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It's fun to reason about location vs pay. For work that truly is location-based, it's obvious. I once read that a garbage truck driver in NYC earns as much as
by fleddr 5y ago
It's fun to reason about location vs pay.
For work that truly is location-based, it's obvious. I once read that a garbage truck driver in NYC earns as much as 100K. I don't know if that number is true, but it kind of makes sense. It's strictly location based and the driver has to live somewhat close to the inner city.
Google was/is location-based, where being in an ultra high cost environment normally is a downside, so it must have unique upsides to counter this. I guess that would be the local talent pool and ecosystem.
Whilst this factor will not be removed, for sure it will be weakened. In any given team, on any given day, there will be remote workers. The other 2 days of the week. Those with a permanent exception. Those with an extension. Things are going to get more flexible and complex which means your team by definition is hybrid. In practice, a hybrid team is quite similar to a fully remote team if you do it well. You should involve the remote workers in anything of any importance.
If your team is hybrid/virtual by definition, the idea to pay based on location of the individual comes into play. The talented 200K engineer that moved to South Dakota to work fully remotely now is a 100K engineer.
I guess 100K is the talent value, when location is stripped. But location hasn't been stripped yet. There's Europe, India, other places...so ultimately what remains may be 50K. Yes, I'm making up these numbers but you get my point.
Those saying that it's bullshit to pay people based on location and think that this means that they can just keep that 200K and work from a different location are in for a rude awakening. It means you compete on talent only. If you're so top notch that purely on talent you continue to earn that pay, good for you. But be aware that you're in competition for that salary with the entire world now, and that world has armies of people hungry and willing to do anything.
And if you think that downward spiral is unfair...no it isn't. This is how it works in the working class in the west and in every class everywhere else. What you consider low pay in developing countries has been the step up for those developing countries. Whilst the west is largely stagnant, they've been building up a better quality of life. As it should be.