There are probably multiple reasons for this. But here are a few that come to mind:<p>Nepotism -
It would be naive of me to think there is no nepotism in hiring.<p>Hiring abroad can be a nightmare -
Let's say the $50K employee is in another country.
You now need to:
A) Become familiar with the legal and tax implications of hiring someone from that country
B) Establishing a company in that country in order to hire that person
C) Finding out how to manage your new company in the new country. Paying taxes etc
The reason employers of record services like <a href="https://deel.com/" rel="nofollow">https://deel.com/</a> have become so popular is because hiring that $50K employee will now probably take a lot of time and money.<p>Larger Talent Pool + Competition -
The company still competes with other remote first companies that pay $200k for the same role. Therefore, simply paying less will cause candidates to seek out other companies that pay more. In addition, offering $200K to anyone anywhere in the world means that you have a LOT more applicants, which could allow you to choose the best when money is no object.
If a position is remote then the market is national or even global depending on how the company handles tax concerns for employees. Which means the upper bound is competing against the lower bound and the real market is probably going to converge in the middle somewhere on average. Some employees aren't going to be average though and some companies are going to pay a market premium to get those employees.<p>Without any context for your comment I don't find it surprising or problematic that a company is paying 200k instead of 50k
It depends on what you're implying.<p>You're simply not going to find good, consistent, loyal talent for $50K USD.<p>That said, you should be able to find it at a higher price point under $200K.<p>The simple fact is that most companies aren't paying this much for either in-person or remote work. The average salary for an IT professional is still under $100K in the US, and well under that in many other countries.<p>As far as why a company may pay $200K for talent, some employees are simply worth that much (or a lot more).
Are you already upper management, or just have aspirations at this point?<p>Don’t forget to mention avocado toast. Those employees expecting more than $50k are just spoiled, aren’t they.