If you have a completely remote team, you're paying at least something in productivity, because training people to be open to hop on a VC or chat at a moment's notice and documenting everything through email or a shared document is not trivial, especially when you're not used to doing things that way, and the costs are not zero.
Or you could do everything asynchronously to deal with time zones, but then you're introducing an inevitable lag based on overlap of working hours.
For a healthy, functioning organization, it might be worth it. However, if your team is already dysfunctional, having remote workers exacerbates the problem. (I have first hand experience)
Many office environments are noisy too, which doesn't always make them the best place for productivity.
In an ideal world, employers would allow employees to choose themselves, and for commuting-distance, remote employees to 'hot desk' when they want.
On yet another hand working in an office and having to deal with remote workers is also a tax on the local workers productivity.
Lost count of the number of times I've had to take time out of my work schedule to VC with remotes to solve misunderstandings that would never have happened if they were working in the same room.
Company I work at also has several people who have remote worked from the very early days and don't seem to understand the entire culture of the place and workflow has changed which throws spanners in the works at times.
The difference here is who ends up paying the tax. For remote work, the employer pays the lion's share of the "tax". In a traditional setup, the employee pays the brunt of the "tax".
With employees working remotely, the employer can also make big cost savings by needing a much smaller office space.
There's plenty of research as to the negative effects of commuting (e.g. https://www.psychologytoday.com/blog/urban-survival/201501/c...)
If an employer isn't paying me enough to cover travel costs and another offers work from home, it is a reason to switch jobs.
I suspect that and a dozen other tiny reasons are why work in office jobs tend to pay more than work from home jobs.
Remote work is a very recent phenomenon and as such, runs into a completely different set of problems that haven't been as thoroughly solved as a co-located working environment.
It's like picking PostGres/Mysql over Cassandra/Mongo. Sure, both have problems, but the traditional SQL solutions are stable and the problems have known workarounds. With NoSQL solutions, you might be one of the first people who are doing that particular use case, and you'll have to pioneer your own solution, at the expense of the company's business plan/profit.
For example, commuting has been instrumental in helping me lose 35 kg in 10 months, from size 46 to size 36.
I made the decision to always commute walking (30 minutes commute which I do 4 times a day because I also wanted to have lunch at home with my family). Once you factor in that your commute is 30 minutes instead of 10 minutes (or 0 minutes if you work at home), things are rather easy.
So I end up spending 2 hours a day walking, which turns out to be an activity that I happen to like a lot (its been a bit of an evolution, possibly inspired by the "Love what you do" approach to things as opposed to "Do what you love") and therefore I do not see it as a time waste at all.
I think that what worked for me (goal: increase activity) was to build the activity as a part of routine that was too inconvenient to skip, and then ending up liking that routine. I do not see anymore commuting as busy time, for me it is part of my free time, an activity that I do want to do. In other words, on weekends I now usually go hiking and I do not consider as busy time.
But it's not that simple, because the "remote tax" is paid by everyone, not just by those who decide to work remotely.
At the company I work for, we're spread around a few countries and are well used to working this way. But despite the benefits, not everyone chooses to work from home - not everyone has a home environment conducive to remote work, and some simply don't like it. We've got decent comms tools, and honestly, the 'remote work tax' is very seldom an issue.
Even meetings make more sense at your computer. Who wants to squint at an overhead in a room full of people? I'd rather get a close-up view of the presentation (screenshare) and be able to hear everyone clearly. I can capture screenshots, take notes, schedule follow ups etc.
There are frequent times throughout my working day when I ping the dev who sits next to me (or they png me) to ask if I'm free to chat "IRL" for 2 minutes, and if so we'll do a _very_ quick pairing session on a bug, or get input from the other on a design problem. These things are big enough that they are worth getting a quick check on from someone else, but likely small enough that typing out a more complete explanation, or even having to loop someone else into the full context, is prohibitively expensive. I don't think we'd lose out much from not having that ability - when the other one of us is busy we can't do it anyway - but I think the lack of it does cost something.
> Even meetings make more sense at your computer.
I think I'd also disagree with this to some extent. I think it's easier to get distracted at a computer, distracts others who work next to people who are talking into a mic on their computer, and can add overhead with connection issues (I find adding a remote employee adds ~3-5 minutes an hour of overhead, and they are involved less in the meeting). That said, we don't have computers in meetings other than the one that is running the screen, so people aren't getting distracted by (or working on) other things, and we have a tendency to (politely) walk out of meetings that we feel we aren't adding value to.
