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Does anyone have a good explanation why companies do this? Wouldn't it be more beneficial to continue the same paying structure because of the retention? My g

Does anyone have a good explanation why companies do this? Wouldn't it be more beneficial to continue the same paying structure because of the retention? My gut feel would be that if Facebook continued paying same rate even though people weren't in the bay area anymore that nobody would ever be able to compete and therefore the retention would be much longer.

deleted 6y ago
[deleted]
ciarannolan 6y ago
> Does anyone have a good explanation why companies do this? 1. To make more money 2. Because they can
ghaff 6y ago
At some point, having everyone in golden handcuffs isn't necessarily a wholly positive thing. If you're working for Facebook in a low-cost area at a (high-end) SV salary, you've got a huge incentive to just tough it out even if you hate your job. Companies adjust pay scales because they mostly can and I doubt there are a material number of large distributed companies that don't do so. If they pay competitive Bay Area salaries everywhere, then they're paying more than they need to in order to hire people elsewhere.
- tosers4 6y ago
  This. Tbh even recently we have had something similiar in our city about a companie moving there and the pay was ridiculously above the median, golden handcuffs was of of the topics of the discussion, specially by colleagues that were part of a consulting company already working for them before them moved in. It's not a nice feeling knowing that if you leave a job, there is no way you can get the same payment. One of the nice things about being a programmer is that I can leave my job whenever I need, as employment is abundant, but if there is no comparable paycheck, then that perk goes away. And that is a very nice perk that lots of people here take for granted.
edu 6y ago
Market. Say, now they're not limite to hire only people that want to live in the Bay Area but the whole world.
chosenbreed37 6y ago
> My gut feel would be that if Facebook continued paying same rate even though people weren't in the bay area anymore that nobody would ever be able to compete and therefore the retention would be much longer. Does Facebook have a problem retaining in the Bay Area or anywhere else for that matter?
- leothecool 6y ago
  The average FB employee stays 2.6 years, so.. maybe? If all they are doing is training an AI on some cartoon avatars, they'll be fine. I imagine it would hurt their VR attempts at VR and games, where AAA projects generally last more than 3 years.
yokaze 6y ago
Aside of the monetary benefits: Social cohesion. With a senior developer silicon valley payment, you would be payed roughly the equivalent of middle to upper management at large companies in other industrial countries. Likely several times the payment of doctors, teachers, etc... And you may guess how it is in other countries with even lower costs of living. Imagine the effect on society as a whole on that. And in several regions, those tech companies are not really welcome to open offices, because of those effects on the rest of society.

deleted 6y ago

[deleted]

ciarannolan 6y ago

> Does anyone have a good explanation why companies do this? 1. To make more money 2. Because they can

ghaff 6y ago

At some point, having everyone in golden handcuffs isn't necessarily a wholly positive thing. If you're working for Facebook in a low-cost area at a (high-end) SV salary, you've got a huge incentive to just tough it out even if you hate your job. Companies adjust pay scales because they mostly can and I doubt there are a material number of large distributed companies that don't do so. If they pay competitive Bay Area salaries everywhere, then they're paying more than they need to in order to hire people elsewhere.

tosers4 6y ago
This. Tbh even recently we have had something similiar in our city about a companie moving there and the pay was ridiculously above the median, golden handcuffs was of of the topics of the discussion, specially by colleagues that were part of a consulting company already working for them before them moved in. It's not a nice feeling knowing that if you leave a job, there is no way you can get the same payment. One of the nice things about being a programmer is that I can leave my job whenever I need, as employment is abundant, but if there is no comparable paycheck, then that perk goes away. And that is a very nice perk that lots of people here take for granted.

edu 6y ago

Market. Say, now they're not limite to hire only people that want to live in the Bay Area but the whole world.

chosenbreed37 6y ago

> My gut feel would be that if Facebook continued paying same rate even though people weren't in the bay area anymore that nobody would ever be able to compete and therefore the retention would be much longer. Does Facebook have a problem retaining in the Bay Area or anywhere else for that matter?

leothecool 6y ago
The average FB employee stays 2.6 years, so.. maybe? If all they are doing is training an AI on some cartoon avatars, they'll be fine. I imagine it would hurt their VR attempts at VR and games, where AAA projects generally last more than 3 years.

yokaze 6y ago

Aside of the monetary benefits: Social cohesion. With a senior developer silicon valley payment, you would be payed roughly the equivalent of middle to upper management at large companies in other industrial countries. Likely several times the payment of doctors, teachers, etc... And you may guess how it is in other countries with even lower costs of living. Imagine the effect on society as a whole on that. And in several regions, those tech companies are not really welcome to open offices, because of those effects on the rest of society.