The Winners of Remote Work
nytimes.com
nytimes.com
It's an interesting and important observation that good communicators win disproportionately as telecommunications get better - e.g. because recorded music is a thing, as a songwriter/guitarist I'm competing with Frank Zappa for mindshare. But this just isn't about remote work. Feel like I got clickbaited.
That said, behaviors will have changed for a lot of things over the course of a couple of years. People have developed new habits. Not all of that--including going into an office five days a week in many cases--are going to just reset.
Why would I want to drive 10-15 minutes, park, change and all that for a 30 or 60 minute spin class when I can take that same class in my garage or living room.
While I have no personal interest in gyms or exercise classes, they are social for many people.
This doesn't fit into everyone's wants and needs...but just because you can't fathom why YOU would want to do something doesn't mean there isn't a completely valid reason for those around you.
I don't see this mentioned enough but the fact remains: when you work from home you also live at work. It's a two-edged sword. Its hard to unplug when you sleep next to your desk.
Sometimes I go to the store, just to leave work/home. A gym sounds nice too, just to go somewhere else.
The only Americans who might be vaccinated in the future but aren’t vaccinated today are children under 12. The FDA is in no hurry on this because it doesn’t make much difference anyway (minimal vaccine risks loom larger next to minimal COVID risk).
Things could of course be much worse - it's possible that the COVID molecule is somehow unusually well situated for immune escape and length of immunity won't matter that much; those of us in countries that can afford it will get our semi-annual microchip infusion with the latest flavors.
It might be that their pre-COVID apparent preferences remain their actual preference post-COVID, but I would not take that for granted.
I think the big losers are the service workers that provided services for all of those office employees: coffee shop workers, restaurants, drycleaners, caterers that provided employee lunches, cleaning people, etc.
A Starbucks, a drycleaner and 2 or 3 restaurants that were in my former office building have shut down permanently. My company stopped stocking snacks and catering lunches 3 days a week, and presumably they or the building have cut back on cleaning as well as general building maintenance staff.
Some of those jobs will come back when (if) we return to in-office work, but since it will probably be part time in-office work, not all of those jobs will be back.
Food trucks seem to be doing pretty well - when employees dispersed, they did too. I don't go into the city much since I don't go to the office, but now I visit the same food trucks in my own town and they seem to be pretty busy.
(N.B.: There is one Specialty’s location that has re-opened, near Moffett in Mountain View; apparently the family that started the chain decades ago bought the assets, and their one original location, back.)
When I work from home I just make coffee or lunch at home - I don't drive down to the strip mall for lunch. But when I go to the office, I eat lunch out with coworkers, and my bus drops me off right in front of the Starbucks so it's easy to stop in for coffee.
I doubt that the employees that the lost jobs from the businesses that served offices were all just displaced to the suburbs, but if you have a reference for that, I'd like to see it.
I think it is too early to say.
And given the shortages in servering labor, we may see a shift in the jobs people have as well.
Otherwise this article would just be the fairly obvious statement that people who kept their jobs are "winners" over those who lost their jobs.
Exactly! I am surprised so few people here see that.
It is a pattern that happened with other technologies before. Music recording allowed some pop stars to become millionaires while most musicians lost income. Movies allowed some actors to get rich while most actors lost public. Industrial manufacturing (e.g. woodworking, textiles, tanning) made some industries big while millions of artisans lost market. Franchised merchant stores (e.g: Tower Records, Toys'R Us, WallMart) destroyed thousands of small merchants.
The economist J. Schumpeter had a name for this: "creative destruction".
Lower floor because a global workforce increases supply of programmers available to the western market.
Higher ceiling because every company is now competing for the top people, who are in limited supply and know how to get top compensation.
So yes, I do think this applies to remote work in general.
My recent anecdote: Startup out of stealth a month ago informed me during 2nd round that they were only considering programmers willing to relocate and live in Austin. No remote option whatsoever. Asking what would happen if there are additional lockdown measures reinstituted, for Delta or even just whatever other 'virus-of-the-year' comes along, they didn't have any answer other than to repeat Austin-based only.
Bonus: Their founders and early execs are today only located in SF bay area and have no plans to relocate and the in-office only policy would only be for the devs.
Hire good people, entrust them with executing on core business needs, allow them to choose however they make the magic happen.
With enterprise I'm playing more with averages so that one person on the team that may not be carrying their weight isn't going to drag down the entire business. For a startup where it's more critical that everybody be firing on all cylinders it makes sense they want to have more control and accountability to make sure their limited resources are being spent appropriately.
