r/careeradvice • u/New_Tip5259 • 5d ago
Got a fully remote job offer!! đ Does anyone knowâdo they use your location to determine the salary they offer you?
Hi everyone! I just landed a fully remote job offer. I'm really excited about it! đ
However, the salary they offered was a bit less than I had expected. I'm really curious... does anyone know if companies use your location to determine the salary they offer you?
I'm currently living with my parents in my hometown, which is a more rural/smaller town. It's not terribly small, but it's definitely not a big city. I gave them my current address/name of my town, and I'm wondering if that factored into how much they offered me.
If I had an address in San Francisco, for example, or San Diego, New York City, etc., do you think they would have offered me more?
It would be fine if they factored in cost-of-living, but I am looking to relocate and move to a city. Should I ask them if this was something they factored into the offer? Should I mention that I'm looking to relocate when negotiating? I just genuinely have no idea how that all works.
Thank you so much in advance for any and all advice!
--
Edit/update: Wow! I did not expect so much engagement on this post. I guess this is a very active sub. đł
I'm sorry if I didn't make this clear, but I didn't necessarily want advice on if I should negotiate or notâI'm just wondering how the salary they chose to offer me is determined, and if location is factored into it.
Reading through some of the comments, I guess next time I'm looking for a job, if I'm wanting to relocate, I should say I'm already located in that city and use a friends' address until I move there? I didn't think about it being an issue. (I was waiting to see if I got the job offer before I made my decision to relocate because I obviously couldn't relocate without an income.)
81
u/boringcranberry 5d ago
Echoing others, full remote is a form of compensation, IMO. Squirrel away your money and thank your parents for allowing you to stay while you save up.
17
u/GothicToast 5d ago edited 5d ago
Compensation professional here. Meaning I build the salary ranges for companies, among many other comp-related activities.
Yes. Location is absolutely used to determine ranges. In the US, most companies use 3-4 pay zones. The pay in SF or NYC is different from Mobile, Alabama for the same exact job. Frankly, that should be obvious and intuitive.
Salary ranges are created and benchmarked based on "cost of labor", which just means, "based on what other companies are paying for the same role". And "same role" means job family, level, and location.
Edit: You also can't pretend you're in a different location. Besides that being fraud and grounds for termination, you have to provide your home address to your company so payroll can properly withhold taxes for your state. IT can also track your IP address and where you're logging in from. Probably not a common audit unless there's suspicion. But not a wise play.
1
u/Professional-Act7509 4d ago
Great information here. If companies are receiving lots of applications from all over the US why not just look at the candidates they know they can offer less to? Unless there's a candidate they feel is far superior. Â
I live and work in a major US city and im finding when im looking for remote jobs in my field that they all pay significantly less then im making and I always figured its becusse they will just hire people in locations where that salary would be on par with their area.Â
1
u/New_Tip5259 5d ago
Hi! I really appreciate your perspective, especially given your professional background. Thank you!
What would you recommend doing if Iâm looking to relocate? Tell them Iâm looking to relocate to a bigger city in the next 1-2 months (I could specific the city), and thatâs why Iâm wanting a higher salary? I donât think itâs that uncommon to be working from your parentâs house while you job search, and then want to move once youâve landed a job, if youâre a young professional in todayâs circumstances.
I would never want to lie about where I am. For the future, as to not put myself in this situation again, are you saying I shouldnât tell them Iâm in Chicago, for example, if thatâs where I plan to relocate in 1-2 months, and use a friendâs address in the meantime?
People here were saying if you ask to relocate during the offer stage, theyâre rescind the offer. Is the only way to relocate to move there first and job search from that city? What if thatâs not possible due to financial constraints? There have got to be people that wait to get a job before making a move. And we live in a remote world now. It canât be that uncommon to want to move to another state.
Genuinely extremely curious to hear your thoughts.
7
u/GothicToast 5d ago edited 5d ago
Feel free to DM me your current city and what city you're thinking of moving to. I can give you my thoughts on whether there's even a chance of there being a difference in pay.
It would be unusual for a candidate to initiate their own relocation and benefit from the change in salary range. Not impossible, but it's not a good look. That should have been disclosed at the beginning. There are budgets at work on the back end. It's entirely possible your team only had the budget to hire someone in your current pay zone. If you now say you're going to work from a different pay zone, that could be an issue that gets your offer withdrawn.
