There's a debate about this going on in the Google bowl, which I find interesting. Most people are saying they don't have a problem with this, but I think it's deeply unfair.

The argument that resonates with me is that if you move to a LCOL city the value of your output isn't all of sudden worth 25% less.

Curious what others in the industry think.

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likefunny
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Lol there’s no debate in the Google bowl. 95% of the people there disagreed with you.

likefunny

🤣

What if two people are in the same role and making vastly different salaries simply for what office they were aligned to? If you got a pay bump based on being say in NYC or SF, you shouldn't get to keep it if you're going to be completely remote. It's completely fair.

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Here to confirm there’s no debate in the google bowl lol

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Your market rate isn’t determined by your output, it’s just what they’re willing to pay you.

Conversely, if you’ve been doing similar amounts of work but the company stock 10xs should they take away some stock / base salary since you’re getting 10x the economic benefit even though output has remained the same?

If you’re unhappy you are always free to get a new role at a new company.

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Um yes one should get a pay cut if they are moving from Bay Area to be permanent remote in a LCOL area. 18-25% cut is reasonable.

In UT, median housing is 400K while salary is 70k. Locals working for local companies earning local salaries cannot compete with Bay Area transplants when trying to buy a home. They come here with their inflated salaries and RSUs (not a standard benefit in SL metro area) so they can pay for an overpriced home. I know of people who left the Bay right during pandemic and live like kings here for over a year now while locals are trying to scrape up to save for a house. We never had situation where people are bidding $100K over on $600K homes. Ridiculous.

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I'd actually make the argument that it was unfair to give you more (I assume you're impacted or else you wouldn't disagree) for living in a more expensive city. You get the benefits of living of living in an awesome city and can live comfortably (probably not as much though) as people in cheaper cities? Must be nice.

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I understand why companies do it. That's why they want more people to work remote though because it's expensive AF for them. They don't hire in SF for many roles st Salesforce anymore

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If you want to move to a LCOL city and work remotely, do so because you have a better chance at buying a home, etc, NOT because you think you'll pocket the difference between your high pay and COL.

Not sure how it's done at Google, but compensation should have a base pay component based on role and value to the company (of which in-person collaboration could be considered a value), as well as a "geo differential" component (a 1.x multiplier) that's tied to where the employee lives.

This way, other compensation, like bonuses, SPP, etc. that are often limited to a percentage of someone's base pay, won't be skewed unfairly due to non-merit factors.

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*Goes to join the Google Bowl*

I relocated from NYC to TX and got a reduction in pay due to market and actually took home more money per paycheck because there is no state income tax. Market based pay is a real and relevant thing, IMHO.

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