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Right now, we are at an unusual point in time where workforces are going from geographically consolidated to dispersed. Thus, we think of the "standard" salary
by ponker 6y ago
Right now, we are at an unusual point in time where workforces are going from geographically consolidated to dispersed. Thus, we think of the "standard" salary as what they pay in San Francisco, and ask for everyone to be paid that.
But the advantage of a remote workforce, from the employer's point of view, is 1) getting the brilliant people who can't leave their hometown to work for you, and 2) not having to pay San Francisco salaries. If you're an incredibly gifted talent, you'll fall into category 1 and they will pay you the San Francisco pay regardless of your location (or you can find an employer who will). But if your contribution is shipping high quality, but fundamentally non-novel, Node apps or similar, you'll find that the "standard" salary is that which is paid in Timbuktu, and if you're sitting in San Francisco and want more, you'll have to provide your employer with a compelling reason, or they'll just opt to hire a second person in Timbuktu instead.
- Ekaros 6y agoWith remote work employers in SF aren't any more competing with talent pool of SF, but national or global pool. Supply and demand in action. Supply has increased, demand remain stable or lower. Means prices(wages) are going to go down. Ofc, if they want people to come and sit in their SF office they have to pay more. On other hand if they can get replacement for their ex-local resource for remote for cheaper they might do that.
- ponker 6y agoSure, I just think the conversation right now is, "Why would you pay me less if I move from SF to Alabama, I'm the same guy doing the same work." The conversation in the future will be "Why would I hire you in SF and pay you three times what I'm paying in Alabama? You're equivalent guys doing the same work." The concept of the "standard" will shift from the highest-paid locale to the lowest, and "Cost of Living Adjustment" will be something that employees in San Francisco plead for, not something that employees in Libya complain about. The only way out of this will be to rebut the assertion "you're doing the same work," i.e. to have skills that are globally unique. Not that you have to be Jeff Dean to keep a job, but that you have to be a whole lot more capable than your peers, the same way that a product is not assumed to be manufactured in America unless there is a compelling reason to.
- TigeriusKirk 6y agoThis is where it ends up. Alabama salaries will rise, but SF salaries will plummet.
- necrotic_comp 6y agoThis is why there needs to be teeth to the laws that limit pay inequality within a firm ; if the CEO of the firm can only make X amount the median or mean (whichever is lower) salary of any person who does work for a firm (including contractors!) then we can hopefully push back on this cost of living BS. Basically, the work is worth something and if we do the work, we should be paid a reasonable amount, regardless of where we sat when we did the work.
- ponker 6y agoWhy does an (American who earns $100K)'s right to earn $200K take precedence over a (Libyan who earns $20K)'s right to earn $40K?
- necrotic_comp 6y agoThe point is that within the firm, there can't be that much disparity in pay - if the CEO wants to make several million dollars a year, he needs to justify that by paying his employees an appropriate amount. If we're talking knowledge work, the work product is the work product, and it doesn't matter where it's generated - the person in Libya has as much right to earn $200k as the American.