Gitlab and remote work
about.gitlab.com
about.gitlab.com
I spent many years working at companies where I was underpaid relative to peers who went to the office, but I got paid the same whether I was currently residing in Prague, Santiago, or Kansas City, and that was a much fairer trade-off than getting pay-cut if you relocate to a lower cost of living area, and I have no doubt that the reverse is not true (they don't increase pay because you move to a HCOL).
"But you would make so much more than your neighbors!". Fuck off with that noise. I don't care what my neighbors make, I care what the company is earning from my labor and getting my fair share. I have no problem extorting more from a company that has no problem extorting more from me.
You also won't see this for senior management. As a VP/C-level, I've never had a potential employer put pressure on salary during a negotiation because of my location (though it's always been domestic). It's never even come up besides relocation discussions.
This is absolutely true and it's because executives usually have spent at least some amount of time doing "sales" type roles where they learn what value selling is. I always do value selling during my salary negotiations, and I too pretty much concern myself only with how much I bring to the table and what a fair cut of that for myself is. My location has absolutely nothing to do with that, and I've delivered a ton of value in my career from far more remote locations than most remote workers find themselves in.
or because there are two orders of magnitude fewer VPs/C-levels than line workers. an extra +100k for a single unicorn employee is easier to justify than +20k comp x 100 replaceable employees
Otherwise, after a while, maybe others in the company would say:
The other execs don't make more than this:... Why should we pay you so much?
Fast forward 10 years, a quarter of them sold their house and basically retired in my area. Yay.
You don't get paid based on company revenue, you get paid based on the lowest amount you (or someone you're competing with) are willing to agree to sell your labour for. That amount is going to be lower if your cost of living is lower. People earning less if they work remotely in Podunk, Idaho compared to SF is no different from someone earning less in Bangladesh than in Italy even if they do the same job.
To me, this would instead be an argument that "since engineers are equal, might as well get the cheapest one". Which is an argument I can understand, even if I don't agree.
But this would mean that your compensation would be mostly fixed, and you'd mostly look for people living in cheaper places, since this should give you a better bang for your buck. Which would mean, basically, that you'd be looking to pay en engineer in San Francisco the same as one living in a tent in Africa. If they're the same, why would you pay 100x more for the one in SF?
"Among equal engineers, get the cheapest one"
An SVP is pulling down a base of $300-600k, and stock comp (option grants & RSU's) may be doubling or even tripling that but very few are getting 10-100x base. Maybe C-levels, but even then I'd wager more people can fit in a Boeing 777 than are seeing packages like that.
They also look at salaries at non-public startups where some part of the package is denominated in the stock options price (which may or may not be fiction).
If you once got to work in 30 because there was absolutely no traffic, many people will from then on say it takes "30 minutes" to get to work, and be perpetually late.
With crazy stock valuations and growth - some people do be getting big stacks. They might’ve gotten a $300k + 600k offer but then it turns into $300k + 3000k because stock went up 5x. Happens a lot here.
> $300k + 3000k
No one is getting millions of options/shares outside of founders and investors. A mid-stage growth start-up might give a few hundred thousand shares to a non-founding C-level exec, or a pre-IPO CFO taking point on going public might get close.
Outside of nepotism and incredibly rare skill sets aligned with growth initiatives, these deals only exist in our fantasies.
This just feels naive to me. You aren't being paid based on what your labor is earning your company. That number is totally irrelevant in a world in which businesses can run on VC money instead of actual revenue. You are paid based of both yours and your employers next best alternative. The reason people in high cost of living areas have traditionally had higher salaries is because there are more jobs in high cost of living areas and therefore more alternatives for potential employees. It is easier for an engineer in the Bay Area to get a competitive offer than it is for an engineer in Akron, Ohio. That is why companies in Akron pay less, there are fewer employers there looking to hire developers.
