I know it sounds crass but I’ve been there as a manager and in my own career with multiple international moves, and it’s a headache. Let me explain... 1/ https://twitter.com/elanazak/status/1304522092898070528

If the SF employee moves to Denver with an SF salary, you create an inequality with the local employee doing the same job who’s been there all along and paid a Denver salary. You open yourself up to a lawsuit or at a minimum nasty office politics. It’s just not fair. 2/

Option 1/ raise the locals to SF level. Aka pay everyone the same wherever they are. You have to align with what it takes to attract talent in your most expensive city. It’s gonna cost a pretty penny. 3/

Option 2/ Align compensation with the local market when the employee moves. If it’s a cut, your employee is pissed. If they’re moving to help the business, they feel cheated. Performance and culture take a hit. 4/

If the move is their choice, they’ll have to weigh pros and cons and decide. If it’s not, you gotta give them enough a title promotion to be able to at least match comp. (i know bc my boss did for me and he was brilliant.) 5/

Something employees never understand: they compare compensation to cost of living when thinking of moving, but that’s not how employers set it. They’re looking at market rates: how much money it takes to attract talent in a particular location. 6/

So if you move SF to London, the loss in salary is WORSE than the difference in cost of living: London salaries are low. You’ll make more in Germany than in France for the same job, same company, even though life is cheaper in Germany. 7/

Point is, compensation is hard and unfair, even when you’re trying to do the right thing. Becoming a manager was an education in how it works and empowered me to advocate for myself and for others. We need to talk about it more. 8/

If you’re in management, first pay people fairly, then explain all this stuff. No one should wonder whether they’re fairly compensated. In my experience, that’s the #1 reason resentment festers in teams. 9/

If you’re wondering about your own comp, ask. A good company should tell you what the range is and where you are in it. And advocate for yourself on the basis of performance & how your company sets comp. Saying “rent is higher here” will get you nowhere. 10/