> Yes, they could hire cheaper in Birmingham, but they can't hire _you_.
Unless you move to Birmingham. Now they can hire you. And if you want to live there then you'll probably take the offer because it will still be better than the local options in Birmingham.
Employee pay has always been about "what does it take to get them to work here" and not value to the company.
If there is something in Birmingham that you value, then you'll be willing to take a pay cut to be there.
_Some_ people will do that, like the aforementioned "can't be choosy" cohort I noted in my original comment.
For all the talk about abundance of engineering talent, talk to anyone who's actively had to hire in the past six months and it's a complete slog of unqualified candidates. I would find it hard to believe that engineering talent (_especially_ at FAANG level) is in a market position that doesn't afford them negotiation power. One or two people doing this is certainly nothing, but if enough do it, then it makes a potential difference.
I'll be very curious to see how FBs staff handles this come Jan 1. Probably disappointed, I'm aware... but curious nonetheless.
> talk to anyone who's actively had to hire in the past six months and it's a complete slog of unqualified candidates.
That's always been the case. When I did interviews at Netflix, people who had resumes that said "Senior Engineer" for five years couldn't do fizzbuzz in their favorite language.
Yes, if enough really talented people all get together and demand higher wages, they might stay high. And some stellar performers will demand high wages regardless of where they are.
But the truth of it is that most people are not stellar performers. They're good engineers who can get work done. And they will demand median salaries.
Median salaries will probably shift towards an equilibrium below SF salaries and above {pick your favorite small town in middle America}.
Unless you move to Birmingham. Now they can hire you. And if you want to live there then you'll probably take the offer because it will still be better than the local options in Birmingham.
Employee pay has always been about "what does it take to get them to work here" and not value to the company.
If there is something in Birmingham that you value, then you'll be willing to take a pay cut to be there.