It just depends on the situation and the person. For some people it's great, for some okay, for some horrible. Luckily, there are a wide range of employment options so you can chose employment that fits your needs/desires.
Well, it doesn't matter if you get twice the work done, if it doesn't advance the team twice as much.
If you're working completely independently, sure, work from home. Contractors have far more leeway than salaried employees in that regard.
If you're working remotely but as an integral part of the team, it doesn't matter as much that you're individually getting twice the amount of work done, if it doesn't dovetail with team objectives. Without constant communication, which is facilitated by in-person interactions and communication, the team might actually be working forwards more slowly.
It doesn't matter if you're coding two features instead of one in the same amount of time, if the two features never hit production and the one feature does.
How is that any different that in office? In my experience, in office communication is often MORE difficult to document. Remote communication often happens via email, or text, and can naturally document in an informal way. Technical documents are no harder, or easier, to 'train' employees to create when working remotely or in office.
- Or you could do everything asynchronously to deal with time zones, but then you're introducing an inevitable lag based on overlap of working hours.
This is really more a problem with dispersing your team, than it is with remote working. You can have a remote work company with everyone in the same time zone.
Remote work carries with it a certain number of risks to be sure. But it's not nearly as risky as I feel like people make it out to be.
Exactly, because if everybody is colocated, you can pick up on subtle social cues and figure out what's important and what people are working on just based on what people are talking about. If you spend that much face time with people, unless you're completely socially stunted, you don't have to document things because people "just get it".
> Remote work carries with it a certain number of risks to be sure. But it's not nearly as risky as I feel like people make it out to be.
There are tradeoffs to everything, and I think on this board, things have swung too far to the other side. Remote work is not an absolute panacea, and carries with it costs. Just like NoSQL is not the end-all be-all of datastores, remote work isn't the right solution for many teams.
and then a year later when you have to figure out why something was done a certain way what do you do? or when some of the people that "were there" have left and nobody else remembers?
If all the discussions are written, there is no risk of forgetting anything: even working in an office I always send an email after a meeting or random chat to the person involved to document what we talked about, what was decided and why. I might also cc other people that should be kept in the loop, which is also something you cannot do if you just talk.
Remote working enforces discipline, which is good in the long run, but is not very rewarding in the short run and requires the pre-loading of effort.
Humans are really bad at making those sort of trade-offs. That's why many of us still eat fast food, smoke, and don't exercise.
Even though you're "doing the right thing", there are immediate up front costs for theoretical (but very real) benefits down the road. Even though you're doing the right thing, maybe an organization isn't quite prepared to pay the costs to do things that way. Hence, "work tax".
Also, my assertion that remote work is mainly for healthy organizations holds sway. It really magnified and focuses a light on an organization's details and flaws, and many people don't like that.
I ask because from what I've seen, the partially remote situations have generally been more dysfunctional than fully remote. When it's one person who missed the conversation, it just makes their life miserable; when it's everyone else, it makes -your- (the person with the info's) life miserable, and that leads to better communication processes and documentation.
My experience with Indian devs has been their English is as "proper" as anyone's, and their technical skill levels vary with about as much variation as in the U.S., where there are also plenty of not very good developers.
The thing is, once a company has decided to prioritize saving money on developers, they are probably willing to take devs who are really not very good to get cost savings (whether they realize it or not), and there are a lot of companies in India which exist to help them do that. If they wanted to hire not very good developers at cheaper rates in the U.S., they could easily do that too. Perhaps the people making the decisions fool themselves into thinking the rock-bottom-rate devs they are hiring in India are magically highly skilled, and somehow it's easier to fool yourself this way when they are on the other side of the world.
Because California, number one, and because everything costs 3-10X what it does elsewhere. I could easily double my salary if I moved to SV, but I'd have to live in a van in the parking lot like a hobo, instead of being able to afford a decent house and have a goodly amount of disposable income.
Remote work allows for a better diversification of work forces across regions. For example, if somebody who lives in Detroit because that is where they were born and family is can have the same high tech job as people in the Bay Area it helps Detroit be more resilient and flexible to regional business fluctuations.