In person, it's trivial to see everyone coming up to my desk, hear me jumping into team discussions, and so on. Remote, it's on me to let management know that's what my time is being spent on, and if I'm lying it's significantly harder to verify.
Sounds like you dodged a bullet there.
Short-term, we're going to see companies pursue a remote model in order to attract talent. This will be great for employees; live in Colorado, go on hikes and have a great lifestyle while commanding a SF salary!
Longer-term, companies are going to realize that (except for the top ~10% of performers, who will always command a high salary) having remote workers in the US is functionally equivalent to having remote workers in Mexico or Argentina. US workers are in for a rude awakening when they realize they're competing in a labor market with a more driven, lower cost-of-living population in the rest of the world.
Shameless plug – I wrote a blog post about all of this back in December: https://paranoidenough.com/2020/12/07/Labor-Market-Arbitrage...
Why do we need our lawyers, accountants, human resources and other back office employees to be American when Chilean workers will do those jobs for half or a quarter the pay?
What outsourcing did to manufacturing jobs, remote work may do to white collar jobs.
Would it cut the need for the local experts? No. Would it reduce their numbers? Maybe, it could also diversify them. Would it lower the cost for the service? I also think so.
> The difference here is that there are professional associations with both the ability to discipline people who don't follow the rules, and a deep interest in doing so.
If I understand correctly, then indeed yes, it would be hard to disrupt this space. But I have a feeling someone smarter than me, perhaps even yourself, will find a way to go around it. At one point taxi medallions seemed unmovable.
Taxi disruption worked to various degrees depending on how much the local certification meant - in most locales it was just "Can drive cars" - in areas where there is a geographic knowledge test the ride-share disrupters have fared less well. I think it's essentially the same for lawyers - their certification is extremely non-trivial, a lot of laywers only ever get certified in a single state due to how much of an investment it is and how little value you get out of it.
I could see a proposition coming from the opposite side - trying to unify portions of the law so that the regional specialty becomes irrelevant - but you'd need to fight against a lot of unfriendly folks and sovereignty concerns to do anything on that front.
Instead, the market players we can see in the legal space today focus elsewhere - legal matters that are predictable enough that you can essentially mass-produce responses for needs. For common contract law this seems like a great fit - but as soon as anything gets complicated you need to pull a warm body into the mix.
So your target for disruption is law firms and your strategy is to do something illegal to build a huge business that destroys them?!?
You also have to take the CPA exam to become a CPA, but that looks like you can transfer your accreditation to another state.
Happily hire north/south, but too many hours east/west and people have to give up off-time just to have regular meetings
We're working with some contractors with a 9 hour time difference between headquarters and their office, but having really efficient weekly check-ins against concrete, written goals, good async communication, and a lot of people scattered in timezones in between is helping us succeed.
It definitely takes coordination and a good team, but I think it can be really useful. Most of the experts for the super specific thing we're working on are actually in Europe, so it would be more challenging to do this project if we limited ourselves to north/south hiring.
The idea that we'll be competing with other US-based workers is wrong.
In the long run our remote-work "more freedom" fantasy will come to an end.
Any thoughts/improvements on the original post?
Fwiw, I'm building a team in South Africa to service Europe based on the exact premise of the article. Culturally similar, timezone, legal structure.
I worked from home as a freelance Japanese-to-English translator from 1986 to 2005. I lived all that time in or near Tokyo, Japan's business and government center where the majority of translation clients were located.
From 1986 to the mid-1990s, being physically located in Tokyo was a definite competitive advantage for me. While I knew some translators who worked remotely even then, having to send and receive manuscripts by fax or mail limited the types of work they could accept. For more complex jobs that required meetings, or for jobs that had reference materials that could not be sent by fax, being able to go to clients' offices allowed me to get enough higher-paying, often time-sensitive work to compensate for the higher costs of living in Tokyo.
Over the course of the 1990s, clients gradually went online and it became possible to receive and deliver more jobs in digital form. Around the year 2000, online translation companies started offering services from India and other low-wage countries, charging a tenth or less compared to what translators located in Japan were charging. The quality wasn't very good at first, but the price difference started to hurt the bottom lines of translators in Japan who did the most generic, commodified work.
By that point, I had a stable set of clients who relied on my experience and my knowledge about their businesses. They couldn't easily send the work to others, and I didn't feel any effect from remote competitors. The rise of remote competition was also not a factor in my decision to quit translation and take a university job in 2005. However, I know that if I try to return to freelance translation after I retire from the university in 2023, I will face a much more competitive environment than I did thirty years ago, living near Tokyo will no longer be an advantage, and it will probably be impossible for me to return to the same income level I used to have.
