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Companies have found that to hire engineers living in SF, they need to pay more than hiring someone living in Idaho. That is supply and demand.

Could those employees move elsewhere? Sure. That may in fact happen. But right now, an engineer in SF has both remote demand and local demand at FAR higher rates than someone in idaho.

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Why companies care about hiring people in SF? If the company is fully remote, it shouldn’t matter. If it does matter then saying it’s fully remote is a lie. If there’s a need for a specific role to be physically in SF then hire in SF for that role. Also at this day the idea that they are competing against companies hiring locally is ludicrous. That might have been the case 5 years ago, but today most companies are hiring globally for remote positions — that’s your competition. Paying based on where people live is just burning company to subsidize insanely high real estate — and ensure your SF bros can keep their jobs.

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