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Remote First at Brex

53 pointsby bfelboover 4 years ago

12 comments

nrmitchiover 4 years ago
&gt; What happens to my compensation if I move? Brex pays by geographic market, so we will ultimately adjust an employee’s Total Compensation Value (TCV) if they relocate to where pay rates are different. However, for current Brex employees who relocate before Sep 1, 2021, Brex will not make any compensation adjustments until Sep 1, 2024 to help each of us manage through the unusual circumstances associated with COVID-19. Standard relocation compensation adjustments will apply immediately for all employees who start at Brex after Sep 1, 2020.<p>There are many different thoughts around the &quot;right way&quot; to do compensation adjustments in a remote-first world, but 4 years feels like way to long to have to deal with an SF-&gt;local pay discrepancy existing within teams.<p>If someone was to join Brex in 2022, it would feel very weird to learn that their peer on the same team, in the same geographic region, is still getting their SF based comp package, but hasn&#x27;t lived there in 2 years.
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mStreamTeamover 4 years ago
Brex laid off a significant portion of their staff earlier this year. It sounds like they are trying to save more money by getting rid of their expensive office space in Manhattan and SF<p><a href="https:&#x2F;&#x2F;techcrunch.com&#x2F;2020&#x2F;05&#x2F;29&#x2F;brex-the-credit-card-for-startups-cuts-staff-amid-restructuring&#x2F;" rel="nofollow">https:&#x2F;&#x2F;techcrunch.com&#x2F;2020&#x2F;05&#x2F;29&#x2F;brex-the-credit-card-for-s...</a>
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daavableover 4 years ago
Companies don&#x27;t pay employees based on &quot;what they&#x27;re worth to the company&quot;. Just like with other goods and services, the market dictates the price.<p>So, companies pay what they can to compete for talent in the market. This meant that in high-competition markets like SV, the price (for engineering talent) was very high.<p>If now the market dynamics have shifted by not limiting supply to the SV area, then you would SV companies to pay LESS for the same engineering talent. So, if you argue that people should be paid the same no matter where they live, then you should also be prepared for salaries for many engineers to fall.
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whalesaladover 4 years ago
I remember interviewing here and being bummed when they were 110% strictly no remote. Not surprised to see the about face here based on current events, but based on my experience it is a little surprising.<p>Without saying anything disparaging I do not imagine it is a pleasant place to work.
nhumrichover 4 years ago
I disagree. I think its actually correct to adjust based on location. Everyone is only looking at it from a &quot;I am smart by living somewhere cheaper, dont doc my pay&quot;, but not seeing it the other way around as well. If you worked at a company based out of, say, detroit, but lived in SF, you would demand SF income, because otherwise you wouldn&#x27;t be able to afford a living.<p>This policy protects you, even if you do work at a SF place. Lets say, in theory, you move to some place cheaper, and that place starts becoming more expensive. Likewise, SF becomes cheaper over time (or, the company just moves HQ to somewhere cheap). By doing location based pay, your pay continues to go up, in line with your local area cost of living. Otherwise, if you were still getting paid based on SF cost of living, you would be loosing money every year. Eventually forcing you to move, which, you might not be able to do because of family, house, etc.<p>Second, its ethical. &quot;Salary&quot; represents a quality of life, i.e. Purchasing power, not a raw number of dollars. If you were paid SF wages while you lived in a third world country, you could very well be the richest man in the country. This does not make sense. Nor is it ethical, think of the raw damage you could do to that economy. For a more common scenario, do you really feel that a mediocre software dev working for a SF company should be paid more than the local best ER doctor? Many professions simply cant be done &quot;remote&quot;<p>Third, it makes all companies &quot;equal&quot;. In a &quot;remote first&quot; company, the location of the HQ shouldn&#x27;t matter. Maybe, not even exist. Most companies are actually &quot;Delaware companies&quot;. Should they pay delaware salaries?<p>And lastly, its just economics. The reason salaries are so high in SF is because no one wants to live in SF, because cost of living is so high. Its supply and demand. The cost of finding good talent in SF is astronomically high. As soon as you go &quot;world wide&quot;, then you can attract great talent at a cheaper price. AKA, if you are going to demand a SF salary, they can certainly find someone cheaper and better (fire your ass). Frankly, _still_ getting paid a SF salary while in SF at a remote company is just incredibly generous of the company. At remote first companies, salaries will have a downward force. Over time, you will get paid less working remote.
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tempsyover 4 years ago
I blame FB for setting this bad precedent. Now that they&#x27;ve set the standard for remote compensation every company now has cover to adjust compensation using some flawed cost of living calculator.
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xyzzy_plughover 4 years ago
&gt; Henrique used to play an online game called Ragnarök<p>I feel like this was a rite of passage for an era of Brazilians.
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tallgiraffeover 4 years ago
There are some good pro&#x27;s and con&#x27;s to this strategy, but given market forces I can imagine the future where everyone &quot;works&quot; from the same address in the Bay Area, while being based elsewhere. Maybe I am hoping to see this as a hack :)
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gyulaiover 4 years ago
For a remote company to adjust pay to employee&#x27;s geography: so not cool.<p>Offering remote and paying people based on what they&#x27;re worth to the company: Part of the solution! (The problem being: Structural deficits in certain regions yield lack of adequately-compensated employment opportunities for the highly-skilled. This makes the highly-skilled relocate. This makes it difficult to overcome structural difficulties).<p>Offering remote and paying people based on where they are: Part of the problem!
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giacagliaover 4 years ago
This seems like a big deal. More and more companies are transitioning to Remote First....
saagarjhaover 4 years ago
This isn&#x27;t really related at all, but I&#x27;ve always considered &quot;Brex&quot; to be a strange name considering <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Bre-X" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Bre-X</a>
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carriganismsover 4 years ago
A service that does planning and execution of off-site meetups for remote companies is a great business idea. Essentially, travel agency&#x2F;event planning for remote first companies.<p>Once we&#x27;re past COVID, a lot of companies are going to stick with remote first and making the planning of off-sites easy seems like a must need service.
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