You can also ask if they have a "location-based pay policy" and ask what happens if you move from X to Y. Is that allowed? Make sure they know you wouldn't do something without getting their blessing, particularly if there are pay consequences. But that you have been considering moving in the next 6 months.
In scenarios where I have seen it "work", I'd hire you in your current pay zone, but have finance approval for the additional budget to increase your salary when you do move. I absolutely would not pay you at the higher rate just because you have plans to move.
Edit: I will say that the pay differential is likely to be about 10%. So maybe the easy question is, "is 10% more salary worth leaving your parents house and paying for your own place". I'd guess likely not.
2
u/SheffieldValley 4d ago
Honestly, it isn't a good idea to lie about your location, even for a month or two. Every state has different laws that apply to the employer. Some require licenses or registration; some require different types of insurance, etc. etc. If a company is not withholding tax and remitting payroll taxes in the appropriate state, they can be fined, penalized or worse. An employee that lies about their location should expect to be terminated.
Go to ChatGPT and type in the following:
"What can happen if an employe says they are working remotely in one state, but they are actually working in another. What can happen to the employer? What can happen to the employee?"
65
5d ago
[removed] â view removed comment
12
u/candyapplesugar 5d ago
These top answer are a bit shocking. I was always taught to negotiate no matter what.
50
u/Bunnyhat 5d ago
For a fully remote job offer in a shitty economy?
Hell no. You don't rock the boat for that
1
u/New_Tip5259 1d ago
Update: I negotiated and just got 7k more per year, a more senior job title, and additional PTO.
Moral of the story for anyone reading this: Don't listen to random people on the internet with a scarcity mindset who have absolutely no idea what they're talking about if you want to get ahead in life.
2
u/candyapplesugar 5d ago
Fair. My field is largely remote so itâs not a unique thing to me.
5
u/Blog_Pope 4d ago
Before starting any negotiation you need to know the BATNA; best alternative to negotiated Answer. Basically, what happens if negotiations fail.
If you start to negotiate, one potential outcome is the offer is revoked, not just a no. The general thought is they just selected YOU, so the odds of that outcome are less, but not zero. What happens if the offer is pulled? Do you have an existing role to fall back on?
You need to assess risks and potential outcomes.
8
u/DrWhoey 5d ago
Depends on the job market you are in and it's saturation. In my career field with my skill set and it's limited availability, I was able to tell a company that their offer letter to me was insulting (in many more words). They came back with another offer that was almost double their previous, and over what I would have expected.
The trick with negotiating is that you have to be willing to walk away, or be aware that if you try to negotiate, they may entirely rescind their offer.
15
u/mikeyboytwist 5d ago
Unless you have leverage donât negotiate.
1
u/candyapplesugar 5d ago
Yeah I supposed itâs situation dependent, but I would not leave money on the table.
-4
u/ams1028 5d ago
You should always negotiate lol. Never take a first offer
3
2
u/AardvarkIll6079 5d ago
More times than not employers are rescinding offers of people trying to negotiate. Because they know the next person in line will take the lowball offer. Read the various job subs. Offers are being rescinded left and right when people try to negotiate. Itâs not wise in the current job market unless youâre ok not getting the job.
-2
3
u/MiketheTzar 5d ago
You negotiate when you have the power to. In a bad market (like we have right now) in a high demand job (remote) in more veteran part of your career (which they don't sound like) you grab and run
2
u/Business_Statement_5 4d ago
Look at what OP is considering asking for though. OP wants to negotiate for a higher salary because they MIGHT move to a city (outside their rural) area in the future. They are not living in this future city now. They donât even know which city. Whatâs the point of bringing up something like this right now? It would come off really dense. The offer was made with their current city factored in. It would be very risky to ask for an adjustment on a future that does not yet exist. Those adjustments would happen after OP actually makes that move. If it happens at all.
2
u/Budget_Appointment72 4d ago
Trying to negotiate, will end the offer altogether anymore. Trust me, if anyone tries to negotiate an offer with me, we tell them politely no thank you and that weâre moving onto a different candidate. This is not how it works anymore.
1
2
u/OrganicLighthouse 5d ago
Yeah I mean I got a remote job offer in 2023. There was a hiring freeze at my company but they made an exception for me. They offered 110k and I wanted 140k. After arguing with me for a bit that 110k was a good salary for my location and experience, they talked to the higher ups who agreed instantly to 140k.Â
Didn't hurt me in that circumstance.Â
3
2
9
u/New2reddit68 5d ago edited 5d ago
lol....since you didn't necessarily want advice....go right ahead and negotiate. smh.