You vastly underestimate just how cheap outsourcing is
This is anecdotal but over and over again, this was the scenario:
1. local firm collects bids
2. As courtesy firm tells us we were 2-5x more expensive than winner, winner is in far east.
3. 1,2,3 years latter firm returns to us asking if we can re-submit but on a more shorter timeline (maybe the project would have been 2-3 engineers for 6 mo)
4. We come back with a new bid that is 8-12x more, has a bigger team than we would have used orgiinally, less favorable risk analysis..
5. They paid us to take them on! Often-times we had to throw away almost everything their Bangladesh contractors had been working on for years (fundamentally bad schema, no unit tests, bad bad code)...If engineers in India are, say, 5x cheaper fully-loaded than in the US; and some of them are awesome engineers; why are there not startups in the West competing to pay the rock-stars a Western salary but have them stay in India?
With all the close ties between the Indian IT sector and Silicon Valley I would expect it to be common practice especially among startups to try recruiting the best away from, say, InfoSys by simply paying them what you'd end up paying an inferior engineer locally.
As far as I can tell this is not done very often. Anybody know why? Or am I just not aware of it?
The hardest part would be to build a team of true startup hustlers, because the outsourcing industry has not been built around those types of people. Traditionally you have to have very strong top-down management and clear requirements since the mentality on the other end is to do what your told, avoid giving bad news, and maximize billable hours. This is something that large companies with established products can do a lot easier than startups.
In general the reduced execution risk is not worth the cost savings because you don't yet have a business, you are trying to build one. The safer bet for a startup very tight team working hand in glove where every employee is obsessed with the high-level product.
I've seen people who've got really cool sites to show that they've worked on in their spare time, or worked on with local collaborators.
Somehow, and it's hard to pinpoint how, when they try to work with someone in the West, it breaks down. Understandings that are natural to you sitting in one part of the world may have been completely missed by your remote guy in the East. Doesn't always happen, but it's enough to warrant a risk premium.
If you're paying them a Western salary, why not relocate them to be local? In my personal experience this is what I see happen when we do ID an engineer who isn't local but good
Doesn't that remove any kind of gain from outsourcing? What would be the point? You now have the downside of SV salaries and the downside of managing remote teams across the globe.
"With all the close ties between the Indian IT sector and Silicon Valley I would expect it to be common practice especially among startups to try recruiting the best away from, say, InfoSys by simply paying them what you'd end up paying an inferior engineer locally."
Usually those worth their salt aren't working for Infosys in the first place.
There's also control, if you outsource your whole project then why do your workers even need you? They could just do it themselves and cut you out completely.
I understand that this is just a single anecdote but I work with quite a few people who have moved here from SF – and have friends who have made the opposite move – and they have all reported something similar.
If you meant "overall net income", then the Houston dev would likely come out ahead after taxes and rent/mortgage.
Plus, you get to be out in the sticks, not cheek by jowl with a million other people.
It would be totally awesome to get a group of developers together and hack away at stuff not having to worry about going home for a few days.
lol to me this is the opposite of "totally awesome"
"work for us, never go home, leave your family behind"
Sadly, this gung-ho "for the company" attitude, which arises from a combination of naivety and boredom, is one of the essential characteristics that VCs want to see in prospective founders. It's one of the biggest reasons they push the "You must be young and pure to be an innovative founder!" angle, although most people aged 25+ can see pretty clearly that experienced founders would be a great benefit to any company. That experience threatens the VC game, so they keep it as far away as they can.
http://www.kauffman.org/what-we-do/research/2010/05/the-anat...
Well, it was the military, and you'd have to replace "hack away" with "non-stop exercise and dumb chores", but the analogy still fits I think.
The downside of working remotely all my days are at work, or is it all my days are at home :-)
Most people over 25 want to go home at the end of the day to their friends/family and don't want to live in dorms.
Older adults (aka anyone over 23) typically prefer to have their own space.
And many people, surprisingly enough, don't want their job to be the sole focus of their existence.
We found it easier to grow and expand all over the world and didn't grow as much in the Bay Area as thought. Currently only 20-30 people of our 550+ live in Bay Area
Also as far as space goes, that is just one photo of the downstairs area of the space. You can see more at https://automattic.com/lounge/ and some early shots here https://customspaces.com/photo/uklO4BLxis/
P.S. I'm the guy in the green shirt in the photo, woo hoo!
[1] https://techcrunch.com/2011/09/06/pier-38-shut-down/