4 ms·

I have a similar question - If I am applying for a remote position, is it justifiable to ask for the average salary of the country the company is incorporated

I have a similar question - If I am applying for a remote position, is it justifiable to ask for the average salary of the country the company is incorporated at, even if living cost in current country is much cheaper? I know that some remote first companies (such as Gitlab) has a complex salary calculator which takes into account all sorts of things, while some companies (like oxide.computer) pays a flat compensation for any place on earth.

lucb1e 5y ago
From my limited experience talking about the topic, it seems it's usually somewhere in the middle. The company has the same benefits (assuming you're good) as when hiring local people, but they also very well realize that you'll be paying maybe a fifth of the rent as when you need to rent in Amsterdam (or where ever they are). You can get some benefit there by getting a good salary, but also be reasonable about it. Of course, this doesn't apply if the very reason they're hiring remotely is because they want to cut on costs. Some companies hire eastern European or Asian people because they're cheap, not because they can find enough people locally. In such a case, I presume they'll try to get you as cheaply as possible...
onion2k 5y ago
Working for a company where the salary is based on location means when you eventually go to meet up (at a retreat, a conference, etc) you will know that you're paid much less than your colleagues for the same work. That will suck. Avoid those companies.
- k__ 5y ago
  This. Only do such things if you're in for the exprience and want to leave soon.
- mjaniczek 5y ago
  I was in this situation: the (remote) company paid based on location, but also they paid about 2-3x as much as top companies from my country, and definitely 3-4x as much as what I earned in the previous job (local company). Just want to say that it doesn't need to be all bad.
- balfirevic 5y ago
  > That will suck. It will only suck if you decide that it's supposed to suck. People in more economically developed countries already get paid much more for the same work. It's not in your favor if you decide that you better never share an employer with them.
  - onion2k 5y ago
    You can tell yourself that it doesn't really matter, but it will eventually. For a start, your colleagues probably won't see you as an equal. We equate pay to seniority, so someone who is paid less is considered more junior even if technically they're not. That leads to getting the sucky work and not being trusted with complex tasks as much. If there are layoffs then you'll been seen as the least likely person to be let go because you're cheaper, so others will resent that. Obviously companies deny this happens, and some actively work to stop it if they're good and progressive, but it still goes on. Admittedly this is from the perspective of working in the UK and looking at US companies employing remote workers here, so the pay difference isn't so great as other places. If you're somewhere that pays significantly less so the remote job is still hugely better than local wages I imagine that would go a long way to mitigating the cognitive problem of working with people who are paid a lot more for the same role.
    - balfirevic 5y ago
      > You can tell yourself that it doesn't really matter, but it will eventually. It's not a hypothetical, I've worked a lot with US companies (I'm in Eastern Europe) and it doesn't have to matter at all. > We equate pay to seniority, so someone who is paid less is considered more junior even if technically they're not. That leads to getting the sucky work and not being trusted with complex tasks as much. This has also not been true (I mean generally, it can sometimes happen, but actual cause might not even be the pay discrepancy).
- benhurmarcel 5y ago
  It's the norm in international companies. I'm in Europe and work daily with colleagues doing exactly the same work, with the same bosses, but located in a different country (like Germany, the US…). Everybody perfectly knows that they are paid much more than us. Some people also worked there for a while and accepted a large pay cut to move where they wanted. Well if we're not happy with that, we can try to find a job over there. Honestly I don't think most people feel bad about it.

lucb1e 5y ago

From my limited experience talking about the topic, it seems it's usually somewhere in the middle. The company has the same benefits (assuming you're good) as when hiring local people, but they also very well realize that you'll be paying maybe a fifth of the rent as when you need to rent in Amsterdam (or where ever they are). You can get some benefit there by getting a good salary, but also be reasonable about it. Of course, this doesn't apply if the very reason they're hiring remotely is because they want to cut on costs. Some companies hire eastern European or Asian people because they're cheap, not because they can find enough people locally. In such a case, I presume they'll try to get you as cheaply as possible...

onion2k 5y ago

Working for a company where the salary is based on location means when you eventually go to meet up (at a retreat, a conference, etc) you will know that you're paid much less than your colleagues for the same work. That will suck. Avoid those companies.

k__ 5y ago
This. Only do such things if you're in for the exprience and want to leave soon.
mjaniczek 5y ago
I was in this situation: the (remote) company paid based on location, but also they paid about 2-3x as much as top companies from my country, and definitely 3-4x as much as what I earned in the previous job (local company). Just want to say that it doesn't need to be all bad.
balfirevic 5y ago
> That will suck. It will only suck if you decide that it's supposed to suck. People in more economically developed countries already get paid much more for the same work. It's not in your favor if you decide that you better never share an employer with them.
- onion2k 5y ago
  You can tell yourself that it doesn't really matter, but it will eventually. For a start, your colleagues probably won't see you as an equal. We equate pay to seniority, so someone who is paid less is considered more junior even if technically they're not. That leads to getting the sucky work and not being trusted with complex tasks as much. If there are layoffs then you'll been seen as the least likely person to be let go because you're cheaper, so others will resent that. Obviously companies deny this happens, and some actively work to stop it if they're good and progressive, but it still goes on. Admittedly this is from the perspective of working in the UK and looking at US companies employing remote workers here, so the pay difference isn't so great as other places. If you're somewhere that pays significantly less so the remote job is still hugely better than local wages I imagine that would go a long way to mitigating the cognitive problem of working with people who are paid a lot more for the same role.
  - balfirevic 5y ago
    > You can tell yourself that it doesn't really matter, but it will eventually. It's not a hypothetical, I've worked a lot with US companies (I'm in Eastern Europe) and it doesn't have to matter at all. > We equate pay to seniority, so someone who is paid less is considered more junior even if technically they're not. That leads to getting the sucky work and not being trusted with complex tasks as much. This has also not been true (I mean generally, it can sometimes happen, but actual cause might not even be the pay discrepancy).
benhurmarcel 5y ago
It's the norm in international companies. I'm in Europe and work daily with colleagues doing exactly the same work, with the same bosses, but located in a different country (like Germany, the US…). Everybody perfectly knows that they are paid much more than us. Some people also worked there for a while and accepted a large pay cut to move where they wanted. Well if we're not happy with that, we can try to find a job over there. Honestly I don't think most people feel bad about it.