Oh, I absolutely agree – there is an overhead to hiring remotely (especially if you need to operate another business there, like Google does in Warsaw), so if you have to pay someone the same and cover that overhead then it's a bad business decision to do this at all. Timezone/cultural issues also come into this.
So yeah, I'm not surprised that businesses (try to) do this – but in the current situation it's worthwhile (and possible) for the hires (especially contractors) to try to go against that and argue for higher pay. Even if the actual SV salary is not within reach, you can at least try to stay within the same order of magnitude – and more often than not, especially at the end of the interview process, it'd be cheaper for the company to hire you anyway than to start over with someone else.
That's all in my narrow experience of working with smaller companies – in megacorps with strict levels/salary rules like Google it's probably another story. And that's also why Google is not (any longer?) the holy grail for Polish workers.
So yeah, I'm not surprised that businesses (try to) do this – but in the current situation it's worthwhile (and possible) for the hires (especially contractors) to try to go against that and argue for higher pay. Even if the actual SV salary is not within reach, you can at least try to stay within the same order of magnitude – and more often than not, especially at the end of the interview process, it'd be cheaper for the company to hire you anyway than to start over with someone else.
That's all in my narrow experience of working with smaller companies – in megacorps with strict levels/salary rules like Google it's probably another story. And that's also why Google is not (any longer?) the holy grail for Polish workers.