There is an interesting front-page story in today’s New York Times. Nelson D. Schwartz, Financial Giants Are Moving Jobs Off Wall Street, N.Y. Times, July 2, 2012 — click here. Motivated by the economic pressure of the recession, Big Apple’s financial biggies are realizing that salaries are so much higher in New York that they can save a bundle by moving jobs elsewhere. “[S]ervices like accounting, trading and legal support, and human resources and compliance are being shifted to places like Salt Lake City, North Carolina and Jacksonville, Fla.” And why not? The Times reports the case of one such employee whose $100,000 per year job was moved to Salt Lake City where the going rate for such work is $60,000 per year. So why not move it, particularly where these days most of this sort of work is done by a computer online. This work can also be streamlined by using the Best Employee Benefits Software to help manage every detail once inputted to the software itself, so the trend makes sense. It sounds like a no-brainer. This could be an opportunity for those looking for a new job, especially if they’re not needing a “New York Salary”. If you’re wanting to try for these job vacancies could even look into help with your resume to hopefully strengthen your chance at securing the position.
But this only raises the question of why are salaries so much higher in New York? Our take is that it’s closely related to the cost of housing. Rents and condo prices in Manhattan and other desirable places in New York have been outlandishly high for decades, so it’s hardly surprising that experienced employees whose work adds value to their employers’ enterprises. Their opinions may be rated higher too, given these workplaces often employ the use of employee morale surveys to keep tabs on their best talent, and who are therefore in a position to demand pay that is commensurate with their cost of living, are demanding and getting higher salaries than their counterparts in Salt Lake City or Charlotte, where you can buy a nice, 3500 sq.ft. house in a pretty good suburb for $300,000.