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We try to equalize net pay taking into account a reasonably consistent standard of living. As mentioned above, equalizing gross salary across geographies where

by bgun 12y ago

We try to equalize net pay taking into account a reasonably consistent standard of living. As mentioned above, equalizing gross salary across geographies where employees have dramatically different purchasing power doesn't feel fair and takes a toll on morale. If you move often and work remotely, it seems to me that salary renegotiation would become as routine as any number of other tasks you doubtlessly encounter.

ryanSrich 12y ago
What doesn't seem fair is that if I move from San Francisco to Kansas City to save money my pay goes down. I'm not doing anything differently. I'm still working the same amount of time, doing the same level of work.
- zaroth 12y ago
  Dollars simply aren't worth the same in San Fran as they are in Kansas City. Your pay is actually not "going down" in an economic sense. Taxes are part of it. If overall state taxes (property, local, state, sales, and other fees) is 25% of your gross in CA, and 15% of your gross in MO, companies can reasonably expect to pay less in MO for the same work. Another way to think about it, what percentile does your pay fall into for similar jobs in San Francisco versus Kansas City. If being paid $120k as a 5-yr Rails Developer in San Francisco puts you at the 50th percentile, move to Kansas City and all of a sudden that same $120k could put you in the 80th percentile (numbers are totally made up). Assuming developers aren't actually smarter in CA than MO, your percentile pay shouldn't change.
  - ryanSrich 12y ago
    But you're still emphasizing a personal decision that I choose to make. Don't worry about what I do outside of work or where I live. Worry about the quality of the work I produce for you and then pay me for it. I completely agree with you in regards to a dollar being very different in SF as compared to KC, but that should have no relevance to how much I get paid. > Your pay is actually not "going down" Yes my pay actually is going down. I would literally be brining in less money. What I choose to do with that money should not matter to my employer.
    - ploureiro 12y ago
      Check your bank account in the end of the month. It's going up! Don't forget that if you earn less money in the same country then you'll pay proportionally less taxes. Made up numbers: CA = 120k gross -> 80k after tax. Another state: 100k gross ->70k after tax; Difference in cost of living: 10k). Now you are breaking even. Of course, totally made up numbers. And as an extra, for every extra dollar you have in a cheaper state, you can do more with it than in CA. Sure, I would love to make the same kind of money in the cheapest corner in the world but companies aren't there to make us rich; they are there to have a business! If you want to try to convince company to pay for what you produce instead of paying a fair salary, try contracting instead (and be good at selling yourself)
      - doug11235 12y ago
        But here are a couple of things to consider. 1. If I make more than approx $106k a year, I cap out on paying FICA. 2. As far as I know, everything I buy at places like Amazon costs the same regardless of where I live (with in the US). 3. Many financial incentives are provided as a percentage instead of a raw dollar amount e.g. 401k's are usually matched by percentage, raises are often a percentage increase.
- Rapzid 12y ago
  Just do not accept a pay cut. Really, if a company needs someone they will pay what makes sense. They may want to pay you less because reasons, but if your their man you can get the pay you seek or just look on.

by bgun 12y ago

ryanSrich 12y ago

What doesn't seem fair is that if I move from San Francisco to Kansas City to save money my pay goes down. I'm not doing anything differently. I'm still working the same amount of time, doing the same level of work.

zaroth 12y ago
Dollars simply aren't worth the same in San Fran as they are in Kansas City. Your pay is actually not "going down" in an economic sense. Taxes are part of it. If overall state taxes (property, local, state, sales, and other fees) is 25% of your gross in CA, and 15% of your gross in MO, companies can reasonably expect to pay less in MO for the same work. Another way to think about it, what percentile does your pay fall into for similar jobs in San Francisco versus Kansas City. If being paid $120k as a 5-yr Rails Developer in San Francisco puts you at the 50th percentile, move to Kansas City and all of a sudden that same $120k could put you in the 80th percentile (numbers are totally made up). Assuming developers aren't actually smarter in CA than MO, your percentile pay shouldn't change.
- ryanSrich 12y ago
  But you're still emphasizing a personal decision that I choose to make. Don't worry about what I do outside of work or where I live. Worry about the quality of the work I produce for you and then pay me for it. I completely agree with you in regards to a dollar being very different in SF as compared to KC, but that should have no relevance to how much I get paid. > Your pay is actually not "going down" Yes my pay actually is going down. I would literally be brining in less money. What I choose to do with that money should not matter to my employer.
  - ploureiro 12y ago
    Check your bank account in the end of the month. It's going up! Don't forget that if you earn less money in the same country then you'll pay proportionally less taxes. Made up numbers: CA = 120k gross -> 80k after tax. Another state: 100k gross ->70k after tax; Difference in cost of living: 10k). Now you are breaking even. Of course, totally made up numbers. And as an extra, for every extra dollar you have in a cheaper state, you can do more with it than in CA. Sure, I would love to make the same kind of money in the cheapest corner in the world but companies aren't there to make us rich; they are there to have a business! If you want to try to convince company to pay for what you produce instead of paying a fair salary, try contracting instead (and be good at selling yourself)
    - doug11235 12y ago
      But here are a couple of things to consider. 1. If I make more than approx $106k a year, I cap out on paying FICA. 2. As far as I know, everything I buy at places like Amazon costs the same regardless of where I live (with in the US). 3. Many financial incentives are provided as a percentage instead of a raw dollar amount e.g. 401k's are usually matched by percentage, raises are often a percentage increase.
Rapzid 12y ago
Just do not accept a pay cut. Really, if a company needs someone they will pay what makes sense. They may want to pay you less because reasons, but if your their man you can get the pay you seek or just look on.