[1] https://www.macmillandictionary.com/buzzword/entries/anecdat...
[2] https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
The OED would disagree with you there, and is a somewhat more authoritative source.
A search HN comments for "anecdata" [1] yields over 4000 instances
[1] https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
I have been working remote for over 5 years now, but I wouldn't have survived without a lot of luck and years of experience as an intern/entry level employee at an office with some brilliant mentors.
I have tried mentoring in the same vein as those who taught me, but it hasn't caught on as well. I am concerned about how many people entering the workforce fail to reach that superstar threshold because they are missing a few key elements (which may be face-to-face interaction). I am also quickly learning that the high-impact employee does not necessarily make the best mentor.
Even today, I feel like I'm cruising a bit on existing in-person relationships. (I was large remote pre-COVID but I still met a lot of people at in-person events and meetings.
It saves money for businesses exponentially more. The office space, associated utilities, physical security, cleaning, supplies, insurance, etc. are insane amount of savings.
I owned a small "remote business" in the 90's and it allowed me to be competitive with multi-million ventures.
Companies should probably kick in a small office stipend, but the cost / sq foot of suburb vs cost / sq foot downtown is usually pretty huge.
But, I can't complain. While I don't like to pay for it, objectively the cost of the office isn't more than the cost of fuel for the commute and all those expensive lunches at the office.
And my commute is now a couple minutes on bicycle and I can be home any moment, run local errands during the day (impossible when I was an hour away), I no longer need to drive anywhere, etc. Life is better.
A friend worked for a company in Vancouver that rented a building big enough for the 30 person team to work. Before covid they went almost entirely remote, and all 30 people are flown to Vancouver ~8-10 times a year, put up in fancy hotels to do a 4 or 5 day course in the hotel function room.
It's cheaper for the company to pay for all of that than to rent the office space permanently.
That goes for every single field that does remote work - learning, teaching, Knowledge work etc.
But let’s be honest - some people need the motivation of a workplace — and that’s ok!
We are all different. Im somewhere in the middle… love working from home but it’s easy to get distracted with side projects, feeding birds, germinating seeds etc.
I realize when I need to really buckle up, I go in the office for a few weeks and that puts me back on track with the major projects.
I would tell my boss I needed some quiet, would go home, would sit down and solve the problem, and would come back the next day feeling much less frustrated.
For programmers at least “productivity” comes from writing leveragable code, not by working more hours. Watching birds, gardening and generally being relaxed and rested will increase the quality of the code you write. It may even allow you to envision solutions impossible to come up with under the daily grind of commute->stand up->lunch gossip->meetings->commute. I think managers that understand how to develop good software are few and far between.
Productivity aside, your routine sounds awesome and everyone who can should try to achieve something similar without concern for their employer’s productivity. I assure you the concern for well-being is not bi-directional.
"I'm sitting on my porch drinking a beer and watching birds but trust me I'm totally working right now" doesn't take you very far.
Screw the grind culture crap
yes I'm looking for other work...
There are some high level stats that suggest that in aggregate, productivity increased with WFH, though I'm not sure how much of that stemmed from people working in the hours that they previously would have commuted.
Sounds like a business opportunity
Human failings are always a super-large business opportunity.
I don't feel like it is a motivation thing. I was just sick of being home all the time.
I think many people on my team are not doing well mental health wise from being at home so much.
The most miserable people I know are a few software engineers that have been working remote for years making great money. One guy I know works at night because he can. Sleeps to 2pm. Basically, never leaves the house for anything. Seems unable to connect though that being a total shut in is why he is not happy even though he is killing it objectively. Practically hiding from the world in a nice house.
What has been good for my mental health is getting up and actually having to get dressed in the morning. Actually have to get out of the house at a specific time. Seeing people at the office in person. Saying good morning to the security people. Using a fitbit my friend noticed that by 10am they had already done the equivalent of a 20 min walk step wise just going to the office. At home, basically nothing. If you work at home you practically have to do a 90 min walk a day to get enough steps in. Good luck as your conditioning gets worse and worse trying to be happy.
Working from home means living at work. I like my work so mos tlu5fine.
I really enjoy coworking spaces. I don't even if my old one is running anymore but I really want to go back.
They attempt to answer "How will this affect the average tech worker?" ... with ... "In June, Google told rank-and-file employees it would reduce the pay of those who choose to work remotely or move farther from the office." and they then say "Should this worry the most in-demand engineers and product management? Probably not."
They finish with "But in the long term, remote work’s promise is more ambivalent." which seems like about the only real thing we can all agree on. We'll know how this all shakes out in maybe 5 or 10 years?
