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> do you currently see pay adjustments based on housing costs Yes, it's commonly referred to as "cost of living adjustment." The rational basis is that the em
by tspike 6y ago
> do you currently see pay adjustments based on housing costs
Yes, it's commonly referred to as "cost of living adjustment."
The rational basis is that the employer sees strategic value in having a physical presence in a given locale, and are willing to pay a premium to have employees actually located there.
Note that I've been working remotely full-time for years, and never plan to go back. I am, however, under no illusions that my salary is a permanent thing.
- bachmeier 6y ago> Yes, it's commonly referred to as "cost of living adjustment." I think you missed the point I was making. Have you seen two employees living in the same city, with one paid more because he decided to buy a more expensive house? I'm aware that there are regional differences, but they can be explained by factors like different productivity levels. This discussion is different - it's about the same employee living in two different locations.
- SamReidHughes 6y agoThe employees are in a different negotiating position. Google pays them as little as they can get away with.
- msteffen 6y agoIf living in a nicer house caused engineers to have more job opportunities at higher salaries, then Google probably would pay you more for living in a nicer house.
- muspimerol 6y agoThat's clearly an absurd line of reasoning, employees should not be compensated due to how they choose to spend their income. Should employees who eat caviar every day get a raise? As another comment mentioned, employees are paid based on a negotiation with the employer. The question isn't whether it's "fair" for someone in SF to earn more than someone working the same job in Delhi. The question is whether someone in Delhi is similarly qualified and willing to do the job for a lower salary.