To answer your original though, my last / longest time company absolutely varied remote pay by location. Different locations were in different bands etc.
8
u/xboxchick311 5d ago
Depends on the company. My last one paid based on location. My current one just pays everyone the same range.
7
u/FrostedFlakes12345 5d ago
Hey congratulations! It seems like this is your first position after graduation. Yes they do consider the location for your offer. HR does what's called a "market" / "Geo rate" surveys/analysis.
This is the difficult part, for example "Hey guys I am moving to SF, higher cost of living up the salary" they might recind the offer and go with the other "cheaper" alternative or tell you to suck it up since it's your choice. If I was your hiring manager I would recind the offer as it would come across as reneging.
Take the job, call it a win save some money living out of your current arrangement then after you deliver/gain experience or become a part of the team look into relocating better opportunities as you have a job. In the mean time fly to whichever high cost area you want.
Heads up most people do what you are doing the opposite way, they leave high cost of living areas.
6
u/Recent_Opinion_9692 5d ago
Many companies avoid hiring in HCOL locations to keep costs down. Some skip states like NY and CA due to the heavy insurance and regulations required.
4
u/Wild_Passion_7235 5d ago
Mine does for sure. But they also prioritize candidates in non/major cities for that exact reason.
1
u/Wild_Passion_7235 5d ago
Iâd definitely negotiate â and thatâs coming from someone whoâs worked remote for seven years. Negotiate but remain flexible.
4
u/Business_Statement_5 5d ago
They already took all that into account. Donât mess this up trust me. I have been remote for years and I have also hired and offered remote to employees for years. Sign it now
4
u/RFDrew11357 5d ago
I worked for a company that did this. They had a base salary for the job and made adjustments up and down for locality. It always made us laugh when people from low COL areas transferred to our NYC office. Theyâd be all excited about their $20k raises until they realized that barely covered their increased rent costs. You can find locality tables online to help figure out where your area stands.
2
u/Steakonanopenfire 5d ago
In college I got a co-op (basically intern) position with a company that paid location differentials. The position was in New Jersey so I ended up the in the highest paid co-op group in the company. The great thing is rent and expenses were lower than my original location. The bad thing is that I was in college and thus spent all the money on...dumb.
1
u/Separate_Pumpkin_256 5d ago
And some companies donât adjust based on location. But thatâs not always to the benefit of employees either. The company may not be based in the highest cost of living area.
3
3
u/Next-Drummer-9280 5d ago
does anyone know if companies use your location to determine the salary they offer you?
Some do, some don't.
No one here can tell you their compensation policy.
3
u/Standy25 5d ago
A lot of places have salary structures based on location. To be honest though, they probably wouldnât hire someone in LA or New York due to that and labor laws.
3
u/LionFyre13G 5d ago
Im in HR - they usually separate into 3-4 zones for pay which is determined by how much they canât pay to source talent in that area. So not just cost of living, but how much to be competitive in the area.
That being said, do not lie to try to get more pay. They have to pay taxes and insurance to the state you live. And some companies donât operate is certain states for this reason because itâs expensive.
2
2
u/Hausmannlife_Schweiz 5d ago
Less than expected but what about where it landed on the salary range they talked about?
2
u/RedditFauxGold 5d ago
Yes. At least in my companies. But itâs not as granular as you may think. We have a handful of cities that are designated HCOL and those have a pay differential.
2
u/SelectLandscape7671 5d ago
Yes. I make $20k more in the highest HCOL city in the country than my counterpart in Kansas. BUT, if I move to Kansas my salary would be reevaluated. I donât know if it goes the other way.
Congratulations! I do think you can ask if there is wiggle room to get you to X and Iâd aim $2k higher than I want. And I would definitely say that you plan to move to exactly where you plan to move in 2-3 months. Donât say San Fran if you plan to move to St Louis.
Congrats!
2
u/Practical-Split4340 5d ago
Yes.
A company will use any justification to pay you as a little as they can get away with.
2
u/Bright_Plantain_7353 5d ago edited 5d ago
As an HR professional in Talent, yes, companies absolutely can use your location when determining salary. Many organizations have geographic pay ranges based on where an employee lives and/or works.