What was pretty interesting, and something I've never heard before was "some Peloton instructors earned more than $500,000".
It's not really new in that you had doubtless well-paid "personalities" who had workout shows on TV forever. It just stands to reason that with mass broadcast, the money flows to a relatively small number of popular people rather than a large number of fairly modestly paid people teaching small classes in local studios.
Though I suspect that a lot of this current phenomenon is out of necessity rather than preference from the perspective of participants.
Which visa does NZ allow you to live there and work remotely?
https://www.businessinsider.com/google-exec-reportedly-worki...
https://www.forbes.com/sites/siladityaray/2021/08/06/google-...
Larry Page's son was transported by medavac to a hospital there. He's able to stay due to a visa with the requirement of a $7 million investment.
As a European, it is very disheartening to see how many companies espouse "we are now embracing remote work company-wide", which on closer inspection means "California hours +-2h time difference".
In addition to the obvious time zone constraints, I think payroll taxes and such are a major regulatory boundary that you need to cross in addition to having "all your shit together" as one of the top comments puts it.
This can be annoying even across state boundaries, let alone internationally, for smaller companies that aren't already operating in several states. Consider also things like group health insurance, which are often geographically bound (sometimes even to a single city).
It boggles the mind that the biggest companies on Earth are the likes of Instagram instead of a huge company called "Adapt" which takes care of all that between employee and employer as a third party.
Right now, if N companies want to hire in M countries, the total expenditure in HR departments is in the order of O(N*M), when it could (theoretically, ideally) be O(N + M).
Also there are vast diferences in labor law between countries
And I have seen a few companies do that! I would say that this is around 20% of the companies.
The other 80% simply list those jobs as "Remote", so they show up on their job pages under all continents, or at least, under their "outside the US" filters.
Then sometimes it's not mentioned at the top of the job offer, but in the footnotes with the "we hire regardless of disability etc." statements.
All of these things are fine. They're just a far cry from that blog post that the CEO made 10 months into quarantine, talking about how the company will open itself to global remote work.
* EU team (e.g. presales) are not available half the day to answer queries and this creates delays, but also forces people to write good tickets if they want anything done
* Conversely, even senior developer staff get half the day clear of meetings to do deep work or focus on internal meetings / mentoring
* Thankfully this team are mature adults, but I've seen an us and them thing develop between engineering and the rest of the company elsewhere. It's natural when everyone outside engineering is short term incentivised to downplay technical debt and such. If it can happen when everyone is in the same building, I can definitely see how easily it could happen if only engineering are sat together and all the evil product owners are just angry faces on a screen.
Another comment pointed out that shared time zone "remote working mercilessly exposes some of the flaws in the organization." (https://news.ycombinator.com/item?id=28369657)
I'll add that global/fully async remote work is even more merciless, especially on Agile figuring-it-out-as-we-go-along orgs. Communication has to be written and clear enough to avoid back-and-forth, changes are possible on the order of a day, not an hour so planning ahead and evaluating critical paths is more important, and everyone has to be able to pick up and put down work that's become blocked by someone on the other side of the planet. It's a tall order, but I'd like to think that the benefits are worth it for both individual and company.
Working for a completely on-site company located in two buildings within 10 minutes' walking distance, it was still sometimes impossible to get hold of some people, or understand their attempts to communicate without going back-and-forth 3-4 times.
I think the company I'm thinking of is simply also a "winner of remote work" because it already managed to survive despite massive mismanagement and miscommunication before remote work.
Is that really the case? There is some evidence that globalisation had plateaued over the last decade or so. I can't find any recent evidence one way or the other.
https://ourworldindata.org/grapher/world-trade-exports-const...
And that's going to be in US major cities.
Anecdote. I am in process of looking for a full time remote since my mega boss decided that hybrid is good enough for me and no amount of paperwork could convince her otherwise. Right now I am remote until delta dies off or HR changes its mind.
I told no to recruiter 2 weeks ago, because the job was not remote. Just today it seems the company received a lot of nos, because I got a very similar job description and it is now remote.
Now.. the companies are trying to make remote less appealing ( and trying to argue that you should be paid less ), but, quite frankly, remote is worth a lot to me now. You would think smart companies would want to use it to their advantage.
Instead, most of the stories I hear from my social circle goes smth like this 'old guard wants us back in office'.
Think about who sits on the board for a major company… It’s owners and executives from commercial real estate firms. There is a ton of money around commercial real estate, so letting it all just collapse (or losing even 10% of that market) is billions of dollars shifted around the economy.
Most “normal” people who are working from home have little interest in commercial property (aside from a REIT, maybe), so they don’t care at all if the office buildings go empty.
