“Market rate” is just that: a market rate. In regards to pay, it’s all about finding the salary that’ll get someone to say “yes”, and trying not to go too much

“Market rate” is just that: a market rate. In regards to pay, it’s all about finding the salary that’ll get someone to say “yes”, and trying not to go too much above that. Pre-pandemic, living in the Bay Area, you were commuting to the office, and you were exclusively competing with the people also living in the Bay Area, meaning your labor was scarce. Companies paid more not because of CoL but because the market mandated a certain salary, otherwise you’d just say “no” and work somewhere else. Remote was much rarer, and if you lived in (say) Montana, Google could offer you less money because you’re way more likely to accept a lower salary if you have fewer options and if that salary satisfies you. With this odd moment we have people who negotiated salaries in the Bay market now moving elsewhere to work remote.