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Zuckerberg says employees moving out of Silicon Valley may face pay cuts

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Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#21

Post by kd5bjo »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

Employment is a market, similar to many others. As long as there are a significant number of companies that want you to show up in an office, choosing to live in an area with fewer employers puts you in a different cohort with a lower market-clearing price.

Also, the value you deliver to your employer will change whenever there’s a substantial shift in your working relationship. To the extent that your job requires collaboration, working in the same timezone as your peers has obvious benefits, for example.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#22

Post by coliveira »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

This just shows that companies are on the look to exploit their workers as much as possible, i.e., to make them work for the lowest salary possible for that particular job. It really bothers them that you may take home more money than they can possibly get away with paying you.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#23

Post by Hamuko »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

The $150k is not what your work is directly valued at, but rather an agreement of what it'll take for you to drag your ass to San Francisco, which is objectively a bad place to live if you're a human that has to make budgets, and come to work at Facebook.

Also yes, if Facebook starts to hire remote workers, then your value will drop because they now have the access to a pool of workers who don't want to drag their asses to San Francisco and can pretty easily settle for less since their rent doesn't require them to bleed money.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#24

Post by matz1 »

enitihas wrote: post #9
Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

> You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. You are in for some surprises then. Companies don't pay you just in relation to the value you deliver. Most companies pay the least amount required to get the value you deliver. Now if you are competing against engineers who are willing to accept lower salary due to low CoL in…

That is how thing should be.

Let say I shop for a gadget. I pay for that gadget not because the value it deliver but the least amount required to get the value it deliver.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#25

Post by dqpb »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

> one-sided in favor of the businesses

Remember how Adobe, Apple, Google, Intel, Intuit, Pixar, Lucasfilm, and eBay colluded to suppress wages of Software Engineers?

https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#26

Post by polote »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

> Why? My value to the company hasn't changed! I am still worth the same amount as I was before!

Do we have stats about he difference of hours between remote and non remote employers? I thought the main goal to have those big tech campus is to have dev stay longer at work.

If you are remote you will work less and then your value decrease

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#28

Post by dexter0 »

Jemaclus wrote: post #2

This is one of the things that's always bothered me. Let's say you hire me for your company in San Francisco and pay me $150K. You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. In other words, the company will (eventually) make more than $150K per year off my contributions to the company. But now if I decide to move to Tulsa, O…

> You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value.

Part of that value calculus was that you are willing to relocate (or already reside in) the Bay Area. In other words, if the company offered only $90K and still required you to live in the Bay Area, you and most other qualified candidates would balk at the offer.

> The only thing that changed is where I choose to reside. What difference is that to the company?

Clearly the company is betting that if you walk away instead of accepting the pay cut, they will be able to find another qualified candidate among the now much larger talent pool they are able to court with remote work.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#29

Post by somebrody »

nostromo wrote: post #7

People should be warned that working remotely has been career suicide for as long as I've been in tech. Being "out of sight, out of mind" from management generally means you're passed over for promotions, and often the first to get cut during layoffs. It's just human nature. It's easier to layoff the person that's been working from across the country (or another country) than it is to layoff the person at the desk ne…

It is only suicide for in-company promotion tracks.

It has no effect on your career if you learn to not depend on in-company tracks for your success.

Re: Zuckerberg says employees moving out of Silicon Valley may face pay cuts

#30

Post by enitihas »

matz1 wrote: post #24
enitihas wrote: post #9

Earlier quoted context omitted.

> You've made a calculation: my value to the company is greater than $150K, and $150K is a price you're willing to pay to leverage that value. You are in for some surprises then. Companies don't pay you just in relation to the value you deliver. Most companies pay the least amount required to get the value you deliver. Now if you are competing against engineers who are willing to accept lower salary due to low CoL in…

That is how thing should be. Let say I shop for a gadget. I pay for that gadget not because the value it deliver but the least amount required to get the value it deliver.

Sure, if you think human beings should be treated like disposable gadgets.
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