4 ms·
Forcing salary adjustment for relocation after the employee works for you is totally different. There’s no “market wage” at that point - there’s no such thing a
by mlthoughts2018 6y ago
Forcing salary adjustment for relocation after the employee works for you is totally different. There’s no “market wage” at that point - there’s no such thing as “another candidate already with X years of internal experience” working at your current wage. The person’s current wage is, by definition, the market wage. Reducing it to match a competitive rate for new hires in that geographical region does not make sense, you’re telling someone paid market wage (for them, for the value they currently provide you, which is not a function of their location) to suddenly take a pay cut because a theoretical new hire from that region (who is not a substitutable alternative for this person) might take a lower wage.
Your objection makes no sense.
- balfirevic 6y agoMarket wage is not only a function of value someone provides but also of their alternative opportunities, which are a function of location.
- mlthoughts2018 6y agoSalaries are not often a function of an individual’s alternative opportunities. For example, salaries are extremely durable even in economic downturns. A person might have children and become “locked in” to a job because of sudden family financial obligations, decreasing their ability to job search, pass interviews, or take a risky move. Yet that doesn’t lead their employer to suddenly cut their salary because an external life factor such as family status (which is no different in kind from geo location) changes the landscape of opportunities they could consider.
- balfirevic 6y agoWhat you are describing is a part of what is sometimes called "wage stickiness". It is, as is pretty obvious today, frequent but not 100% universal phenomenon.