Zuckerberg says employees moving out of Silicon Valley may face pay cuts • Hacker News Board

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

#231

Post by pashamur » Sat, May 23, 2020, 1:36 PM UTC

TeMPOraL wrote: post #135

fma wrote: post #73

Earlier quoted context omitted.

And the dev in Eastern Europe is wondering why is the dev in San Francisco getting 10x as them.

The dev in Eastern Europe may do well to be reminded that the dev in SF is losing almost all of that on costs of living, and may actually be worse off in terms of disposable income (relative to its purchasing power in the area).

That might be true for someone that spends most of their income, but if you're attempting to save (to FIRE or something else), you'd be much better off in SF, since your post COL-adjusted take home is still significantly better.

10 years of working in SF and saving frugally, and you can go to the aforementioned places in Eastern Europe to retire for life. The engineer in Eastern Europe cannot do the same.

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

#232

Post by throwawaythekey » Mon, May 25, 2020, 5:12 AM UTC

gwright wrote: post #212

throwawaythekey wrote: post #208

Earlier quoted context omitted.

I struggle to see the mental leap many are making here. Are you stating that cost of living impacts your skill level? In some cases that may be true but I think for what most are discussing here the causation would be the other way. Growing up in a poor area may effect your skill level but moving as an adult from a high COL to low COL area should have minimal impact. To me it makes more sense that each developer woul…

> Are you stating that cost of living impacts your skill level? Not at all. If all things are equal except the cost of living difference then a company can get X units of value at a discount by hiring the person with the lower cost of living at a lower salary. The discount is equal to the cost-of-living difference. Of course in the real world things are rarely "equal" except for cost-of-living and so the effect is on…

> company can get X units of value at a discount by hiring the person with the lower cost of living at a lower salary.

So the hiring process should favour low salaries rather than cost of living?

If that is the case then you can easily replace cost of living adjustments with candidate salary expectation.

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

#233

Post by gwright » Mon, May 25, 2020, 6:26 PM UTC

throwawaythekey wrote: post #232

gwright wrote: post #212

Earlier quoted context omitted.

> Are you stating that cost of living impacts your skill level? Not at all. If all things are equal except the cost of living difference then a company can get X units of value at a discount by hiring the person with the lower cost of living at a lower salary. The discount is equal to the cost-of-living difference. Of course in the real world things are rarely "equal" except for cost-of-living and so the effect is on…

> company can get X units of value at a discount by hiring the person with the lower cost of living at a lower salary. So the hiring process should favour low salaries rather than cost of living? If that is the case then you can easily replace cost of living adjustments with candidate salary expectation.

"market rate" is a metric that incorporates candidate salary expectations and geographic cost of living adjustments as well as many other things such as tax considerations?