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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

#221

Post by bcyn »

kthejoker2 wrote: post #174
bcyn wrote: post #164

Earlier quoted context omitted.

Would that image or media related incentive exist without the huge amount of tech work in the Bay Area? My point is that the pull of the Bay Area is cyclical - supply of tech workers fuels the SV image which fuels more supply of tech workers. I think it all started with tech workers though. If Stanford or another incubator of tech innovators was in podunk MT, then we would be discussing that location instead.

Yes, look at all the AI growth at Carnegie Mellon, University of Waterloo, Tallinn, Estonia - any relatively well-managed metropolitan area can position itself as an "innovation hub", the US West Coast certainly doesn't have a monopoly on it.

I think you're agreeing with my point? Those areas are hubs for hiring too, for the same reason? Albeit not to the same degree as the Bay Area.

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

#222

Post by economicslol »

dlp211 wrote: post #177
economicslol wrote: post #158

Earlier quoted context omitted.

>I'm not really picturing THAT many brilliant developers that fall under the bucket of: a) really smart and able to pass FAANG interviews b) not willing to relocate if they did get a huge offer What about anyone that wants to own a home before they are 40? Even on FAANG salaries its very difficult to buy when millionaires are snatching up fixer uppers for $1M+ all cash.

Every person I work with is under 40 and everyone that wants to own a home, does. SF and NYC are not the only tech hubs in the US.

>SF and NYC are not the only tech hubs in the US.

Also confused. I agree with your point. My comment was responding to a person who couldn't imagine people who wouldn't move to SFBay for a FAANG level salary/job.

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

#223

Post by mrkurt »

nmfisher wrote: post #217
moljac024 wrote: post #214

Earlier quoted context omitted.

What's the difference?

“Gets paid more” means single employee makes $100k, employee with a family makes $150k. “Costs the company more” means they are both paid a salary of $100k, but the healthcare insurance for the employer with a family costs $50k extra.

It costs the company more. It also provides value benefit to an employee with a family. I'm not sure that distinction really changes anything. :)

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

#224

Post by username90 »

economicslol wrote: post #222
dlp211 wrote: post #177

Earlier quoted context omitted.

Every person I work with is under 40 and everyone that wants to own a home, does. SF and NYC are not the only tech hubs in the US.

>SF and NYC are not the only tech hubs in the US. Also confused. I agree with your point. My comment was responding to a person who couldn't imagine people who wouldn't move to SFBay for a FAANG level salary/job.

You can just move to any of the other big cities that have big offices. It is easier to get a job in SF, but if you are good enough you will have no problem getting a job there.

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

#225

Post by economicslol »

username90 wrote: post #224
economicslol wrote: post #222

Earlier quoted context omitted.

>SF and NYC are not the only tech hubs in the US. Also confused. I agree with your point. My comment was responding to a person who couldn't imagine people who wouldn't move to SFBay for a FAANG level salary/job.

You can just move to any of the other big cities that have big offices. It is easier to get a job in SF, but if you are good enough you will have no problem getting a job there.

I don't understand. I agree. What is your point? We're talking about why people may not be interested in moving to the Bay Area...

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

#226

Post by ForHackernews »

pyuser583 wrote: post #143
Vysero wrote: post #61

Earlier quoted context omitted.

If the company was hemorrhaging money on employee salaries by being based in SF then why wouldn't they simply move the company somewhere else?

The bay area offers a guaranteed supply of qualified employees. A tech firm in Boise might not be able to hire and Elixir developer at any price. In SF, there will be employees as long as you have cash. Not so elsewhere.

> A tech firm in Boise might not be able to hire and Elixir developer at any price.

I think the timescale matters. If it became known over a period of years that some company was paying $1mm for Elixir devs in Boise, loads of folks would consider learning Elixir and moving to Boise.

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

#227

Post by stackcrash »

GhettoChild wrote: post #189
PunksATawnyFill wrote: post #185

Earlier quoted context omitted.

Amen. Anyone running a company who opts to put it in San Francisco or Silicon Valley at this point is issuing a big F-U to employees. And this pay-cut policy is bullshit. If employees are allowed to work offsite, then that site should not be dictated. It's a win/win, because although the employee saves money, so does the company. And thanks to Trump and Republicans, employees can't even deduct the money they spend on…

I have heard so many people justify companies locating in the Bay are due to the talent found in the area. While that may be true I have a hard time believing that companies would not be able to recruit in cheaper large cities like Austin, Dallas, Chicago, Philly, Etc if they offered Bay Area money.

100% of the jobs I turn down are ones wanting me to move to the Bay area. I get paid the same already as my peers in the Bay and don't have to live there.

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

#228

Post by stackcrash »

mrkurt wrote: post #125
ip26 wrote: post #82

Earlier quoted context omitted.

It seems like the top end would drop a lot more than the median would rise. Given the poaching it seems clear SF has a scarcity of developers that satisfy FAANG, and scarcity drives price up radically. If remote work becomes more widespread, the scarcity condition would presumably evaporate. Socially speaking it could be a very good thing. Many of the big challenges we are facing (wealth disparity, political polariza…

Those companies already hire all over the world for the scarce, high dollar engineers. I don't think top end compensation will drop while those companies are monopolies. Most of those salaries balloon because they poach people from each other.

The amount of remote positions FAANG offer is tiny compared to other companies. If they open up to hiring the majority of positions as in office or remote the salaries will drop a lot for the Bay area. They will be more inline with the other companies in the Bay that hire in office or remote as options for almost any position.

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

#229

Post by [deleted] »

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…

[deleted]

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

#230

Post by 6gvONxR4sf7o »

volkk wrote: post #79
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…

> If you remove B you've massively increased the available talent pool. i'm not convinced this is the case. maybe by a bit...but massively? if you look at all of the places that all of the top paying FAANG companies are located--lets keep it within the US for simplicity's sake--you've got basically all of the major cities with the top talent. I'm not really picturing THAT many brilliant developers that fall under the…

Even local remote work could get a larger talent pool. Say you live in the outer sunset, or marin, or something. Getting down to facebook's headquarters could be a massively long commute. Hell, imagine commuting from SF to apple HQ. Allowing remote work lets people in one part of the bay area work in the whole bay area. There's a ton of talent in the bay area that's soul-suckingly far from these companies offices.
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