It’s not hard to imagine the board rooms having these discussions and being pushed toward getting people back in the office. And it’s evident they are pushing the propaganda machine with effectiveness studies and articles about how remote work doesn’t work.
And once an organization gets to a certain size it just makes sense to run and buy your own properties.
I should have written “Executives with interest in commercial real estate”. From heads of consulting firms to executives with commercial real estate in their own organizations, nearly all of them have a strong interest in commercial real estate doing well. I would expect most, if not all large companies to have exposure to commercial real estate and many make a lot of money from building and investing in commercial real estate.
But the people that have the strongest interest in this doing well are the people who are in the boardroom. I really think there are few similar issues where the interest of the board and the interest of employees are opposed (many workers want to stay home, many board members want them back in the office).
Take Google - Robin L. Washington sits on Google’s board and also Honeywell’s. Honeywell has $5 BN on their books in “Property, plant, and equipment”. Not sure how much of that is office buildings vs. manufacturing, but still even 10% is $500 M.
It’s not like it’s some major conspiracy, it’s just that boards are small, you can make hops between large companies, and it only takes a small push to make all large corporations lean toward return to work. For most companies with exposure to real estate it makes sense. Most others’ (I’d argue) have board members with an interest in propping up commercial real estate. Most common people do not have a direct interest, but will feel pain if the commercial real estate market significantly changes.
If remote is itself valuable to you then it would stand that companies could get away with offering a lower salary for remote work, at least in your case.
Given how much I've seen it work, and how bad the tech talent war is right now, I'm pretty confident there will be lots of remote only options in 6-12 months when upper managers finally wrap their heads around the fact that this is what they have to do to find and hold top talent now. At the competitive companies, upper execs/board members will start dropping middle managers who can't hack it when they see their attrition numbers in the losing part of the spread.
It is just that remote working mercilessly exposes some of the flaws in the organization.
For example, people who look for a way to slack off now can do this much easier. The problem really is selecting right personnel and motivating them. If you try to treat the problem with a stick it most likely will fail with remote people.
By contrast, one of the (un?)happy accidents of remote life is that it tends to cause ineffective organization and communication styles to also be unenjoyable.
Swim lanes isn't agile per se, it's just business communicating their priorities and assigning it to development. I remember when agile came out, it was great from the development point of view. It was almost immediately perverted by consultants trying to make a buck trying to sell scrum as a panacea to all development costs and overruns. There's an awful lot of snake oil salesmen in tech. Other than that, I agree with everything you said.
For starters, I would argue that, "The most efficient and effective method of conveying information to and within a development team is face-to-face conversation," has proven, in the fullness of time, to be an oversimplification.
More importantly, the Agile Manifesto not saying something two decades ago does not mean that it has no place in contemporary agile software development. We've had 20 years' worth of time to learn since then. It would be a shame if we hadn't.
To that end, I do think that active orchestration - and, for that matter, written communication - is critical to being really agile at any sort of scale. It doesn't necessarily need to be done using swim lanes, but they do happen to be a nice mental model (and visual mnemonic) for keeping track of real-world phenomena such as varying quality of service obligations.
But I also think that it makes sense to leave them out of any concrete definition of what it means to be agile. Not only is there more than one way to satisfy that need, there's also no guarantee that every team will have that need.
"Do you have your shit together?"
Seriously. This could avoid so much heartache.
It’s a very reasonable question to ask during an interview.
Whereas a Pro Bowl quarterback or A-list movie star is worth maybe $100s of millions to a team or studio relative to players/actors who are "only" very competent. Coders are somewhere in between.
Productivity (or impact of code written) though, it might as well be closer to the power law distribution
In Software Development, you can "get by" with an effort between 2-6 (where 5 is an average worker) or you can "excel" with an effort of 9-10, but putting in a 7-8 just stops being be worthwhile after a few years. Compare that to a local business owner, where greater hustle always appears commensurate to a greater reward.
There's a reason that tradespeople get paid what they do. (and IMO, it is still very underpaid)
Electricians have to work in less than desirable conditions (dusty attics, outdoors, etc). Most of the material is your responsibility.
Accidents can and do happen. The days where you are less than 100% but you would be able to WFH don't exist.
Think it's annoying to plug a network cable under your desk? It's like that but 7hrs per day or more.
I hate that this is true, and am glad I found a way to make a living that avoids both, but congratulations on getting to the core of the matter with great clarity.
