I'm negotiating a remote offer with a company based out of a high-cost city, but I live in a much more affordable area. My background and skills definitely match what they'd pay someone local to them. I'm wondering how or if I can negotiate for a higher salary without losing the offer. Should I push for the full market rate based on my qualifications, or accept an offer that's somewhere in between?

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Some companies pay based on your location and not theirs.

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It's their replacement for an employee who is in that location, but if OP is being considered, so are other remote candidates who likely aren't expecting or negotiating based on the company's location.

Do not try and convince yourself otherwise OP, as it's related to remote work, the company's location is not your bargaining chip.

smart

I would try to meet them somewhere in the middle. Unless you’re an expert negotiator or a unicorn, they are likely going to prioritize their budget considerations over your salary goals. Definitely push for more, but consider you may only be in contention purely because you’re the cheaper option.

likesmart

For full remote roles, companies are often paying significantly less. Without knowing how much difference there is between your offer and full market rate, it’s difficult to answer your question, but most roles we encounter for full remote, the companies specifically will NOT pay close to full market like they do for in-office, because (1) they don’t have to pay full market rate to get qualified applicants and also (2) because the employee has less expenses associated with the job (no commute expenses, no daily work clothes requiring dry cleaning, can live in cheaper areas, etc.) and (3) ultimately, it’s going to operate differently and be a different role than an in-office role.

You can negotiate for a higher salary IF you feel YOUR skills/talents/experience/current comp, etc justify a higher comp. 10-20% higher counter perhaps, if you feel it’s justified. You will need to be able to articulate the reasons why you feel the higher comp is justified.

It shouldn’t be based on what in-office people get in the higher cost city, because that is not the role they are offering you.

like

I’ll stereotype here and say that people who live in lower cost of living cities (like Detroit) usually go to mid tier schools and work for mid tier companies…maybe you have the experience but you’re competing against people with connections, Ivy League colleges, etc. Go ahead and ask for a slightly higher pay but they’re going to assume someone from the Midwest is less expensive than someone local and that might be the whole reason they opened the job up to remote employees.

likefunny

I think it depends on how much you want the role and how much leverage you have. If you’re their top pick and the skills line up, I’d ask for the full rate. If they try to meet you in the middle, at least you’re not starting negotiations there.

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Did the recruiter or hiring manager mention that they would pay you less because of your location? If so, I wouldn't try to negotiate. Instead, I'd recommend asking how you can grow in your role and potentially earn more in the future. If they didn't mention your location as a factor influencing the salary they're offering, then you can negotiate so long as:

1) your ideal salary falls within the company's posted range (if they posted a salary range),

2) you weren't told that the salary is fixed or that negotiation is not acceptable,

and 3) there isn't a note in the job description saying that you can't negotiate.

Call the employer so that your authenticity comes across. Here's what you could calmly say: "Hello, [Name]! Thank you so much for the offer. I feel honored and excited for the opportunity to work for you. I did some research on [salary websites you used] and noticed that this type of job pays anywhere between X and Y. I would love to make Z. I can assure you that if we can agree on this, I will exceed your expectations. In fact, I put together a job-matching matrix that shows how my experience relates to the job, and I would be happy to share that document with you. Would that be possible?"

Make sure the number you give is within the range you found in your research.

The job-matching matrix is a document with three columns:

1) The requirements listed in the job description
2) The reasons why you believe each requirement is necessary (discuss what would happen if the requirement weren't met)
3) Your relevant experience that meets or exceeds each requirement

I hope this helps! Good luck!

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