We don’t actually have anyone who lives in San Francisco, but now everyone is being paid as though they did. Whatever an employee pockets in the difference in cost of living between where they are and the sky-high prices in San Francisco is theirs to keep.
That’s what we did. Starting 2018, Basecamp is paying everyone as though they live in San Francisco and work for a software company that pays in the top 10% of that market (compared to base pay + bonus, but not options).
Unsurprisingly, exhausted, stressed out, and unhealthy employees are also more likely to leave. Workplace stress increases voluntary turnover by 50%, which means in addition to hurting a company’s bottom line by impacting the quality of work, it also leads to churn. And churn is expensive, both financially and culturally. The cost of replacing a single employee is about 20% of that person’s annual salary, and the process often results in encouraging others to leave, too.
Things fall apart; the centre cannot hold Mere anarchy is loosed upon the world, The blood-dimmed tide is loosed, and everywhere The ceremony of innocence is drowned; The best lack all conviction, while the worst Are full of passionate intensity