Don’t see how COL is any more or less than familial status. Or perhaps suburban versus. Perhaps they should lower salaries of workers who live in exurbs? Or what about employees who inherited their home? |
So if I can outsource most of my functions to another country and pay 75% less, should I also give my US staff a 75% pay cut? |
Do you find people who lists there homes for more money in Boston than an identical house would cost in Boise to be doing something unethical or unfair? |
Again, you seem really young and naive. Your family life choices have nothing to do with your employer. Exurbs are still part of the metro area, and pay will commiserate. |
DP. Sweet pea, you are trying to operate way above your pay grade. Maybe take an intro to economics course. |
Cool. Wanna answer the question, or just want to insult? |
Then why are you suggesting that moving my a family to a different city should result in a decrease in pay? |
Maybe people who are hardworking, self-motivated and highly competent don't need to be kept in check? Perhaps more the point? |
If your company would still need some US-based employees, then you will need to pay a salary that will attract the necessary employees, even if it more than you would need to pay similar employees in another country. If you want to outsource the rest, that is your choice. For those US-based employees, if you need them near your physical office in a high COL area, then you need to pay huge local rate for that job. If the job can be done remotely, you can cut costs by employing people from lower COL areas. This is pretty basic management. I am an attorney, and have been amazed at the shortsightedness of our legal assistants and other support staff clamoring to work from home full-time. They seem to have zero appreciation that if they demonstrate the job can be done just as efficiently fully remotely, there is no reason for us to pay DC wages for local legal assistants when we can hire people in the Midwest for a fraction of the cost. |
Because of supply and demand. I think maybe look at it the opposite. Why would an organization pay more than they have to in compensation to get the talent they need to get the job done? If you paid $20 for a hammer in Boston, but could pay $5 for that hammer in Boise, wouldn't you do that? If you once paid a plumber $200 per hour, but could find another plumber to do it for $100 an hour, wouldn't you choose the latter? Any worker that is unhappy with their pay can choose to look for another job. |
PP here and I think we're in agreement? PP appeared to be saying that geographic location should have nothing to do with it and everybody should be paid the same. I was attempting to make a hyperbolic point to the PP I was responding to that employers should pay the rate necessary to pay to get the talent they need to do whatever the job is, and the geographic location is an important factor in that rate. |
|
This is one of those things that the labor market is going to sort out naturally. What “should” happen is irrelevant. If employers can’t get enough workers with current policies, they’ll change the policy. If they can’t convince top talent to work for them when they pay less in ID, the top talent will go where they CAN be paid more. If a corporation can get enough workers with differentiated geographic pay, then that’s what it will continue to do.
What we’re seeing now is flux as the labor market is re-balancing itself after the pandemic, when it was discovered that almost 40% of US jobs can be done from home. |
Because companies are inefficient and everyone knows this. Technically anyone who works on a computer could have their job replaced via outsourcing. Including your job. But the reality is that it doesn’t happen. There are a variety of challenges in outsourcing work - the language barrier, time zone, culture, expense of one of these outsource workers traveling the globe to reach the home office etc. Technically most office workers just demonstrated for two years that their job could be done remotely. Why don’t you try to save your company some money and hire legal assistants in India? |
No, what the pandemic has demonstrated for many employers is that people can work well enough remotely in a crisis, but it often comes at some significant costs, especially if you are responsible for planning beyond the immediate moment. Now employers are trying to balance employees’ understandable interest in working from home with the employers’ interest in recapturing what was lost during WFH. |
Why wouldn't you? Or just get rid of them entirely and outsource everything. If you could achieve the same result for a lower price, you should do that. And a public company is legally obligated to do this if it is in the best interest of the shareholders. I'll never understand the love of working at home on this forum. People are just demonstrating the ease with which their jobs can be outsourced. I worked at home for two years out of necessity and hated it. I like having work-life separation, and I'm a shy introvert who benefits from seeing actual people in person at work. I also made the choice to live downtown within walking distance of my job, so working at home cost me real money (lights, heat, etc., plus dedicating some of my apartment space to my employer without being paid for it. If working at home works for you, that's great, but there are many of us who hated it. As soon as the pandemic was more-or-less over (February), I left that job and took an in-person job. It was one of my better decisions. |