Location Bias Compensation


Location bias compensation.

This is what employers have been doing for years, and that’s ok. The market allowed for this to happen.

Now with remote work being more acceptable, especially in sales, organizations are whining about having to pay people what they are worth, regardless of their physical location.

The advantage you have as a current employee is not just your skill, but your skill + knowledge and ramp time.

When your organization wants to lower your compensation based on your location, here are some suggestions:

“Hey, I understand you’re always looking at costs. I’m curious, our ramp time is ___, and that’s assuming you make the right hire. Statistically, 1 in 3 are the right hire. (Would try to get your own team data).

Also, each deal I bring is has an LTV of this ____. (Would definitely get your own team data)

I’m curious, who else besides me and you have seen this analysis I’ve just shown you?

So, we are both on the same page. You want to lower my pay by $$$ (%), which when compared to the numbers we just looked at, means my absence is going to cost you _____.

I’m happy to continue the conversation, I simply want everyone to understand this is not simply a location or spreadsheet exercise.”

Have this conversation on Zoom or in person. Not on the phone. You want to make them squirm.

Finally, role-play the shit out of this. I’m talking 10-15 times. I don’t mean in your head, I mean with someone, out loud. Your tome and inflection will get better each time, which means your confidence too.

Schedule a time with me here. I’ll do it with anyone.

Other things to consider:

  1. How do current market conditions look for a new job?
  2. What are your responsibilities, family, rent, loans, etc.?
  3. Local job market, just in case.
  4. Be prepared to walk if you don’t get what you want.
  5. Start interviewing now, it takes time to get the next gig.

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