While I understand all the arguments about fairness, we can't ignore that all these companies are purely responding to capitalist incentives. If we demand they pay employees the same regardless of location, the wage rate they pay will drop. This is because there are more developers living in low cost of living areas willing to work for that set price than in high cost of living areas. Why would a tech company hire a developer in San Francisco for $300k when they can get a similar one for $100k in Akron? That company isn't suddenly going to be generous and decide that the employee in Akron deserves $300k too. They are going to decide that cost of living shouldn't matter and maybe pay everyone $110k. Sure, that improves the situation for people living in Akron, but does it improve the situation for developers as a whole?
I've managed P&L at multiple companies. Salaries are inevitably influenced by cash flow projections and revenues, and are absolutely aligned in multiple dimensions to revenues.
> cost of living shouldn't matter and maybe pay everyone $110k
No, they're going to pay whatever their margins can tolerate while competing for labor. If Google can manage the salaries they have with staff living mostly in high cost-of-living cities, so they can also support those margins with staff living anywhere else in the world.
Why is it only capitalism when the company is greedy?
How mature were those companies? Did they have investors willing to accept extended periods of time without profit like many VC and Wall Street investors have come to accept from many tech companies? Did increases in cash flow or revenue lead to across the board raises? Or did cash flow and revenue exist purely as a cap on salaries?
>No, they're going to pay whatever their margins can tolerate while competing for labor. If Google can manage the salaries they have with staff living mostly in high cost-of-living cities, so they can also support those margins with staff living anywhere else in the world.
Yes, Google can support those margins, but why would they? Why would Google pay a developer a dollar more than they need to? If they can get the same work out of employees in low cost of living areas, they will expect to pay all employees low cost of living salaries.
>Why is it only capitalism when the company is greedy?
I'm not sure what you mean by this. There was no positive value judgement on my use of the word "capitalism". I was not praising companies for this behavior. I was making a value neutral observation on their behavior. Don't take my observation of behavior as and endorsement of that behavior.
Early stage to public, all VC-backed.
> Did increases in cash flow or revenue lead to across the board raises?
That doesn't happen anywhere, unless a board member recommends it or you have a very generous CEO (like Gravity Payments). Either an employee asks for a raise, or a manager fights for one using new hires/open req salaries as negotiating leverage. Turnover is part of life, and if no one is fighting for you then you're expected to fight for yourself.
> Or did cash flow and revenue exist purely as a cap on salaries?
G&A is a huge chunk of expenses for most companies, and after a few years of operating you'll have reasonable historical data combined with future financial projections to figure out where you want that G&A % to hover around. This is what determines salary caps, as your leadership team juggles figuring out whom they need to hire to hit those projections and how much they can pay in the given market to find the talent they need/want.
For an e-comm business that might be 30-35% of total expenses. For SaaS, could be as high as 70%.
So your leadership agrees on some growth plan, and the CEO hits the button on hiring X new heads with a combined Z salary cap. What ends up happening is that you max out Z by X-N new hires, and the CEO has to decide to spend more to reach X hires or tell teams to make due with the headcount they have while reminding them to "hire faster next time".
Over a long enough period of time, the executive and finance teams will implicitly agree on some tolerance that G&A needs to stay within, and the company will be managed and decisions will be made to make sure those commitments are made. We've probably all seen this as sudden hiring freezes or lay-offs, when either current results or projections show that some target isn't going to be met but that tweaking these other numbers (headcount, payroll) the company can keep the first number (costs as % of revenues) consistent.
Over an even longer period of times, those salary bands will ossify into comp levels like "SDE 5" or some-such and this becomes the aggregate in which salary is managed.
So for a company like Google that has its finances literally down to a science, which is already operating multi-year roadmaps with high salaries baked into every assumption and model and even the stock price, would not want to rock the boat of missing those targets by tweaking something that could cause more harm than good. It's not worth it to them.