Despite the somewhat unkind analogy, the distributions kind of line up and it makes sense to me why the top 10% of workers on platforms like Outschool or whatever earn significantly more. In many cases in life there is a group of people/things/songs/movies etc. that are significantly better than the rest in their respective category (usually about 10%), and the rest fall into a category of their own. idk, this is entirely intuitive, but I'd say it makes sense to me that people, and their ability to do some task well, would follow the same distribution.
That is not the case for programmers, consultants and contractors (or more precisely, the Internet already had that effect for website/app/SaaS builders without need for remote work).
What will happen for them is that employees from poor countries and outside main cities will be better able to participate, increasing work offer, but also it will be easier for businesses outside main cities to find workers, increasing work demand.
[0] WIRED Magazine (2004) "The Long Tail" https://archive.ph/OuxGP
[1] https://en.wikipedia.org/wiki/Long_tail#The_longer_tail_over...
Human society has had a lot of versions of "how things work" in regards to obtaining and distributing resources. As some of the work force transitions from physical, in-person employment (trading labor for pay) to increasingly virtual employment, some things are de-coupled, like high "cost of living" areas being less strongly related to "high paying employment centers."
But for employees, it's just an amplification of the previous trend towards inequality in employment that was already happening.
Another way to think about this is specialization. A few people can specialize in certain remote tasks - obviously the examples of education (for fitness, academia, etc.) - because creation is not tied to consumption, especially for digital goods and services.
The distribution of employment has always shifted over time as productivity has increased for certain types of work, and then new methods of employment has popped up as technology and entertainment and culture evolved. In a free country a couple hundred years ago, many people might work their own farm and largely sustain themselves off that work. But today a tiny slice of the population manages massive scale farms. What does everyone else do? Industries have evolved from nothing - large scale housing, transportation, etc.
To try to wrap this up, this article isn't going far enough. The goal might be to predict the future. If everything we know we need and want can be produced by a shrinking work force, what will the rest of the population do to earn their keep? Will some kind of redistribution scheme of resources arise, like socialism or universal basic income?
However the increased productivity also applies to extraction of ressources and destruction of ecosystems. On a planet with limited ressources we need to do the exact opposite, imho. That is decrease the amount of work done in extractive and destructive labour and channel all following and already existing productivity gains into sustainable work.
This will definitely need serious redistribution schemes, as well as lots of regulation.
First of all, there's no transition from trading labor for pay. That remains in place ... because capital.
Secondly, the coupling or decoupling is mostly a short-term choice made mostly by capital. We've already seen some companies signalling their intention to pay people less if they live outside the local area and work remote. I see no reason to expect that the state of this coupling will change to anything other than what-works-best-for-capital.
It's the flip side of facing greater competition due to producers having greater reach; whereas in the past a highly specialized provider, like a yoga-kung-fu fusion aerobics instructor, could only find, let's say, three customers, due to the addressable market being limited to people living in their city, remote service could allow them to find the several hundred potential clients for this service scattered across the world.
The New York Times - "Feel Bad About Everything, Always"
Remote work is amazing, net on net it vastly improves lives, reduces commute time / traffic / car pollution, reverses the decades long trend of economic activity centralizing in a few boom cities, and I believe will reduce inequality longterm as workers will be able to get good, high-paying jobs no matter where they live.
This would be a bad thing for them, if the New York Times sold the news, which I don't think they do any more. The New York Times instead sells brand image to people. They sell a series of a talking points, ideas, and topics that show you are in the in group and on the right side. So that when someone brings up remote work, you can show how empathetic you are, and how worldly you are and say "Remote work is fine but really it shows how the gains are captured by the few and not the many, I read in the Times that... ".
Boom cities were never the problem. The problem is commuting, which stems from a lack of housing.
Forcing everyone out of the cities creates a worse set of problems. It means more wasteful roads to nowhere and doubling down on our third-world transportation infrastructure. It means more clearing of wild land, one of the best resources the US has if you've done any traveling at all. It means more boom-bust bedroom communities and vacant strip malls. It means more culturally insulated communities and Trump-like politicians.
I think you'll find that a great many people don't want to live in the denser areas where offices often tend to be. You can scold about that all you want, but you could make cities arbitrarily dense and a lot of people, indeed more, wouldn't want to live in them if they weren't making a commuting tradeoff because of work.
My main point was that arguing for remote work/sprawl was not a ecologically-friendly argument. Sure, lots of people want to live in the middle of nowhere. But the negative externalities, looking to the future, are many, and they are something to consider when trying to praise WFH as a potential solution for anything.
Yes, everyone that reads this forum supports WFH because they benefit directly from it. From a birds-eye view though, looking at urban development and the cultural decline of isolated populations in the US, it looks like it could be a disaster.
