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this post was submitted on 15 Aug 2023
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Asklemmy
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They outsourced because they could pay their employees less.
Some companies attempted to pay workers who moved to areas with cheaper cost of living, but that failed. My guess is that full remote companies are going to shift wages so that they are closer to the national average than the region.
I know why they did it
It's just a dumb argument when it wasn't one before
They are looking at it from a productivity per hour basis.
With offshoring, the individual worker is cheaper, so they can be less productive yet still worth it.
With full remote, you are still paying the workers the same amount of money, so keeping productivity up may be worth it.
I saw someone else pointing out in the thread that fully remote companies would, in time, probably adjust their salaries too. (EDIT: ah, oops... it wasn't someone else, it was always you!! Sorry!)
As an employee, in the short term, I like to e.g. keep a London salary and save on housing and commute by moving to Manchester. But in a fully remote company there would be no "London" salary or London office at all, so salaries would be likely reflecting a blended national job market.
The transition is certainly awkward for existing companies, though, as nobody wants a salary cut (which by itself could be a good explaination for them wanting to maintain the previous in-office status quo).