Keep in mind that Google's margin are still healthy even after salaries have skyrocketed since they were discovered colluding with other companies to artificially keep salaries low.
Paying everyone the same regardless of their location means that people in the highest cost areas need to compete on salary with people in the lowest cost areas. People in the low cost locations outnumber people in the high cost areas so it will be a race to the bottom. Google isn't going to pay everyone Bay Area salaries. They will pay everyone as little as possible to still reach their target headcount/production.
If you think that your work has more value than you are being paid, why don't you just stop working for those companies and start working for yourself?
The difference is that without remote opportunities people are constrained to their local area so companies can indeed pay, say, an engineer in India much less than one in Silicon Valley although output for company may be very similar.
That's not leading. That's fleeing with your tail between your legs.
I guess I'm showing some assumptions about labor being a free market, but isn't your salary by definition acceptable to both you and the employer?
Either way I think Gitlab will be paying different taxes and other fees depending on where the employee is registered, so IMO it kinda comes down to the message they want to send to their employees.
They could attract a more good people if they paid globally consistent wages.
I live in New Zealand - a gallon of petrol is $7.241 USD. A macbook air m2 is $1680.70 USD. Gitlab would not pay someone in NZ more than someone in the US because their cost of living is higher.
If tomorrow they declared they "need" to pay their employees 2x more to hire "A players" and get an edge on their competitors, we probably would have to take their word for it.
Of course I imagine that you can make up a number and say "I'll pay my employees X because I have money right now and this is what they deserve" but it doesn't sound like a good financial decision for a business.
You can also set a range (let’s say “top payer”), and find no one that matches your criteria in that range. You’ll either choose to settle for lower requirements, or increase the pay to get people who match your requirements.
The above all sound logic, but in the end it’s a made up number for subjective requirements, so you might completely be paying any arbitrary number to satisfy your criteria.
Especially if (as myself and many others) we don't live in one place and travel between different countries with drastically different local income levels.
But what, exactly, is "the market of the candidate"?
You seem to be claiming that for these remote employers, "the market" is their whole nation, or even the entire world... So why wouldn't that be "the market" for their remote employees too?
Yes, you should be paid regarding the value you bring BUT by paying me fairly for my market, they can hire more people, especially in emerging countries.
You build less real estate equity. And there is less room for saving cash.
In general, living in very expensive cities is great for saving cash if your salary is proportionally higher. Saving 10% of a median Lisbon salary is a lot less than 10% of a median SF salary.
Every company should be handbook-driven.
EDIT: More on topic, I did really enjoy the MR based technical interview way more than the common coding challenge.
They asked me to clone a rather large repo as part of the interview, I cloned it but it was slow, the dude just blamed it all on my internet and my geographic location. Like kept going on about it through the awkward slow clone. I think I wrapped it up early.
I ws cloning other repos of similar size and much faster speeds that day.
What does my org use it for? A git repository to which we can push and pull, CI, and code review. I constantly feel like I’m missing a party of awesome features and stuff and I feel that way because what Gitlab does for me compared with the perception it projects into the world seem different by several orders of magnitude. What are all these amazing features they are building, which require such a huge team, that I’m missing? I don’t want ACLs. I don’t need per project visibility. We already have task tracking and a wiki. Will Gitlab offer to run my payroll, when I already have software to do that? Is there a calendar app and have they built their own date selector widgets? Those are shark jumping moments for any project so I hope it’s not that bad.
Gitlab feels a bit like a microwave oven that has a popcorn mode, alarm clock, and built in calculator when all I want is X hundred watts for Y seconds.
Ps: poking around their sales site, Gitlab is going after Jira, I guess. Oof.
Capitalism encourages growth. It's considered weird to just stop building things when you've built everything you initially wanted to.
My paid subscription ends later this month and it isn't being renewed; I'm reverting to the "free" subscription. I'm prefer not to. I would like to pay them for the service they are providing, but like many SaaS companies they have created a pricing structure that does not have anything in between "free" and "very expensive". GitLab might be value for money if you use every bell and whistle in the tier you pay for, but if you don't the value proposition does not seem to be there.
