I work at a startup that has acheived a 100 mil valuation in under 2 years. During the pandemic, I moved from SF to Idaho because I love the outdoors. Now after closing a big funding round leadership has said that they need to become more concsious of the bottom line. In that guise, they've said they're going to reduce my salary 10% because I'm in a lower COL city, and that all my other benefits will stay the same. I'm livid. It's not like my level of work or value to the company is going down 10%. If anything, it's going up because I'm happier and more productive. I'm also not getting any more equity. I'm obligated to stick around a bit longer so my shares vest, but a PSA - this is NOT a way to treat your employees in a remote work environment.

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Tbh only 10% from SF to Idaho is still a wildly high paycheck

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^ yup exactly. You can buy a lot more in Idaho and you’re likely getting paid much more than any local job would offer.

Reality check is coming for a lot of employees who fled HCOL permanently.

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I moved from SF to Boulder, CO and my company docked me 15%. Idaho would have been a 20% dock.
I work in the salary/recruiting space and the general discussion is this: is a company buying your time or your work? If they buy your time then a pay cut to reflect a cost of living adjustment makes sense, as your time is less expensive in a less expensive place. If they buy your work, then a company should pay you the same no matter where you work or what your COL is. Honestly I am not sure which answer is correct, and would love to hear people’s thoughts.

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When I hired someone out of state we offered market rate for THAT state. when the employee moved to CA, then we adjusted for COL. this was negotiated upon hiring.

On the flip side, I had someone working in LCOL who moved to even Lower COL market. This person’s salary was not lowered.

right or wrong? Who knows but I think companies are incentivized to adjust for COL to cut costs.

This is super common now. If you think you can get a job that pays more in Idaho, change jobs. Otherwise I think this is the new normal.

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To be fair it goes the other way as well, roles in HCOL areas will always pay more than the same role elsewhere,

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That’s a standard practice - one of our c-suite leaders moved from SF to a LCOL city and their salary was adjusted. They are getting the market rate for their state.

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