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FAANG doesn't determine salaries based on cost of living, but cost of labor, which maps to your concept of "competition density". There is no rational reason f

FAANG doesn't determine salaries based on cost of living, but cost of labor, which maps to your concept of "competition density". There is no rational reason for Google to pay bay area salaries for Indiana employees - will they really say no if Google offers 300K instead of the 500K they would get in the bay area? Sure, the person could reject it to make a statement, but most people would gladly take a salary that would buy them a small castle. All FAANG needs to do is to beat local salaries by a significant margin to get well qualified employees - that would still make these people WAY cheaper than bay area employees.

NotSammyHagar 6y ago
the rational reason would be they want to hire those people. Hiring top talent is a very competitive thing. Your avg dev at a small company in a small town might or might not be as good as that person who made it in sf. If 100k people leave sf and a good number of them keep their high salaries (or almost) then guess what, those companies will hire people from the other companies that cut pay too much.
badpun 6y ago
> FAANG doesn't determine salaries based on cost of living, but cost of labor, which maps to your concept of "competition density". Yep, that's exactly what a Google recruiter told me - they try to pay at the upper end of the _local_ market.