refuse to pay close to what they'd pay the same person if the person moved to Mountain View or SF. It's simple status garbage to sustain the illusion that people in SV are "better"
    - SpicyLemonZest 7y ago
      I mean, I dunno, I feel like you have to look at it from the other direction. A lot of companies agree that that the premium for SV engineers is "simple status garbage", and therefore they don't want to pay it in markets where they don't have to. It only makes sense to pay your developers in Houston the same as the ones in SF to the extent that you believe the higher paid engineers really are more skilled.

I agree with you, but I also find it to be confusing. These same companies, when they do open offices in "2nd tier" cities, they offer "2nd tier" salaries. If you go to Houston and offer something close to SF salary, you will be over-run with great talent. I feel like there's some social status or something that comes from paying the higher salaries in places like the valley that just aren't attainable by attracting talent in other cities.

inetknght 7y ago
> If you go to Houston and offer something close to SF salary, you will be over-run with great talent. I live in Houston and I concur. The company I work for has a lot of trouble finding talent that we need. That's not to say the talent doesn't exist here. It absolutely does. It's just that we can't afford Silicon Valley level compensation.
- lonelappde 7y ago
  You can't afford something you need? How are you still in business?
SpicyLemonZest 7y ago
"Talent" includes other roles that aren't so fungible. If a VC-backed startup starts a major widget spinning project, they often want to poach a director of spinning widgets from a top company, and Houston won't necessarily have one.
- lonelappde 7y ago
  That doesn't explain why companies DO hire in Houston but refuse to pay close to what they'd pay the same person if the person moved to Mountain View or SF. It's simple status garbage to sustain the illusion that people in SV are "better"
  - SpicyLemonZest 7y ago
    I mean, I dunno, I feel like you have to look at it from the other direction. A lot of companies agree that that the premium for SV engineers is "simple status garbage", and therefore they don't want to pay it in markets where they don't have to. It only makes sense to pay your developers in Houston the same as the ones in SF to the extent that you believe the higher paid engineers really are more skilled.