No they're saying for a Gitlab employee moving to a higher COL area is essentially getting gitlab to pay for the mortgage (assuming the higher wage actually covers the increased mortgage of course).
Adjusting by CoL is only good for the employer, if a worker is worth X working remote in SF they're worth the same amount in the middle of nowhere.
Yeah I get it, I just don't buy it. Move to a higher COL area, and you tend to get access to a market with expanded labor demand. So, it's $HIGHER_COL_MARKET_EMPLOYER (or $HIGHER_COL_MARKET if you catch my drift) increases your wages which pays for your mortgage.
But the competition tends to be fiercer in a higher COL area, so you are still not guaranteed even a median pay job in that area if you cannot get it. Many do not. The "higher COL area = higher pay" equation seems magical except it hides that it also includes higher competition.
But we're specifically talking about someone who already has a job at Gitlab here and how the CoL adjustment affects them and the weird situation it creates, so the competitiveness doesn't really matter, they've already got the job.
> But we're specifically talking about someone who already has a job at Gitlab here and how the CoL adjustment affects them and the weird situation it creates, so the competitiveness doesn't really matter, they've already got the job.
Of course the competitiveness matters. It informs the level of optionality and leverage they have to negotiate. I would say that it's the only thing that matters. What about the CoL adjustment is weird besides it being reflective of the somewhat ugly and distasteful truth that to the company, you are a human resource and fungible cog? That's what they're paying for.
This employee will have to think about what happens if they do not come to a favorable agreement with their employer. Their BATNA completely depends on 1) the demand of other firms in the area (or remotely) and 2) their relative ability to compete. If they can perform well enough to move to a competing employer in the same locale that pays better, they will.
Adjusting by CoL is only good for the employer, if a worker is worth X working remote in SF they're worth the same amount in the middle of nowhere.