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Hello everyone!

I new on this remote-work amazing world, so there are some things on the vacancies that are unknown for me. Recently I saw a vacancy on remote.io with this message:

“We are offering a starting salary of $XX,XXX - $XX,XXX USD depending on experience and subject to market rate.”

I’m not pretty sure about what is referring. When it says “market rate”, Does it can be interpreted as they will be taking on count where do you live to give you a custom offer?

Hope someone would share your experience to clarify this :D Cheers!


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    Hey Samuel,

    That’s an interesting question! Could you also point us to the relevant post from remote.io for reference?

    I have also asked Tony (remoteio), founder of remote.io, about this and should have an update for you soon :-)

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      Hey @hrishikesh!

      Of course, this is the post: https://remotive.io/remote-jobs/software-dev/site-reliability-engineer-240863

      Thanks for your help!

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        Thanks Samuel! I think Boris’s answer is Bang on. The listing talks about a salary range and the company would fix the pay basis where you are located and prevailing market rate there.

        Although the good thing about this seems to be that there’s a fixed lower range ($89000) and not a huge difference between the high and low end.

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      Hey Samuel,

      When salary ranges are provided, they are typically based on the current rate rates for the city or country the company is located. It’s not a fixed rate and is generally very flexible for the right candidates.

      Until about a year and a half ago, I was a hiring manager and ran multi-state development teams for large projects. One of the key takeaways was that compensation is a negotiation. The salary ranges companies post are what they would like to pay the person they are hiring. Conversely, when a candidate requests a specific salary, that’s what they would like. If you’re a strong enough candidate, you’ll then negotiate to find terms that make it work it for the both of you.

      People typically only focus on the money but should also consider other compensation incentives. How much paid vacation time did they offer? Most companies are more than happy to give you an extra week of paid vacation days if it means they don’t have to increase the salary as much. This equates to a higher quality of life due to less work. If it’s a company that offers equity, they will negotiate an equity package that could end up being far more valuable after a couple years than the extra $10-20k you might be trying to get with salary.

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        Hey @remoteio,

        Thanks, I agree with you, usually, companies offer compensation incentives, right now where I am working, I have some of them. I think those are more important for me: -paid vacations (at least 20 days/year) -Budget for my continuos grow (courses, conventions, certifications, etc.) -Medical insurance

        Are there other incentives I have to take in mind especially for remote working? Thanks by advance!

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          Hey, @Samuelkb.

          Retirement package is pretty big. In the US, companies will typically match a portion of your contributions to a 401k retirement plan.

          Profit sharing is sometimes offered depending on the company structure. If they don’t have a profit sharing incentive, inquire about merit-based and year-end bonuses.

          Expenses are also something to discuss. If they require you have a land-line telephone or mobile phone, you can usually get that reimbursed (at least partially). You can also inquire about reimbursements / compensation for internet, hardware, office supplies, etc.

          Find out the work schedule and how flexible it is. Some companies require you work a very strict schedule while more progressive companies understand developers may not be as productive during the company primary work hours.

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            Fantastic inputs! Particularly, the point around compensation incentives is a great takeaway :)

            I am curious to know more about your thoughts/ experience on this - when you say that compensation is often a negotiation, is this negotiation always against the benchmark of local rates for the candidate? How often have you seen candidates negotiating and end up being paid higher than what they may be offered locally?

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              Hey, @hrishikesh.

              That’s a difficult question to answer. It all depends on how desperate the company is to fill the position, how well the candidate meets (and exceeds) the requirements, and whether the company is established enough to justify the additional payroll for a single person.

              You also have to factor in that most people don’t even try to negotiate salary. I tell everyone, ask for more than you want. You can always negotiate down but you aren’t going to be able to change your mind and ask for more after you’ve signed the offer letter.

              In the US, it’s quite common for excessively experienced people to be offered far over “market rate” for the position they are filling. Often, this is because they have enough overlap that they can fill (at least partially) multiple roles or they are a person that can bring additional value to the company.

              I’ve had previous employees get offers far above my own previous salary based solely on the projects and technologies I had them using and their ability to negotiate.

              I’ve also been offered nearly double the market rate for the position I was in previously to make a lateral move to another company but that was because my resume is insane and covers most of the technology and business management segments.

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                Very well put :-)

                Thank you for sharing such a detailed response!

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                  Super helpful. I have learnt more from reading these comments than I would have by taking a course on all of this. Thanks @remoteio :)

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          Great question Samuel. I’ve a hunch what it could mean, but I guess you don’t want a hunch but a solid answer :)

          @Borisov91 is the expert in this domain. Hey Boris, can you please help us when you have a moment?

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            Thank you for the compliment, @karthik :-)

            It sounds like something that the company wrote in their job posting (?)

            .



            Most likely the meaning is: They will try to guess what salary you can get on the market (by looking at the salaries in your country), and offer you a bit better salary than that so you are motivated (in practice, something like 20% on top).

            The salary range is to indicate what range they are prepared to pay. For example, a company in Germany may be willing to pay up to $4000/month for a mid-level developer (those are the prices in Germany), so they wouldn’t really consider a mid-level developer from the US since that person will expect at least $5000/month.


            .

            This is how most remote companies hire in practice. Even if they don’t communicate it.

            Some people would say it is totally immoral. Equal work must be equal pay. Regardless of where you are based. Morally, I agree. Some people believe that we are headed to this being the norm.

            But to be honest, I find it too idealistic - I don’t think we are headed in this direction. Companies would pay what is needed to get the people they need, and to keep them motivated. Does this mean location-specific salaries? Yes.

            Are we going to see more similar salaries across locations over time? Probably yes, but it will take at least 10 years. As of now, remote worker salaries are kind of the wild west. I have seen Junior Developers from poor countries asking for $8,000/month salaries.

            For day to day purposes, I stick with what I see to be the reality, and I don’t ask myself too much if the world should re-consider how it does things.

            Therefore, the bottom line of this section is - be prepared to negotiate! If you are willing to insist that you can get a better salary elsewhere (e.g. your current job), and it is in their range, there’s a good chance you can get that.

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              Great primer to understanding about remote job salaries! Thanks so much for the detailed answer Boris - you are the best :)

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                You are welcome, Karthik! :)

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                Hey @ Borisov91

                Thanks for the explanation, it’s very clear and gives me an idea of how it works for remote working!

                One of the main purposes I have to look for remote work is the payment. That’s because here in Mexico the salaries range is lower than countries like Germany, the UK or the US.

                I have been investigating more Mexicans working on remote jobs but without success yet, I understand sometimes because internet infrastructure, languages or some variables it’s a little bit uncommon for Latin American countries to get remote works.

                For this vacancy in specific (https://remotive.io/remote-jobs/software-dev/site-reliability-engineer-240863), is it correct/better to negotiate with their salary range? Or be prepared to receive a lower offer?. (Of course, after demonstrate I have the skills and talent for that job :D)

                Thanks again @ Borisov91!

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                  Hey Samuel,

                  There’s a good chance that you can get a number in the range they’ve listed.

                  Normally, I would say definitely go for that range - in this case, it’s a bit strange that the range is so narrow.

                  But yes, I would try to go for the range indeed (unless I need the job asap).