I understand that I'm likely not one of the corporate "whales" they are after, but I would like to think that there would have been a solid, if less profitable, business in providing services to the smaller outfits as well. They have lost me as a customer, and not because I want to be cheap, but because I can't justify the value of their updated pricing model. I would even pay for some of the open source projects I host there because I don't like to be a freeloader, but again the gap between "free" and the first paid tier is simply too great.
[0] https://remotewide.co/ [1] https://news.ycombinator.com/item?id=31225138
Ok now I am more curious. I looked at another company "Expensify" [1]. They actually want you to ideally relocate to one of their office locations :). So again, not fully remote anywhere in the world. I think employers say it casually but in practice, it is extremely difficult.
Why would I pay the same salary to a good developer in NYC vs India/Thailand. If that's the case, why would I hire from a totally different timezone and not to mention add legal, HR and compliance issues.
Outside of contracting and business-to-business deals, I think we're still in a world where it's hard to legally employ people in countries where you don't have a legal presence (outside of cases where that has been explicitly agreed-upon, like EU).
Something as basic as tax withholding can be literally impossible without creating a subsidiary in that country.
Looking at remotewide.co, they don't say anything about having to accept applicants from all over the world. That is, think SF vs Idaho, not SF vs Siberia.
Out of curiosity, what makes you think Expensify wants you to relocate?
Relocation was not required or suggested when I interviewed with them last year. Their current job ad shows that they support working from anywhere: "Our employees work from all over the world" and "we spend a month abroad working from a remote location as a team".
I hypothesize that the part about visa sponsorship / relocation assistance might give the wrong impression:
> if you're looking for a change of scene we offer visa sponsorship and relocation assistance to join us at one of our rad locations...
Surely, there has to be some sufficiently motivated and intelligent person born in Thailand who is able to do the work you require. Have you hired any of them?
Also happy to answer any other questions you have. And again, if anyone reading this is interested, please take a look at our open roles [0]. This is one of many, many things which makes the company great [1].
[0] https://we.are.expensify.com/#workwithus [1] https://we.are.expensify.com/benefits-perks
> The salary for candidates matched as Programmer is $165,410. The salary for candidates matched as Senior Programmer is $197,819. Irrespective of where in the world you live.
Also, check out remotewide.co for a list of remote companies with location independent pay. I think this is exactly what you're looking for.
They underpay in general which is why their product is buggy
I understand the sentiment but I am not convinced that underpay is the cause of buggyness. They compete with a behemoth and it is quite a feat to stay in the game in spite of having a fraction of resources at their disposal compared to thier completion.
* "This person does the exact same work, obviously they need to be paid 30% more than you because they could afford to move close to an expensive city before applying" doesn't sound exactly fair
* "We'll value your work less financially if you move somewhere cheaper (not the other way around though)" isn't particularly great
* The message(s) of "You can work from everywhere, people can move back to rural places and reverse demographic drain from there, you can be close to nature, ..." seem a bit hollow when paired with "oh, and if you actually do any of those great things we'll cut your salary"
* At least when it was public, their salary calculator had some hilarious blind spots (one would hope they have a better process when it actually comes down to it)
For the other perspective, they've written about why they do it: https://about.gitlab.com/handbook/total-rewards/compensation..., https://about.gitlab.com/blog/2019/02/28/why-we-pay-local-ra...
Imagine spending so much time and effort to justify paying your employees less. It makes financial sense for a public company with no soul, but I feel bad for gitlab employees.
but with a rental-price index for local-ish area instead of trying to capture that in their regions? or total flat?!
Thank you, I was thinking I imagined that that existed.
Backpedaling on transparency is the antithesis of leadership.
