7 ms·
It's a bit more complicated than "paid less for doing the same amount of work". Compensation isn't purely based on amount of work done, there are other market f
by KoftaBob 6y ago
It's a bit more complicated than "paid less for doing the same amount of work". Compensation isn't purely based on amount of work done, there are other market factors involved like supply of talent.
If a company suddenly allows working remotely full time, they've suddenly increased their supply of talent, as moving to another city will no longer be a roadblock when they consider Facebook.
At the same time, if more and more companies go with a remote friendly approach, the supply of job openings that applicants have access to will also increase.
Theoretically, this will lead to some sort of equilibrium where compensation is actually based more on the value/output of your work than other factors.
To make an analogy, an apartment building in SF serves the same purpose as an apartment building in Ohio, yet they charge vastly different rents. You're paying less in Ohio for something that provides the same utility (shelter), because of factors outside of the direct utility of the apartment.