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Reply to "Employees reveal Google has cut the pay of WFH staff"
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[quote=Anonymous]For those arguing that companies should pay equal wages no matter where a job is done, they do! What you’re missing is that while the skills component of your wage is consistent over geography, the cost of geography (living) is not. An employer wants your skills, not your geography. The only way one gets paid mostly independent of geography is to have best-in-class skills. But, that’s not because the two-part compensation formula fails, but because the skill component dominates. For example, the average person might be paid 70% skill/30% geography. However, someone with best-in-class skills might be paid 99% skills/1% geography. Because the skills component dominates the pay of the experts, it looks like their wage is independent of geography, but it technically is not. [/quote]
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