Is there a word for that? Sabotage? Maybe too dramatic, but if we're going to toss around terms like "world leader" maybe it's not.
The problem is that when I saw their compensation tables for Mexico, their offer was going to cut my salary by about 30% of what I was actually earning (I think it was about $70k USD annual at most, I cannot find the calculator now), in another US company with an office in my hometown. Instead, I went to another US company which is also remote, and got a pay bump to $140,000 USD, working from my country.
I am not asking to get paid in FAANG Valley salaries ($400k+) but even paying me 50%-60% of what they pay to someoneone in the US makes a win-win situation IMHO.
Although I recent interviewed for a place (the whole gambit) and their offer didn't even match my salary, let alone total comp. And I was very clear. They blamed their "salary bands."
Just don't call yourself a world leader.
Gitlab might not be a world leader in salaries, but they might very well be a world leader in providing the best remote work environment to their employees.
Either you don't adjust the pay when they move because you are already paying everyone an equal salary. Or you adjust it and pay everyone a local salary.
Gitlab does the latter.
I totally agree. But kirbypineapple's point was about someone's salary not being cut when they move. That's much less interesting than someone in Thailand getting the Bay Area salary when they're hired.
If Kraken pays the same salary for a role regardless of location when they're hiring then that's awesome. I would find that incredibly surprising though, if only because advertising a role on 50* the typical local salary would make hiring really hard because you'd be swamped with low quality applications.
That's as flimsy a strawman as you could find.
(not saying GL are, there could be other unrelated things precluding it)
I worked at a small company that paid me a lot, gave me free stuff, perks etc. It doesn’t mean they’re a world leader in remote work. It just means they offer those things.
The point is — they are not a world leader in remote work. They are a tech company with perks and this is good marketing for them to convince people like you otherwise.
Not sure how I reply to the comment below by lucideer, I guess HN has a limit on children?
Anywho, this is for him, not you :)
Isn't the burden of proof on the one making the claim?
I have yet to see a reasonable case for why they should be called a global leader when they treat their workers differently for the same output.
Inequality is never going to be associated with a leader in my mind. Maybe from a c-level suit perspective they seem like leaders because they are getting away with making more money at the expense of the people building the product.
Yes. It is.
> I have yet to see a reasonable case for why they should be called a global leader when they treat their workers differently for the same output.
My point was no-one has made that claim (nor any similar positive claim - your rephrasing uses weasel words* to bias the interpretation)
The claim being made is as follows: "paying workers geo-adjusted wages precludes a company from being a global leader in remote work".
Noone has claimed that geo-adjusted wages do make them a leader, nor that GL even is a leader. Only one commenter has made a claim: that is that geo-adjusted wages preclude leadership.
* Aside to explain my comment on weasel words: paying the same wage could be as easily interpreted "treating workers differently" given spending power is actually a product of wage / cost-of-living ratio; the value of money is geographically variable
That's just a counter-claim; a denial of the original claim, which was Gitlab's "We are a global leader".
With quite a lot of people saying"No, your behaviour is by definition not that of a leader", I'd say the burden of proof still lies squarely on Gitlab's shoulders: They made a rather bold claim, they get to show that it isn't BS.
Nobody here is "convinced by their marketing" or has even mentioned they believe GLs claim. They're only asking for an explanation of your metric: that location based pay grades preclude leadership in remote working. I have yet to see any reasonable case for why this should be?
Unless it's not actually the same work, and location affects work. It does at least affect gross pay in any case, I suppose.
Because they probably want someone from the area working in the company. If they pay a flat rate globally, they only have to pay average or lower and get great people in LCOL areas. But then you have a company with no people in CA or NY, which means you dont have contact with local trends or contacts in the big tech companies.
Quality of talent means not only intelligence and skill but also people who have spent years working on the specific thing you are building (hardware/firmware, AI, at scale codebases or services).
If you assume that timezone matter and relevant experience working in large orgs is important, the Bay Area premium will continue for the foreseeable future.
