This shouldn't come as a surprise to anyone who knows the general compensation strategy for all the major tech companies.
They don't pay based either on value added or cost of living (which is why compensation is higher in the Bay Area compared to London).
They pay based on market rate where the target is something like 95th-percentile based on market surveys they do. Presumably this hits some sweet spot in acceptance rate vs cost. Employee compensation is a big ticket item for these companies on the balance sheet so they're highly incentivized to put a lot of thought into their setups.
Additionally if we truly go fully remote salaries will almost certainly go down just looking at the supply change alone. Previously these companies only hired
* A) People who met the hiring bar
* B) People who were willing to relocate to one of office location
If you remove B you've massively increased the available talent pool.
They don't pay based either on value added or cost of living (which is why compensation is higher in the Bay Area compared to London).
They pay based on market rate where the target is something like 95th-percentile based on market surveys they do. Presumably this hits some sweet spot in acceptance rate vs cost. Employee compensation is a big ticket item for these companies on the balance sheet so they're highly incentivized to put a lot of thought into their setups.
Additionally if we truly go fully remote salaries will almost certainly go down just looking at the supply change alone. Previously these companies only hired
* A) People who met the hiring bar
* B) People who were willing to relocate to one of office location
If you remove B you've massively increased the available talent pool.