
Why Gitlab pays local rates - tnolet
https://about.gitlab.com/2019/02/28/why-we-pay-local-rates/
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fxfan
When I choose to live in, say, Shanghai- it doesn't automatically reduce my
cost of living.

I'm losing the security of clean drinking water so bottled water costs me-
~30$ per month. I'm giving up on social security but need to invest in a way
that I have it. I'm giving up on safety regulations so have to buy and do
things accordingly. In the end the cost of living equals out.

I do not living in London so I need to manage my own health.

Any argument about local rates is bogus

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ukoki
Shanghai and London may have similar costs of living after certain factors are
accounted for, but that’s a coincidence not a rule. Compare Manchester and
London. London has much higher rents and higher prices in shops, bars and
restaurants. Everything else is about the same. Ergo, London has a higher cost
of living.

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ergocoder
There are two weak points that I can see:

I live in Bay Area as a single person.

Even though the living cost is high, I still save more than $100,000 USD per
year. Think about it. A $3,000 monthly apartment is only $36,000 a year

If Gitlab pays a local rate, and, say, I live in Vietnam (where I'm from),
it's almost impossible to reach $100,000 USD in savings.

Bay Area's cost of living is high. But the salary is way way higher.

If I joined Gitlab, I'd just move to Bay Area for an instant increase in my
saving performance.

Another one point is that Gitlab will be at a great disadvantage in hiring
outliers (e.g. someone extraordinary). They're gonna demand the Bay Area's
rate no matter where they live. But I suppose Gitlab will definitely make
exceptions for these kinds of people.

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tnolet
hard problem to crack, but the reasoning in the "Standard pay eats away at
production and personnel" paragraph is a bit simplistic. It's not explaining
or supporting the "why". It is just stating the obvious.

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arpinum
payng Different wages where there is freedom of movement does not make sense
to me, especially since only 1/3 of wage difference gets eaten up by rent in
my location. It almost traps people to stay in London when they could be much
healthier and more productive working in Portugal. I don’t see why they even
need people in London for geographic diversity.

Also, their salary calculator for my area is 30% below market, so something is
off.

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tnolet
Weirdly, the salary for a role suitable to me is kinda above market rate.