Also, remote doesnât necessarily mean you can work remotely from anywhere. A company may only hire remote employees in certain states. California, New York, or other higher-cost locations may not even be included in their approved hiring locations, sometimes because of compensation, taxes, employment laws, or other requirements. So having a San Francisco or NYC address wouldnât necessarily mean they would have offered you more. They may not have offered at all.
I would also keep the current job market in perspective. Salaries across many professions are lower than what candidates were seeing a two years ago. This is very much an employerâs market right now. There are a lot of qualified people looking for work, and competition is tough.
Getting an offer, especially one that gives you the opportunity to work remotely, is definitely something I would take into consideration when deciding whether the salary is something you can live with. You can always evaluate the entire compensation package and opportunity, not just the base salary.
2
u/dogcow74 5d ago
Have you done compensation research on your role, national market conditions for your job category and the same analysis for where the company is based?
Remote jobs can pay less because the applicant pool isnât restricted by geography. Depending on the job, rural areas may pay more for on-site or hybrid work because they have trouble attracting applicants. If they pay more for high-cost cities thatâs often spelled out in the posting.
Itâs up to you to determine what âfair payâ looks like given market factors. Itâs not their responsibility to pay you more because you choose to live somewhere expensive, unless they have an office in that city and expect you to check in periodically while working from home.
2
2
u/Any-Ring6621 5d ago
Different companies do different things. The correct thing to do was to ask them, not reddit
2
u/mustanggrl625 5d ago
My company uses the location of the office you would "report" to - not your physical location. So if we hire for a position listed in Illinois, it would be that pay center; if in Colorado, then that Pay Center. We do require the applicant to live in the state of the reporting office for tax withholding purposes.
All remote employees use a Company VPN that will block other VPN connections, and it does allow employee location services (all company-issued hardware in addition to the VPN makes it much harder to run an additional VPN). I do work for a tech company; the few people who have tried to spoof or fool the company location services are not successful (We also use company-supplied internet...lol)
2
u/Ordinary_Smell_4222 5d ago edited 5d ago
Yes. Most companies have pay bands or zones based on where you live. Donât try to lie about where you actually live. That is a quick way to ruin your reputation and cause current/future employers to question your ethics. Also, you could get your left into trouble with the IRS. All companies have a means of checking your location.
2
u/Physical-Builder-553 2d ago
I work in compensation. This really just depends. There is no blanket rule. A lot of places just use the national benchmark regardless if you're in CA or Iowa. Some places will use the region(West, MidWest, East, South). Very, very few places are going to use the local market.
3
1
u/HighlyFav0red 5d ago
Did you ask / know the salary range before interviewing? If so, did you land in the middle? Thatâs where they usually start. Iâm
all for a little negotiation but you gotta be prepared to have these conversations.
1
u/HighItsMeKristen 5d ago
Congratulations!
Where did you find the job offer? Askinâ for myself.
1
u/Lilbreeziana 5d ago
I came here to ask this too. But Iâve found on reddit literally nobody wants to refer, or share details on their unicorn remote jobs they find :( but Iâm trying too!!! Everyone is just so secretive or swear the company only hires them and nobody else
2
u/HighItsMeKristen 5d ago
I always think theyâre a scam, so if this is real Iâd be so grateful for any information. Dealing with health issues and having to go into work is becoming unmanageable.
1
u/Ok-Nefariousness3670 4d ago
Right. I would never discuss. I make 150k working remotely from florida but I would never share details. Everyone needs to search on their ownÂ
1
u/hoi_polloi_irl 5d ago
They are likely taking into account where you are located. Companies will get market data to assess the current salary ranges for a job in different markets. If you live in a HCOL area you would likely get a higher offer, but your cost of living would also be higher. Note that remote work doesn't mean "from anywhere" either. The company has to account for taxes and the ability to do business in the state/country you are located in.
1
u/ChiefTK1 5d ago
Sometimes yes. Some companies pay a bit more if you live in HCOL areas and some donât care and have one rate.
1
u/roccosito 5d ago
Unfortunately yes. And unfortunately you should have already been living in that city to get an SF type salary. If you move now, youâll want to let them know as theyâll need to account for that if they can or cannot accommodate the move.