You can make the inside of your box as amazing as you can imagine and some (not small) segment of people will opt to live where the sun can shine into their yard.
This is of course much less true in industries like finance.
Or Fitzrovia
Nevermind the fact that only a fraction of all jobs can be meaningfully done remotely, and a majority of employees wouldn't take the option if it was offered anyway.
You can argue that remote work drives demand for larger spaces, but again this comes down to the housing shortage. There's no reason that more 2 and 3 bedroom apartments couldn't be built if taller buildings were actually allowed to be built in the cities where demand for housing is high.
The issue is that we have allowed our built environment to become too centralized. In that sense the Boom Cities ARE the problem. Instead of one strip mall a dozen corner stores on an old school, "It's a wonderful life" small town main streets we have Times Square, and a bunch of overbuilt "new urbanist" attempts to mimic the magic that took 200 years to build.
Leon Krier has made this point visually here. https://pbs.twimg.com/media/EUX70P7UYAEchHS.jpg:large
I don't understand the reasoning behind this, and I've seen it being used again and again. Employees are compensated on the work they provide during work hours, and only rarely do companies provide compensation to specifically accommodate for commutes, usually done as an incentive for people with costly commutes.
The concern most companies have has to be more about the real estate play, and how the offices they have paid for or are renting won't be getting as much use. Other than that, in terms of energy usage, heating/cooling, etc., I would imagine the cost savings of having people work remotely are considerable.
If anything, as I see it, work from home employees should be compensated for the costs of working from home, which include higher utility expenses, or even office furniture to enable their work — some companies have paid stipends for home office setups, for example.
I think, long term, companies may have to rethink how they set up their offices so not as much cost is sunk in real estate, so much so that they risk penalizing employees who would be saving them money otherwise, if it weren't for the existing office-centric solution.
They do it because if you won't accept a 20% cut to work out in the sticks then there are plenty of other good people who will.
It's got nothing to do with the length of your commute or the cost of unused offices or even the value you provide (as long as that covers your wages).
They can do this for exactly the same reason they only need to pay a cleaner minimum wage. That is there is more than enough supply to meet the demand.
So the options are:
1. Convince all of the other good people that they can and should demand more.
2. Convince your bosses that you are indispensable.
You'd have much higher costs around compliance and taxation, which represent an ongoing expense since laws are always changing and people moving. That probably works out after a few employees in any given state. Companies also lose money by flying everyone in once or twice a year. Now that I think about it, I wouldn't mind seeing some math on the subject.
Sample size of 1 here: Google approved my working remotely in a small town outside a major city at the same compensation as working in the office in that major city. So no pay cut.
I think there's a game of telephone going on with the facts in these articles:
"could see different changes in pay" -> could lose money" -> "would reduce pay"
Industry-average compensation is primarily a function of supply and demand. Remote work increases labor supply and decreases costs of labor. Both of these factors will cause compensation to go down. How employers justify pay decreases is largely besides the point, imo.
To echo the statement from the other Googler who posted, this quote from the article is simply not true. It implies that if any employee chooses permanent WFH, you get a pay cut.
If you follow the link [1] from the article, you'll see the following reasons:
* Google supplied an online calculator to see how their possible relocation would affect their pay
* Pay rates are defined by metropolitan statistical areas (MSA)
* Google says "Our compensation packages have always been determined by location, and we always pay at the top of the local market based on where an employee works from,"
So, if you choose to WFH permanently and you commute far enough to live in a different MSA than your office, then you might see a paycut.
[1] https://www.reuters.com/world/the-great-reboot/pay-cut-googl...
2. Move to superfund site nearest NYC or FS
3. Profit!
Engineering needs product management. This isn't cheap or easy to do when you're offshoring for cost.
One, a lot of what makes India and Pakistan work, or Slovakia, are that there are class natives who can navigate the vetting process. This is huge and there are tons of Indians or Chinese in the valley who can fill this role but who are themselves demonstrated top-tier talent, not just people selling outsourced teams of unknown quality.
Second, English. English is simply an absolute requirement and one of the things that absolutely kills non-US teams is a lack of English skills. Chinese teams have a lot of problems here and it gets even worse elsewhere. Eastern European teams (Poland, Estonia, Solvakia, ...) tend to have competent technical leads (not salesguys) with solid english skills even if the average is zero. I deal with a ton of people who have marginal English skills, but there's a very steep ramp between Bangalore, Chennai, ... and then other options.
Third, and importantly, the populations are large enough that they can provide outsourced work at scale - I'm not talking huge numbers, I'm talking managing a team size of 30-40 people even with departures, etc.
