5 ms·

Why does it make sense to pay different per location? Because you should pay equal. If you just use the same number on the payslip, some get more than others.

by Mave83 5y ago

Why does it make sense to pay different per location? Because you should pay equal. If you just use the same number on the payslip, some get more than others. It's like with currency. There is no reason to pay everyone 10k of their local currency, as that won't make sense. But paying 10k of the same makes none as well as for some this means they can have butlers, and other only get a bed under the next bridge. Payment should be equal in Terms of living standard. Otherwise they are not equal.

nightski 5y ago
Presumably if you are in a higher cost of living area you chose to live there because you obtain a higher standard of living (otherwise one may want to re-think that decision). Why should that be subsidized by your peers? Maybe I should get a raise to buy video games?
- chrischen 5y ago
  People should call it “lifestyle based pay adjustment.”
- bryanrasmussen 5y ago
  >Presumably if you are in a higher cost of living area you chose to live there because you obtain a higher standard of living right, or you were born there and have obligations and connections that keep you from saying well I am going to move now because my computations indicate that will be the optimal result! At any rate, if I am in a higher cost of living area and your company will only pay the wage that fits the lower cost of living area that obviously means I will not work for you, and I think that is the case for anyone working in higher cost of living areas. So if you want to hire someone in higher cost of living areas you will have to handle that situation. And then we come back to the considerations that the parent poster said.
- wdb 5y ago
  High cost of living area sadly doesn't mean a higher standard of living. For example, the living standard in UK or London is much worse compared to other countries in Europe (e.g. Netherlands or Belgium).
chrischen 5y ago
I think location dependent pay doesn’t make sense, but on the employee side it means they must now compete for the same job in a location independent way. Either way salaries will probably equalize (get lower).
firstplacelast 5y ago
That seems ridiculous. If I buy something from an online store, I pay the same no matter where I live. I might pay more in transit costs/taxes, but I have personally never seen prices change for the actual product no matter where my shipping address is, which I put in last after seeing the price and adding it to a cart - and I use a VPN half the time, too. Companies are purchasing labor (a product). Trying to undermine the costs because they have inside knowledge on how the meat is made (or where the meat is made) is just them using their leverage to extract a better deal. Totally normal tactic, they do this in every facet of their business. Employees should also grab as much leverage as possible from shopping their product (labor) to competitors or banding together with others (union/guild/etc) to get the best deal. tl;dr It makes rational sense for companies to want to pay different per location. It makes rational sense for employees to say "cool, but no." There are many examples of price not being location-dependent in our capitalist system, at least many I have experienced at a consumer level. But maybe you are onto something and online consumer stores should all start changing the base prices once they see your zip code/state/type of credit card (I'm positive there are already some out there that do things along these lines).
- bryanrasmussen 5y ago
  >If I buy something from an online store, I pay the same no matter where I live. that is probably incorrect. Lots of places charge different based on location.
  - firstplacelast 5y ago
    I did address this fact in my comment as well.
  - dgellow 5y ago
    Isn't it mostly due to different taxes, or when the product is in part manufactured locally (so different costs)?
    - bryanrasmussen 5y ago
      often, but there are solutions out there to allow you to set a location based price - generally based on analysis of what the market in the area will pay - for example here https://www.optimum7.com/blog/programming-2/location-based-pricing.html https://www.optimum7.com/blog/programming-2/location-based-p... you can do it but it is frowned up but as they say here: "The functionality works like a charm, which is exactly how Amazon or Staples.com works! You get to sell the same product at different prices for different geographical locations. During the location-based pricing process, we realized that no matter how frowned upon a system like this may be, your business needs what it needs." which I mean, what your business needs is money, amirite!?

by Mave83 5y ago

nightski 5y ago

Presumably if you are in a higher cost of living area you chose to live there because you obtain a higher standard of living (otherwise one may want to re-think that decision). Why should that be subsidized by your peers? Maybe I should get a raise to buy video games?

chrischen 5y ago
People should call it “lifestyle based pay adjustment.”
bryanrasmussen 5y ago
>Presumably if you are in a higher cost of living area you chose to live there because you obtain a higher standard of living right, or you were born there and have obligations and connections that keep you from saying well I am going to move now because my computations indicate that will be the optimal result! At any rate, if I am in a higher cost of living area and your company will only pay the wage that fits the lower cost of living area that obviously means I will not work for you, and I think that is the case for anyone working in higher cost of living areas. So if you want to hire someone in higher cost of living areas you will have to handle that situation. And then we come back to the considerations that the parent poster said.
wdb 5y ago
High cost of living area sadly doesn't mean a higher standard of living. For example, the living standard in UK or London is much worse compared to other countries in Europe (e.g. Netherlands or Belgium).

chrischen 5y ago

I think location dependent pay doesn’t make sense, but on the employee side it means they must now compete for the same job in a location independent way. Either way salaries will probably equalize (get lower).

firstplacelast 5y ago

That seems ridiculous. If I buy something from an online store, I pay the same no matter where I live. I might pay more in transit costs/taxes, but I have personally never seen prices change for the actual product no matter where my shipping address is, which I put in last after seeing the price and adding it to a cart - and I use a VPN half the time, too. Companies are purchasing labor (a product). Trying to undermine the costs because they have inside knowledge on how the meat is made (or where the meat is made) is just them using their leverage to extract a better deal. Totally normal tactic, they do this in every facet of their business. Employees should also grab as much leverage as possible from shopping their product (labor) to competitors or banding together with others (union/guild/etc) to get the best deal. tl;dr It makes rational sense for companies to want to pay different per location. It makes rational sense for employees to say "cool, but no." There are many examples of price not being location-dependent in our capitalist system, at least many I have experienced at a consumer level. But maybe you are onto something and online consumer stores should all start changing the base prices once they see your zip code/state/type of credit card (I'm positive there are already some out there that do things along these lines).

bryanrasmussen 5y ago
>If I buy something from an online store, I pay the same no matter where I live. that is probably incorrect. Lots of places charge different based on location.
- firstplacelast 5y ago
  I did address this fact in my comment as well.
- dgellow 5y ago
  Isn't it mostly due to different taxes, or when the product is in part manufactured locally (so different costs)?
  - bryanrasmussen 5y ago
    often, but there are solutions out there to allow you to set a location based price - generally based on analysis of what the market in the area will pay - for example here https://www.optimum7.com/blog/programming-2/location-based-pricing.html https://www.optimum7.com/blog/programming-2/location-based-p... you can do it but it is frowned up but as they say here: "The functionality works like a charm, which is exactly how Amazon or Staples.com works! You get to sell the same product at different prices for different geographical locations. During the location-based pricing process, we realized that no matter how frowned upon a system like this may be, your business needs what it needs." which I mean, what your business needs is money, amirite!?