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> No matter how you try to spin this, it's by all accounts an act of discrimination to pay one person less than another purely based on where they live.. Compa
by csallen 3y ago
> No matter how you try to spin this, it's by all accounts an act of discrimination to pay one person less than another purely based on where they live..
Companies aren't gods charged with dispensing fair wages to us mortals. They are participants in the capitalist market.
And in that market, all prices are a matter of negotiation.
In any transaction, the buyer wants to pay as little as possible, and the seller wants to earn as much as possible. This isn't evil or greedy. It's a basic incentive that comes from the fact that people/companies/literally everyone prefers to have more money than less money.
Thus, your company wants to pay you as little money as possible, and you want them to pay you as much as possible. The same is true when the roles are reversed and you're the one in the buyer position. For example, when you're shopping, you want to pay as low a price as possible, and the seller wants to charge as high a price as possible.
Again, all prices are a matter of negotiation..
Power in a negotiation comes down to your BATNA, i.e. your best alternative if negotiation fails. Put simply, whoever cares the least has the most power.
In a capitalist market, that BATNA for the buyer is the next cheapest option. The next furniture store that's selling this couch for cheaper. The next adequately qualified software engineer in the Bay Area who's selling their services for cheaper. And the BATNA for the seller is obviously the next most generous spender. The customer who's willing to pay a little more. The company that's willing to pay higher salaries.
If it sounds like I'm conflating two concepts by comparing customers with employers, and businesses with employees, it's because you've been brainwashed into thinking these things are different. They're not.
When money changes hands, whoever receives it is the business. Whoever pays it is the customer.
That means, in the relationship between you and your employer, you are the business selling a service, and they are a customer paying for your service. Your salary is just a price. Your resume was an advertisement. Posting it everywhere was marketing. Interviewing was your sales pitch. As an employee, you are a business. (Someone just came along and renamed all the terms to confuse you.)
Which raises the question: Why on earth would your customer voluntarily pay a higher price than they need to? If all the stores in your area are cheap, why would they pay you more for your services than your neighbor is asking for?
When you travel to a country cheaper than yours, do you pay every restaurant, store, and taxi driver the same way you would at home?
No, you don't. Because that would be foolish. You pay local rates, which are less.
That's the same thing companies are doing when they pay lower salaries in cheaper areas.
- zokier 3y agoIf businesses were perfectly rational economic actors then all bay area/sv devs would be out of jobs. > When you travel to a country cheaper than yours, do you pay every restaurant, store, and taxi driver the same way you would at home? > No, you don't. Because that would be foolish. You pay local rates, which are less. But if you could magically teleport to store or restaurant anywhere in the world, would you pay high prices to go to SV restaurant or store? No, that would also be foolish. So local prices make sense of physical businesses because people pay premium for convenient access, for not needing to fly half-way across the world to do your groceries or whatever. But that same does not apply to full-remote developers; the work(/value) is getting delivered to the business all the same regardless where the employee happens to be physically sitting.
- deleted 3y ago[deleted]
- qznc 3y agoIf the work/value delivered would be the same, then all software development would have migrated to Vietnam already. For some reason, companies think it is important that some developers are physically in Silicon Valley and they pay a lot to get that. Is it about language and timezone barriers? No, because there are plenty of alternatives in the US as well.
- zokier 3y agoIf physical location is significant then it's not full remote position. Beyond that, this is not just about sv vs rest of world, but about doing per-location adjustment based on local economic conditions. And it is pretty difficult to argue that the value of a developer to business is in anyway linked to their cost of living