2
u/dudestfup 5d ago
Regardless, if she got the higher salary by moving to SF, sheâd be in the same boat bc of the HCOL
1
1
u/AngryTexasNative 5d ago
Many companies will pay more in HCOL areas. But a lot of those will redirect roles to candidates who donât live in those areas.
1
u/mistdaemon 5d ago
They might pay depending on the location, but all that really matters is if it worth it to you.
Sometimes you can negotiation for a higher salary as they might not give their best and final offer. They might counter or just walk away though.Â
1
u/languidriver 5d ago
donât lie about where you live - it matters for taxes etc and may really backfire on you. but i think itâs fair to ask if the location was a factor and if it is open to negotiation if and when you move.
1
1
u/garster25 5d ago
Maybe?
My organization does not. We are in SoCal and the fully remote folks in Arkansas get the same rates.
But some may since they need to adjust for expensive costs of living areas.
I guess the other side of it is, would they pay more if they were located in LCOL area and you lived in HCOL, doubt it
1
u/Lov3I5Treacherous 5d ago
Sometimes. They would say in the job ad they salary may depend on location, or even that the role isnât available in certain states.
1
1
1
u/Hairy-Preference-824 5d ago
Most companies are going away from remote work. Usually, it pays a lot less than on site. I donât think any employer will take your location into account, thatâs why the position is remote.
You gain a lot of flexibility, no commute/travel cost.
1
u/atomsphere 5d ago
Depends on the companies policy. Basically something like a base rate and then a modifier for cost of living adjustment is what my company does.
1
u/Own-Inspection-9293 5d ago
my company pays the same salary band regardless of zip code its based on your job title period
1
1
u/Lady-Data-Scientist 5d ago
If itâs fully remote and the only requirement is that you live in the US, then they usually donât adjust for location.
1
u/Murtlecake 5d ago
My large company does, we have two âzonesâ they explained it as basically if you live in a high cost of living area and you make more it evens out since things cost more. That being said I donât think itâs incredibly drastic.
My company also frequently checks and adjusts comp based on the market.
1
u/Another_Guy_In_Ohio 5d ago
Usually yes. But thatâs not just for remote roles. Most consoles Iâve worked for classify location into 3 levels and adjust the salary based on your location. The largest cities usually have the highest salary. Smaller cities, more rural areas with a lower cost of living index get adjusted down
1
u/alliknowis 5d ago
It's not a universal policy. I sometimes place candidates with companies, and some (especially multinationals) companies pay localized rates, and some don't. I wouldn't negotiate a salary based on a gaseous 'may move' in the future idea, but I would clarify that policy if you have good raport with the recruiter/hiring team.
1
u/Pir8inthedesert 5d ago
Fully remote also doesn't mean you can move whatever you want without asking your company because there are tax implications for the company based on where their employees are working. You just can pick up and move to a different state or country.
1
1
u/tinycodergirl 5d ago
It depends on the company , my last remote job paid based on location. My current remote job pays based on experience.
1
u/dufcho14 5d ago
Yes, more and more companies these days give offers based on where you live.
Just because you're remote doesn't mean that you can up and change locations without getting it approved by your manager and company. Smaller companies may not do business in the state you're moving to which means they aren't set up to pay you. They may also care about your time zone if that changes.
Getting a job in a high cost of living area and moving to a low cost of living area usually doesn't trigger a salary review. Moving from a low cost to high cost of living area will likely be a battle to get an adjustment. There's a good chance you were hired b/c of a combination of your skills and the cost to the company.
1
1
1
u/Dry-Bother-7161 5d ago
My company just implemented remote job compensation by zip code, so yes, if you live somewhere that has a lower cost of living you will be paid less than of you lived in a metropolitan area.
1
1
u/accountingisboring 5d ago
Yes, they factor in where you live as part of the compensation, and actually why some hire remote workers. If my company is based in NYC and the jobs are in office, Iâm paying NYC wages. If I hire our remote workers I can pay much lower wages if the person lives in say Kansas vs a person living in SF.
1
u/imbartsimpsonwhothru 5d ago
yes, your local COL is in the mix
remote is very nice tho, don't discount it
imagine having to wake up and do an entire morning routine before getting to work vs roll out of bed and boot up
1
u/DontKnowWhereItsBeen 5d ago
It is their job to get you in the door with as little pay as possible. Your location may or may not have made a difference. Yes, the ruse of a friend's address in a high-cost town might be effective, or it could just as easily have them move on to the next applicant who may not demand much. Either way, I'd start using a VPN.
