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Location-based Salary vs Job-based Salary.

As I was researching some companies for applying, I saw some huge companies (like gitlab) are paying based on the location of the employee rather than role!


So I'm curious, what to expect while going into the interview, I'll be compensated based on what I bring to table or based on my location?


The idea that I'll get less compensation while doing same thing as others sucks. Is there any way to find it out upfront?

On which bases your company compensates sales professionals?

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Pachacuti
Politicker
5
They call me Daddy, Sales Daddy
While certain allowances need to be made when someone is NY/LA based vs Des Moines based, personally I have always been a fan of merit based compensation. Probably why I'm in sales.
Notmyrealname
Politicker
2
AE
I used to work for a large cybersecurity firm based in SF. Wages for SF based workers were double what others were on. Eventually they opened up more locations to avoid paying over the top for employees.
jefe
Arsonist
2
🍁
If they are remote and their output is the same, then they're not increasing overhead by requiring office space in a high-cost area so why tf would they be paid less?

If it's in-office, that's another story. but remote? Fuck that
UrAssIsSaaS
Arsonist
3
SaaS Eater
Ive worked at a remote company that tiered compensation based on the area you live and tied comp to cost of living in that area. It doesn't always have to do with the over head of office space.

Not saying its right or wrong but just pointing other reasons out why companies do it.
jefe
Arsonist
4
🍁
I've definitely heard of this, but I look at it as more of an excuse than a reason or justification.

There's no additional overhead (barring some potential tax implications, but that's not my area of expertise) in employing someone working remotely from SF/NY versus Nebraska. If the person in Nebraska is doing the same work and producing the same numbers as someone in SF, then how does it make sense that they're paid less, aside from the company trying to keep their payroll costs as low as possible.
UrAssIsSaaS
Arsonist
2
SaaS Eater
I dont disagree, just pointing out how companies have justified it in the past.
UrAssIsSaaS
Arsonist
2
SaaS Eater
Ive seen this both ways. The only time i've seen pay based on location is to adjust for cost of living. I don't necessarily agree with it but i've worked for a company that pays like 10% more than standard salary for super high cost of living cities and then 10% less for middle of nowhere.

If you are trying to understand how a company pays I would reach out to some AEs that work there, ask them about the role, challenges, what works, and pay.
TennisandSales
Politicker
1
Head Of Sales
so it should be bases on role. and i say that as someone in the midwest who has an awesome cost of living.

so if the bros in SF get paid more for my same job i of course want that pay too.

i have found that comp if more often determined by "experience" not location or role, although those play a factor as well.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
In my opinion it should be the same based on role. I would feel unfairly compensated if my other AE team mates made more or less than me (base salary) due to them being in a different state.
UrAssIsSaaS
Arsonist
2
SaaS Eater
What if you live in Tuscaloosa, AL and your teammate lives in NYC or SF. Say your base is 10% less but their cost of living is 25% higher?

Just playing devils advocate
CuriousFox
WR Officer
2
🦊
Yes. This has me torn. I get both feelings.
washedD1soccer
Politicker
1
Regional Sales Manager
Location should have nothing to do with anything. I don’t care if you work in a shack in the arctic. Choosing to live in NY/SF should not impact what the midwesterners make. Everyone is doing the same job. Having higher cost of living is a choice that was made.
ThomasRCallahanIII
Politicker
1
Enterprise Account Executive
Salesforce does both

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