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by fourmyle
2221 days ago
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People are going to change their tune once the paycuts start coming. There is no reason to pay SF money to someone living in the Midwest. $80k a year is comfortable most places. I hope remote first people like the suburbs and country because there is no reason to live in the city with no office. The real truth though is most people are far less productive remote because it requires proactive communication and self discipline that just don’t appear because now you are working remotely. This is to virtue signal and get out of expensive real estate in Civic Center SF in Twitter’s case. That area is a zombie apocalypse. If you are fully remote then anyone in the world can do your job. Supply goes up prices go down. I bet execs will get paid the same though. |
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Putting aside the fact that these policies can change on a dime (it's really "permantnet work from home _for now_"), what's really crazy is that people are seriously planning to take companies at their word and are considering leaving the Bay Area and are assuming they are taking their Bay Area comp with them.
Ok, cases:
1. company does NOT to geo-based adjustment to any current employee, but DOES use adjusted salaries for new ones (in other words, path-dependent compensation). Two people, same job, different compensation. This is not that unusual in other industries but can be a source of serious resentment. Suppose a bay area employee moves to India..
2. company uses relocated employees to establish new comp packages for those geos - this will only go so far. many cases will be employees moving to less expensive areas.
3. company sets a "standard" compensation package world-wide that everyone gets - this is impossible to really execute on, or it will be very low relative to peer companies.
and so on. Employees who end up in a case 1 situation will find that after AVERAGE_TENURE they go looking for a new job and end up geo-adjusted. From a company perspective, this is a no-lose golden handcuffs situation and anyway the problem resolves itself quickly.
I tend to believe companies will walk this back as soon as covid-19 dies down, if not right away then as part of executive transitions where someone decides to "transform the business." But in the end it makes no difference - the long term trajectory, if it sticks around, is probably case (1) or some blend of (1) and (2). For developed nation engineers, case (3) is dire, the end of the career.