Fourth, there's an honest question of demonstrated competence (or demonstrated good-enough mediocrity, more often than not).
Fifth, there's work culture. I know Indian, Chinese, and eastern european work culture. I know what to expect and there's basically been a selection process at work selecting outsourcing destinations based on what actually works.
I'm probably starting something in a few months. I'd much rather outsource to a common time zone with Pacific or at least eastern time. I wish I could find a way.
If it helps, I can recommend you to take a look at https://nearsoft.com/ it’s a Mexican company, I personally know very talented people working there. They have high standards during interviews, they seem to really care about who they hire (disclaimer, I don’t work there).
Also, even though Costa Rica is a small country they have an interesting growing IT industry, if you haven’t already, you should check it out. I’ve met several great Costa Rican developers.
I hope you find what you’re looking for! :)
There will be exceptions, especially among the most skilled and experienced HN readers. But I am on calls all day with engineers and managers whose salaries may vary by six figures depending largely on their location.
When the results of paying far less are acceptable to companies, companies will pay less and less.
Remote work within borders is one thing, but remote work from different continents is an entirely different beast.
Not to mention the sheer difference in labour-related laws and conventions across the world and how little recourse you may have if - let's say - your employee decides to take your source code with them and resell. Or take the idea and start a product themselves. Or anything similar that you could very easily sue locally. How much trouble would you go to sue? Translate and certificate every document? Comply with local laws regarding representation? Can you even sue?
You may think these are extreme examples, and yes it all tends to work out in general, but even with local employees people sometimes get burn so you need to take these into account when jumping into something uncertain. It's becoming more common for sure but there are risks and they are not null.
Large companies like NVIDIA/Intel/Microsoft have tried to do it with mixed results. In particular your savings rarely exceed 50%.
But coordinating teams across anything more than a 4-ish hour difference is a total pain
Those people are already in demand and oversubscribed, so the US-based engineers are still in demand.
Yes, companies would love to pay less, but at the high end it is already a world market for talent.
Great engineers are human members of a team, and there's more to a team member than their LeetCode score (seriously?) and/or how many GitHub stars they've obtained.
Just some examples off the top of my head:
If you're building products to target US-based consumers, you don't need to provide as much contextual information to a US-based engineer. They will have a stronger intuitive understanding of the product, and there's a better chance that they'll know when it's appropriate to push back and question something. There's a reduced cognitive load in communicating with them. And of course, there's a better chance you're going to enjoy spending hours working with them.
Also I find your answer pretty condescending towards folks overseas, although that's your opinion. In my team at Google, we have people from all over the world, and they are amazing. Don't see how they don't have the "required qualifications" you are referring to.
I wouldn't say it's an overarching concern that would justify turning away overseas (disclaimer: not located in US myself) talent, but can't say he's totally wrong in specific contexts..
Also it wasn’t even slightly condescending of you to declare that US-based engineers are overpaid and ask HN for validation. It was just a brave stance taken by a bold intellectual who knows better than everyone else.
Those equally or more qualified overseas people working for little were in short supply. Why would they work for you for pennies when they could move to Silicon Valley, make tons more, and have potential for much, much more?
With remote work, what makes you think that the market will be inefficient? The overseas equally or more qualified will demand more money and look for more opportunities.
These companies that adjust pay based on location remind me of the wage fixing scheme led by Steve Jobs. Once Mark Zuckerberg refused to play along, compensation exploded. Companies that pay the best for remote workers will have their pick of the best.
Who says all talented engineers overseas can come to the US? There is a huge amount of QA companies in Ukraine that contract their service to the west, for example, can they come to the US? I doubt it. Overseas workers don't get the chance to make demands, US companies have leverage over them. Because there are way more talented engineers than high paying jobs. I have you seen how much people get paid in toptal, and other online contractor companies?
Examples:
former boss's family got out of Russia, had guns pointed at them on the way to the airport
coworker who got an H1-B, was desperate to get out of Russia, we found him because a product he was working on was exceptional
several coworkers from other countries that were math or computer science olympiads
btw these people end up in American colleges as undergrads or grads
Over 10 years ago, I had a coworker who remarked that all her classmates who stayed in China had become rich. She said that it was because it was an open field.
All you had to do was take a proven American concept and apply it to China. Since there was no existing infrastructure or competition, you had the whole market to yourself.
This wasn't just applicable to tech. People were doing things like opening coffee shops (queue the Luckin Coffee fraud 10 years later).
Also, look at Spotify, JetBrains, WhatsApp, and Shopify.
If they could, they would [0].
This is insanely wrong. What makes you think that?