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

Post by jpeg_hero » Thu, May 21, 2020, 9:06 PM UTC

amscanne wrote: post #77

jpeg_hero wrote: post #41

Earlier quoted context omitted.

I always see comments like this from individual contributors. I'll give you the managers perspective. You may be worth $150k, any one individual engineer could be worth multiples of that! Look at your entire engineering team, from best to worst. Is not there some inflation of salaries in the SF Bay area? The bootcamper that is making $110k out of bootcamp? Are they really 73% as effective as you? The marketing person…

You’re acting like the company is assigning value to people and paying them accordingly. That’s not how it works. Pay is determined by the labor market. Substitute wizzle for “senior engineer”, and wozzle for “bootcampers” or “marketing”. Facebook pays $150k for wizzles because that’s what it costs to get good ones. It pays $110k for wozzles because that’s what it costs to get good ones. People (reasonably) want a sp…

Post by google234123 » Thu, May 21, 2020, 9:06 PM UTC

sct202 wrote: post #85

joshpadnick wrote: post #34

We're a remote-first company and went through this same discussion when we began hiring people in different cities, not just in the USA but all around the world. What we found is that any approach to setting salaries has to balance the following factors: * Pay people enough to live comfortably * Pay people enough that they accept our offer vs competition * Pay people in a way that feels fair * Pay people in a way tha…

How do you do the cost of living adjustment? I've used a few just for fun before and have gotten wildly different results for NYC vs Chicago (+21%, +51%, +75%) from the first few listed on Google.

Post by mrkurt » Thu, May 21, 2020, 9:07 PM UTC

Vysero wrote: post #89

mrkurt wrote: post #59

Earlier quoted context omitted.

I'm disappointed that all the replies to this sentiment are "lol, it's supply and demand". I mean, maybe that's it but it's not a very useful thing to think about. As someone who's run two remote companies now, I have struggled with this dilemma as an employer. Because I agree with you, if a person is worth $x to the company, their location doesn't change that. The flip side, though, is that I also want people to be…

"Not everyone can move to optimize their relative adjusted income"-- Yes and not everyone can get married, and have a partner to share the load with either. So does that mean a bachelor and a married man should be paid different salaries? Not everyone can find the time to run a side business. So should those who can be penalized? You pay your employees what they are worth to the company and forget entirely about what…

Post by mech422 » Thu, May 21, 2020, 9:09 PM UTC

librish wrote: post #58

This shouldn't come as a surprise to anyone who knows the general compensation strategy for all the major tech companies. They don't pay based either on value added or cost of living (which is why compensation is higher in the Bay Area compared to London). They pay based on market rate where the target is something like 95th-percentile based on market surveys they do. Presumably this hits some sweet spot in acceptanc…

Post by bcyn » Thu, May 21, 2020, 9:10 PM UTC

Vysero wrote: post #93

bcyn wrote: post #69

Earlier quoted context omitted.

Because the Bay Area is one of the only places where the supply of potential employees is high enough to meet the company's demand.

You mean to tell me that companies in the Bay Area never pull employees from schools outside of the Bay Area? I get the feeling there is a much more valuable reason for being based in the Bay Area than that.