Scale means you can hire 100-200 talented IC's within a year that meet the quality of talent criteria and have experience working and getting things done in larger orgs, the ability to do so also commands a premium.
Only a few other places in the USA have this scale, i.e New York and Seattle.
Coinbase the company I work for is fully remote and does salary bands by location. Within the USA, Seattle/New York and the Bay Area all are in the same top tier band. Also, the majority of our USA engineering workforce is still based in these hubs despite being fully remote for nearly 2 years. I don't expect this trend to change any time soon.
It's not the only remote company where I've noticed this happening.
I can't answer for GitLab, but widely, people often believe that San Francisco has an "exceptional" talent pool and that companies pay a premium for that because of competition.
Pay for skills not for cost of living. You hire someone for what they can bring to the table not how much you can profit off them.
https://about.gitlab.com/handbook/total-rewards/compensation...
Not sure if I agree with this naive view. Yes, you hire people and give them what they want in exchange for work but at the end of the day, I am absolutely trying to save money as a company and increase profits as long as I am doing it reasonably.
why? do you feel that someday you'll be in their shoes and have the power to dictate salaries?
you are likely a worker like everyone else here. demand better.
I don't blame them for applying "Capitalism 101", but on the other hand, Gitlab is selling an ethos, not just a product¹. Surely, nobody likes to hear "when it's about management, we're rainbow and unicorns, but when it comes to the bottom line, we're capitalism 101".
I also think that they target talented but (from a career perspective) inexperienced engineers (a bit like old Google's free lunch and table tennis tables), which I find - at least - distasteful. Gitlab cleverly capitalizes on their brand, and in addition to the location-based salary optimization, they also offer substandard salaries (or at least, they did for a significant time; I interviewed with them, and by that time, they were paying at least 20% less than comparable companies).
¹: amusingly, they're not immune to marketing nonsense; see, for example, https://about.gitlab.com/company/culture/all-remote/all-remo....
Why shouldn't payment for work be tied to local price ranges and cost of living?
Aren't you commenting on a post about remote work? Their job market is global (within limitations.)
What's the market in this context is of course the interesting question.
Remote programming work, on the other hand, is the opposite: At least the demand side is, as this whole discussion exemplifies, global -- Gitlab isn't local to all the locations where their remote employees live. (If it were, they wouldn't be remote.)
But then the employees' supply of labour isn't local either: They're offering their labour to Gitlab, a non-local employer (and potentially to other non-local employers too).
It's utterly baffling how much of this discussion seems to be assuming that Gitlab (or other remote employers) play on a global market, but their employees on a local one. If that were the case, how could any of those employees ever be employed by any of these employers? The very fact that any transactions -- i.e. employment contracts -- ever arise shows that both parties are playing on the same market.
Why should it be? You pay someone enough to get them to work for you instead of someone else. That's the sole reason you pay someone anything at all. And there's no reason to pay them any more than that. How do local prices and cost of living fit into that equation?
If we enter a world where most SWEs work remotely and few other companies are paying location-based, we might see GitLab change their tune. For now, they're competing first and foremost against local jobs.
How do you expect to ever raise the standard of living in poor countries if you exploit their labor for pennies on the dollar. No different from apple and other who move manufacturing to cheap labor.
A real leader in remote work would try to be a part of the solution, not actively fight against it.
Like Gitlab then?
'We keep up with mediocre local jobs' is hardly 'world leader' is it?
The whole reason DVDs had regions was to price the same DVD differently based on location. As long as companies can, they will price and pay different amounts for the same thing based on local factors.
So, you were saying that's the kind of "leadership" Gitlab is boasting about, or...?
It's cheaper for them to hire people while things around foreign works are going up in price. The pay should be adjusted accordingly.
How do you measure this?
As a a manager who's hired remote engineers across 3 countries, Gitlab's salaries are laughably low.