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Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
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Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#2There are probably multiple reasons for this. But here are a few that come to mind:
Nepotism - It would be naive of me to think there is no nepotism in hiring.
Hiring abroad can be a nightmare - Let's say the $50K employee is in another country. You now need to: A) Become familiar with the legal and tax implications of hiring someone from that country B) Establishing a company in that country in order to hire that person C) Finding out how to manage your new company in the new country. Paying taxes etc The reason employers of record services like https://deel.com/ have become so popular is because hiring that $50K employee will now probably take a lot of time and money.
Larger Talent Pool + Competition - The company still competes with other remote first companies that pay $200k for the same role. Therefore, simply paying less will cause candidates to seek out other companies that pay more. In addition, offering $200K to anyone anywhere in the world means that you have a LOT more applicants, which could allow you to choose the best when money is no object.
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#3Presumably for the same reasons not all work is outsourced to India.
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#4It depends on what you're implying.
You're simply not going to find good, consistent, loyal talent for $50K USD.
That said, you should be able to find it at a higher price point under $200K.
The simple fact is that most companies aren't paying this much for either in-person or remote work. The average salary for an IT professional is still under $100K in the US, and well under that in many other countries.
As far as why a company may pay $200K for talent, some employees are simply worth that much (or a lot more).
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#5[deleted]
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#6Are you already upper management, or just have aspirations at this point?
Don’t forget to mention avocado toast. Those employees expecting more than $50k are just spoiled, aren’t they.
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#7Presumably for the same reasons not all work is outsourced to India.
Careful with how you word things. Some c-levels would take your comment as a challenge, and follow up with a “yet.”
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#8Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#9Earlier quoted context omitted.
Careful with how you word things. Some c-levels would take your comment as a challenge, and follow up with a “yet.”
Ours have :(
Low cost geo? Offshore technology center? Surely they didn’t just call it “outsourcing.” That would be rather crude.
But if India was called out, perhaps leadership is behind. That’s not the only low cost geo. Far from it. It can even be spendy, relatively speaking! You can save a lot by spending a little, bootstrapping a LCG even. Hopefully no other companies try to pilfer your cogs, but maybe you can pilfer theirs.
“Low cost geo” = “cheaper cogs” = only upper management are people.
There are valid reasons to spread a workforce across time zones. Coverage, availability, reasons that respect human existence rather than put a price on it.
But so often the reason is “this saves me money, the end.” Upper management seems to gravitate to the delusion that they personally are mental giants that can move mountains, and the cogs are interchangeable - and those over there are cheap!
Is upper management responsible for not adequately forecasting and planning for the cost of paying existing employees, if not hiring new ones? No, it’s the high maintenance cogs that are wrong.
Or maybe the economy, or covid, please understand layoffs are brutal on leadership, so stressful. Better schedule an exec retreat!
Re: Ask HN: Why do companies that allow remote pay $200k when they can pay $50k?
#10Are you already upper management, or just have aspirations at this point? Don’t forget to mention avocado toast. Those employees expecting more than $50k are just spoiled, aren’t they.
Can't be upper management yet, at least not at my company; otherwise, rather than complaining about paychecks, they'd be complaining about allowing WFH at all >_>