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Overhead cost of providing a physical workspace is easily 50%+ of base compensation costs. Companies save a fortune by having employees work from home. "Geopa
by Charles808 6y ago
Overhead cost of providing a physical workspace is easily 50%+ of base compensation costs. Companies save a fortune by having employees work from home.
"Geopay" scales are exploitation. Employee X should be compensated in relation to the value they bring through their efforts, not at the minimum possible level that the employer can get away with.
- jjav 6y ago> Overhead cost of providing a physical workspace is easily 50%+ of base compensation costs. That estimate is high by about an order of magnitude. To get a sense of the cost ceiling per person, look at the least cost-effective way to rent a monthly desk which is to do it as an individual in a co-working space. Here's one price list for coworking space in Campbell (Silicon Valley) https://drive.google.com/file/d/1iljwYScQ4d5F4rUcQN-9XH0D8E2h71cn/view https://drive.google.com/file/d/1iljwYScQ4d5F4rUcQN-9XH0D8E2... An open office desk is $325/month, up to a dedicated cubicle for $725/month. So for a junior engineer at $150K salary, that's between 2.6% to 5.8% of their base comp in office space cost. Now, of course, a company renting tens of thousands of square feet at a time gets better rates due to scale, so the percentage is less than those examples.
- claudeganon 6y agoThe only way to counter that is through collective bargaining, which many people on this site seem to view as beneath them. “Geopay” really isn’t any different from how Google/Apple/etc colluded in the past to suppress developer wages.
- driverdan 6y agoAt low paying jobs sure but when you're talking about $100k+ tech employees it does not cost 50% of base compensation for the physical workspace.