Can I use cost of living as a negotation for an offer? For example I make 105k TC in Houston, but based on NerdWallet that is the equivalent of 173k in Seattle. Is it a good argument? comments would be helpful on why or why not! thanks
Mostly the market TC (all things considered equal) will factor into the cost of living.
Employers don't care about theoretical discussions on the cost of living. Things they care are the availability and the cost of local engineers in the area. You should negotiate based on the salaries in the region you are moving to; your previous location doesn't matter at all.
You seem to have a pretty simplistic viewpoint of negotiations. If you’ve already established that you have high degree of value, COL changes can be used as a cake topper to eke out that last bit of TC to where you want to be. I’ve negotiated as much as $50k more in TC based strictly on COL, after already knowing my value.
Thanks Wulperting! This gives me hope
My previous employer refused to pay more for COL. I moved anyways telling myself that I leave the company in an year for a better TC and that's exactly what happened.
Don't tell them how much you're making now. Just talk about the salary range you're looking for and what would be interesting to you in order to make the move
Shit I spilled the beans
Not surprised to see so many incorrect answers lol but for what it's worth companies never pay cost of living, they pay cost of demand so no this is a very weak negotiation data point. Instead focus on your value in the market and get a lot more than a cost of living raise.
No company is going to pay more than the local market demands for labor. That said it's totally valid to adjust your current income plus some multiplier to come up with a number. You should also be willing to walk away if your number can't be met unless you're playing some kind of long game.
Definitely strong! I’d focus on market rate (based on levels.fyi or whatever you choose to define that), and say moving wouldn’t be practical for less than X TC. X should be your current salary, plus a 15% raise (minimum needed to justify the overhead of changing companies, in my opinion), plus the COL adjustment compounded upon that. Then provide that formula if they ask for why that number.
Key point, your BATNA is not moving if you disclose the formula, so do whatever you can to keep the discussion focused on TC and not how you calculated your target. A good recruiter will see that 15% margin and try to cut it. Hold strong, they have to make changing companies and moving worth your while. Starting a new role and a move are both meaningful risks.