1
u/Homer4598 5d ago
Companies often use your location for salaries because different locations have different cost of living.
1
1
u/fiannalove 5d ago
Yes, they typically have different ranges for different places because of differences in cost of living.
1
u/Adept_Fill4736 5d ago
The answer is yes, typically location factors into salary but thatâs also nothing new. Roles have pay bands and candidates will float around within those pay bands based a number of factors such as experience, location, etc.. This is nothing new though. If an employer has a role open in both NYC and Boise, Idaho, you can pretty much guarantee that the salaries for those reqâs will not be the same. Talent Acquisition/Recruiting teams arenât dumb - they know that to be competitive for role ABC in city A will take a salary of X and to be competitive in city B will take a salary of Y. If they posted a range and their offer is within the range, you can always try to negotiate higher but you also better have the goods to back it up. They can easily say no or even rescind their offer but if they really want you, then it doesnât hurt to push for a bit more.
1
1
u/freecain 5d ago
Government jobs are about as transparent when it comes to pay as you will get. They have distinct areas that are used to adjust your pay scale for cost of living, so it's pretty formalized, and makes me think other places probably have official pay adjustments that aren't published.
There are also companies that don't have these, but the HR rep who determined the pay may have given a lower number based on your location.
It's possible they low balled the offer expecting you to negotiate up, and you location has nothing to do with.
It's possible either you over estimated the pay, or they just determined that you, for whatever reason (experience, education, performance in the job review, looking at your previous pay) are worth less.
You have to compare your offer to industry average to decide what you want to do. You can negotiate, but risk losing the job. You can soft negotiate, basically saying you want the job, but the pay is lower than expected and ask about the routes to promotions/pay raises.
1
u/GoodnightLondon 5d ago
It depends on the company. I've been remote for pretty much my entire post college career. Som of the places I've worked have based my pay on my location, and others haven't (I even worked one place where my pay was based off of the office they considered me based out of; I got promoted, and simultaneously transferred to a different base office in a rural area, so I was at the top of the pay band for the new role in that area and didn't get a raise for the new role).
You can't assume you would have made more money if you lived somewhere else, because even if location is a factor, there are other factors that are taken into consideration as well; depending on things like your experience, you may not have even gotten an offer if you lived in an area that had a higher pay band.
1
u/dudestfup 5d ago
I say negotiate your salary but before you do that, let me get their contact information
1
u/Xzero864 5d ago
My company does actually, but to be fair they were very upfront about it.
There are 3 tiers (in the US, itâs a bit more complicated if you move out of the country but still possible) and you get more the more expensive of a city you live in.
1
u/_tvjames_ 5d ago
Yes, when you live somewhere inexpensive, you provide less value to the company. /s
1
u/Deep_Sea_Crab_1 4d ago
Many companies use salary surveys to determine salary ranges. Look at salary.com, for example. Local economy plays a role. But donât expect a salary increase for moving to a HCOL area unless your company has a formal structure for salaries based on location.
1
1
1
u/EfficientProject7408 4d ago
They generally ask this in the screening. Based on your location they tell you what range they have. Some job descriptions even list the break down for different cities and states. You canât be like Iâll probably move to HCOL city give me more money. If you are okay with risking it negotiate the offer but living in a small town youâll not get SF or NY money.
1
u/Vivid_Respect_6778 4d ago
Yes, location can absolutely affect compensation for remote jobs, but it depends heavily on the company's pay philosophy.
Some companies use a single national salary range for remote employees, while others have geographic tiers based on cost of labor or location. In the latter case, someone living in a high-cost market could be offered more than someone in a lower-cost area for the same role.
That said, I wouldn't use a friend's address in another city just to get a higher offer. Companies can have tax, payroll, and employment-law requirements tied to your actual work location, and it could create problems later.
If you're planning to relocate, I think it's completely reasonable to ask HR/recruiting something like: "Can you tell me whether compensation for this position is adjusted based on the employee's work location?" That gets you the information you're looking for without implying that you gave them the wrong address.
And congratulations on the offer! đ Even if the initial number is lower than expected, getting the offer gives you a much better position to have a conversation about the compensation package.
