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New Remote-First Formula and Updated Salary Calculator

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Re: New Remote-First Formula and Updated Salary Calculator

#21

Post by watty »

jjeaff wrote: post #9
hajile wrote: post #8

Why do companies continue to pay out higher salaries to devs in high cost of living areas? In this case, their payscale pays out 30-50K more in high cost living areas vs low cost areas. Rather than blow revenue rewarding bad life choices, offer to move them to an area with lower costs of living. Do that for only 10 employees and you have 300-500K EVERY SINGLE YEAR to re-invest into your company. In practically any ot…

Most likely, they have found that some really good developers want to live in specific places with really high standards of living and since they are good, they could easily get a job somewhere else and stay in the city they want to. Not everyone is willing to just move for a job if not necessary.

So pay the really good developers higher based off of what they deserve to get paid, not where they live. The problem is that there are bad developers who want to live in expensive places and great developers who prefer to live in non-expensive places.

Re: New Remote-First Formula and Updated Salary Calculator

#22

Post by aantix »

Open salaries are only great if you’re some introverted, beta developer that can’t speak up for themselves.

“Everyone’s the same. Hooray Marxism!”

If you’re good and you have any sort of gumption, negotiate hard and take the money the feeble leave on the table.

Re: New Remote-First Formula and Updated Salary Calculator

#23

Post by pimmen »

hajile wrote: post #8

Why do companies continue to pay out higher salaries to devs in high cost of living areas? In this case, their payscale pays out 30-50K more in high cost living areas vs low cost areas. Rather than blow revenue rewarding bad life choices, offer to move them to an area with lower costs of living. Do that for only 10 employees and you have 300-500K EVERY SINGLE YEAR to re-invest into your company. In practically any ot…

If your devs are located in a bigger city, you can have an office located in that bigger city. If you have an office in a bigger city, you can recruit easier since there's more devs in a bigger city.

If your devs are in a bigger city, there's a good chance they went to the bigger university in that bigger city. If you have devs from a bigger university you can more easily recruit from that bigger university.

If your office is in a bigger city, you can have more relevant personell in that bigger city such as sales and marketing. If you have sales and marketing in a bigger city, you can reach the customers in that bigger city. A bigger city has more customers than a smaller city.

If you have your devs in a bigger city, you can recruit devs from different industries in that bigger city. Bigger cities have more industries present, meaning you can bring in devs with different skillsets.

Basically, discouraging devs from living in big cities can be a very bad idea because. Opportunity costs are real costs.

Re: New Remote-First Formula and Updated Salary Calculator

#24

Post by falsedan »

hajile wrote: post #16
jjeaff wrote: post #9

Earlier quoted context omitted.

Most likely, they have found that some really good developers want to live in specific places with really high standards of living and since they are good, they could easily get a job somewhere else and stay in the city they want to. Not everyone is willing to just move for a job if not necessary.

It takes quite a good dev to generate 50K more valuable than another dev in another area. There are cases where that is true, but it's not universally true. In this particular case, there's a baked-in assumption that a beginner dev in SF is worth more than a senior dev in a low-cost area.

I feel like you are using salary to measure worth. A junior dev in SF isn't significantly better than junior devs elsewhere; but the salaries are higher in SF, so if you don't match the salaries, you can't hire any junior devs.

> so, just hire in low-cost areas!

The company execs might be based in a high-cost area (because of family ties, property ownership, etc.), and also might not be ready to eat the cost of running a remote organisation.

Re: New Remote-First Formula and Updated Salary Calculator

#25

Post by mlevental »

aantix wrote: post #22

Open salaries are only great if you’re some introverted, beta developer that can’t speak up for themselves. “Everyone’s the same. Hooray Marxism!” If you’re good and you have any sort of gumption, negotiate hard and take the money the feeble leave on the table.

r/thatHappened

Re: New Remote-First Formula and Updated Salary Calculator

#26

Post by simonw »

hajile wrote: post #8

Why do companies continue to pay out higher salaries to devs in high cost of living areas? In this case, their payscale pays out 30-50K more in high cost living areas vs low cost areas. Rather than blow revenue rewarding bad life choices, offer to move them to an area with lower costs of living. Do that for only 10 employees and you have 300-500K EVERY SINGLE YEAR to re-invest into your company. In practically any ot…

Because if you do that, they'll find another employer that doesn't force them to move.

Living in a high cost area is not a "bad life choice".

Re: New Remote-First Formula and Updated Salary Calculator

#27

Post by maxxxxx »

aantix wrote: post #22

Open salaries are only great if you’re some introverted, beta developer that can’t speak up for themselves. “Everyone’s the same. Hooray Marxism!” If you’re good and you have any sort of gumption, negotiate hard and take the money the feeble leave on the table.

I have seen plenty of times that people who thought they were the tough negotiators turned out to be on the low range of pay when we discussed salaries. Information is always good.

Re: New Remote-First Formula and Updated Salary Calculator

#29

Post by oletos7 »

aantix wrote: post #22

Open salaries are only great if you’re some introverted, beta developer that can’t speak up for themselves. “Everyone’s the same. Hooray Marxism!” If you’re good and you have any sort of gumption, negotiate hard and take the money the feeble leave on the table.

Open salaries = communism? wat.

The article provides zero reference suggesting their employees did not negotiate for a higher salary.

Re: New Remote-First Formula and Updated Salary Calculator

#30

Post by falsedan »

aantix wrote: post #14
hajile wrote: post #8

Why do companies continue to pay out higher salaries to devs in high cost of living areas? In this case, their payscale pays out 30-50K more in high cost living areas vs low cost areas. Rather than blow revenue rewarding bad life choices, offer to move them to an area with lower costs of living. Do that for only 10 employees and you have 300-500K EVERY SINGLE YEAR to re-invest into your company. In practically any ot…

How about just pay them to the value they bring? Why did location ever play a part? If the dev works on a rarely used admin app, surprise, you pay them lower.

Surprise, they quit to move to SF and get paid 3x as much.
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