Ask HN: Why not base a tech company in a LCOL area as a hiring incentive?

#1

Post by alexathrowawa9 » Wed, Oct 08, 2025, 8:42 PM UTC

What would happen if a tech company/startup based itself in a LCOL area like the US midwest or south?

Then the company offers say only 70% of tech salaries because it can't compete but with the incentive that everyone can easily afford houses?

The actual salary would be lower but the overall lifestyle could still be better

Have any startups tried this?

Re: Ask HN: Why not base a tech company in a LCOL area as a hiring incentive?

#2

Post by Grosvenor » Wed, Oct 08, 2025, 8:44 PM UTC

Because the product of your company is your companies' shares, and the people who buy those shares are in Silicon Valley.

Re: Ask HN: Why not base a tech company in a LCOL area as a hiring incentive?

#3

Post by toomuchtodo » Wed, Oct 08, 2025, 8:46 PM UTC

You can, just be remote first [1]. Hashicorp, Gitlab, Zapier, are some examples that come to mind, but there are more. Interestingly, I interviewed at Lockheed Martin and they are very remote friendly for some departments and roles (much to my surprise).

[1] https://www.levels.fyi/remote/ (example, not comprehensive)

Re: Ask HN: Why not base a tech company in a LCOL area as a hiring incentive?

#4

Post by duxup » Wed, Oct 08, 2025, 8:53 PM UTC

There are lots of tech companies in the Midwest or South.

The LCOL issues would be the lack of local employees that you can find. So if you go remote heavy… what was the point of going LCOL?