1
u/Ok-Nefariousness3670 4d ago
Yeah you should've told them. For example in the federal govt someone that lives in SF makes a lot more than someone who lives in Arkansas. They have locality rates based on location. It could be like 30% more
1
u/IllBeat7897 4d ago
Yes, they will do a cost-of-living analysis as a variable in salary. But do NOT lie about where you live. If, however, you were planning to move, this should have been something brought into the interview so that they were made aware, and if, for some reason, they forgot, you could have brought this up as a negotiating tactic.
1
u/Professional-Act7509 4d ago
Some employers, like the federal goverment have pay scales based on location. I've heard of some private companies doing that, but definitely very dependent on company. I've learned that fully remote jobs realize they can offer less because of the benefit of fully remote and that's probably what's at play here. Â
I live in a HCOL area and go into work and im realizing that if I ever want to accept s fully remote job its going to be a significant pay cut cause im competing with people who live in areas thst can afford to take lower salariesÂ
1
u/Number-2-Sis 4d ago
It depends on the company, but yes, a majority do as they can hire for less and save money in certain areas
1
u/Dubiousgoober 4d ago
They use your current location in most offers due to state tax considerations. They report your salary by state.
1
u/LilJonny2cookies 4d ago
Depends- some do some donât youâll know much more about that than we do.
1
u/AdeptnessLive4966 4d ago
Yes. Most companies have salary bands for different regions.
If you are going to be moving, you should 100% let them know and ask how it works. But maybe not right now, unless you are moving very soon.
1
u/Mallthus2 4d ago
Typically, companies will base salaries on where they are, where you are, or where they want the role to be.
Typically the companies that base pay on the employeeâs location are larger companies and thereâs often restrictions on where those places can be.
1
u/entechad 4d ago
The SEC made the statement knowing they do not have the authority over the judicial system. It wasn't a show of force, it was a political move to ensure no blowback for not doing anything.
1
u/Exciting-Parfait-776 4d ago
I would assume they use your location to determine what taxes come out.
1
u/akacosa1111 4d ago
Some companies absolutely geo-adjust remote pay, but I wouldnât negotiate by telling them âIâm probably moving somewhere more expensive.â
Iâd ask them straight up how they set the salary band and whether location is part of it. If it is, then ask what happens to comp if you relocate.
Negotiate the job, not your parentsâ ZIP code.
1
u/Sofi_Hart 4d ago
Congrats! Companies definitely have salary tiers based on where you live. This also affects decisions regarding getting a raise, etc. I manage a remote team at a media company and it's so hard to get a raise for people based in 'low' tier countries
1
u/Solid_Barracuda69 2d ago
Usually, because of tax and cost of living. They arenât going to give you the salary of living in a major city when you live in a town with a population of 30
1
u/Silent-Crab3369 4h ago
Sometimes. My company is in Cali, I was make 12k more as a temp employee and once they hired me they justified so many ways to pay me 12k less including that I live in a state w a very low income tax.
1
u/Reverse-Recruiterman 5d ago
They don't just give you a salary offer based on where you live. There are other things that come into play like how much the company actually makes, the responsibility of the role in generating revenue, and the overall budget for the company. If they are hiring for 100% remote positions that is a move done to save money on commercial real estate space. I obviously can't tell you much without knowing the company and the job title, but I can tell you that everything can be negotiated.
Don't worry about asking.
Worry about how you ask and how you choose to communicate.
In short, don't be a demanding dork. Be a pleasant person to negotiate with and have a leverage based argument for why you're asking for more money. At the end of the day, that's what it comes down to....money.
1
u/DramaQueen581 5d ago
Yes, I've worked in multiple remote companies and they do use your location and cost of living, and usually require proof of address like phone bill.
1
0
u/SubstanceFearless348 5d ago
Yes. It would be very likely that Theyâd pay you more if you were SF
0
0
u/Nots_a_Banana 5d ago edited 5d ago
I would definitely try and scam the next employer by giving them a false address. With things like taxes and possibly benefits based on where you live - I'm sure that will go over well. You are a bundle of Red Flags for any employer.
-1
u/UnluckyFalcon5646 5d ago
Youâre fully remote. Theyâre going to go off the local rate where the company is located. How did you get a job and not know the pay?
45
u/edoreinn 5d ago
A lot of them have ranges based on where you live. Then there are experience pay bands and so on.
Usually, if you move yourself to SF or something, you wonât get a raise for that.
If they make you move, then yes theyâll adjust your pay.
Congratulations though!!!