Do you have any evidence for that claim? I don't have anything broad-based, but I work remotely for one of these companies and make exactly what I would if I worked at HQ. And it's not because I'm some super-awesome negotiator.
It never ceases to amaze me how companies try to argue they shouldn’t pay their top wage everywhere, and how workers are willing to accept this. Especially for a remote-only company where your salary should literally not be based on costs in your home region (since the company is not based there, not paying taxes there, etc.).
If you put yourself in Gitlab's shoes and imagine hiring people, it does make some sense. A couple years back I remember reading articles about the oil boom in North Dakota. People were flooding into a remote area that was lacking all sort of services, so next thing you know rates shot up, even for mundane stuff like barbers or auto mechanics. Of course, I don't want to pay twice as much for a haircut or oil change just because some folks in a boomtown a thousand miles away are charging those rates.
Of course, my hair can't be cut and my oil can't be changed remotely, but a REST service sure can be implemented from a thousand miles away. It'll be interesting to see if GitLab sticks with their approach long-term, as I do believe (anecdotally) they are missing out on good talent in second-tier cities.
Perfect description.
I've always been amazed by that blog post.
It reads like a textbook case of bike-shedding(seriously the number of words and engineering thought spent on it is asinine) for what ultimately amounts to faux virtue-signaling about how you're going to get paid 20% below market.
It's kind of interesting to see how the sausage is being made, even if I feel like GitLab would underpay me in my current location.
They literally punish you for working in your own country. Today I work for a company based in the Valley that pays me a great salary, maybe not SV, but also not "median local (Mexico) rates".
When I started looking to opportunities at GitLab, I was surprised at how they punished remote workers based on where they were from.
I could always move to SF or around on a TN1 and earn the full salary, but I am happy where I am.
In my case my employer couldn't have gotten me for too much less, because I did make clear that being an only remote with frequent travel was a negative. That concern doesn't apply equally to everyone, though, and tends to decrease for all as companies adjust to having remotes on every team.