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I'll say it again: Hawaiian employers can pay employees less than employers on the mainland, so they do. From the employers' perspective, why pay more than necessary on salaries when you know prospective employees will accept lower pay to live in Hawaii?
Your logic is seriously flawed.
First off, using a comparison of Hawaiian Islands makes no sense at all - compensation on Oahu vs. Kauai vs. Maui vs. the Big Island is radically different so lumping them together drags it down significantly.
Second - the reason pay is generally lower in Hawaii is due to a combination of the high cost of doing business (electricity, land, benefits/medical), inability to charge premium prices for services, and a lack of highly profitable local businesses like you find on the mainland - for instance, a lot of accountants work at small mom and pop places and don't get paid a lot - but if one looked at an accountant at lets say, Bank of Hawaii - that position wouldn't pay much differently than someone in Seattle.
Lastly, this notion of all these people moving to Hawaii for low paying jobs is also false - not that many people to move to Hawaii each - dreaming about it and actually doing it are very different concepts.
Nice try on the conspiracy theory though that employers are out to get everyone.
First off, using a comparison of Hawaiian Islands makes no sense at all - compensation on Oahu vs. Kauai vs. Maui vs. the Big Island is radically different so lumping them together drags it down significantly.
Second - the reason pay is generally lower in Hawaii is due to a combination of the high cost of doing business (electricity, land, benefits/medical), inability to charge premium prices for services, and a lack of highly profitable local businesses like you find on the mainland - for instance, a lot of accountants work at small mom and pop places and don't get paid a lot - but if one looked at an accountant at lets say, Bank of Hawaii - that position wouldn't pay much differently than someone in Seattle.
Lastly, this notion of all these people moving to Hawaii for low paying jobs is also false - not that many people to move to Hawaii each - dreaming about it and actually doing it are very different concepts.
Nice try on the conspiracy theory though that employers are out to get everyone.
Again, I work in finance. The Bank of Hawaii absolutely pays much less than a regional bank of Seattle...or a state bank in California, Texas, the Northeast, or the Southeast. Of course mom and pops can't pay up, but the places that have the ability to pay comparable salaries (national chains for services, large corporations with satellite offices in Hawaii, profitable large Hawaiian businesses) choose not to do so when they're paying employees in the state. Granted, the cost to lease & power commercial space will eat into salaries but there's no way those higher costs justify salaries being 25-50% below the national average. This applies to Oahu if that's the only island you want to look at.
I'd also like to touch on, "this notion of all these people moving to Hawaii for low paying jobs is also false." I know a handful of people who took pay cuts to move from the northeast to Hawaii. They're educated people who have decent jobs so, no, they're not poor and they don't have exceptionally low paying jobs but they all took pay cuts to move to the islands. They don't regret their choices but they're not delusional. They acknowledge they could have made more money for their respective jobs if they didn't move to Hawaii; they just chose the better climate/lifestyle over having better income.
Also, this isn't a conspiracy theory--it's economics. If you have a ton of applicants for jobs (as all Hawaiian job postings do) you can offer as little money as possible for one of the many qualified candidates. In other states where the job to qualified applicant ratio is significantly lower than it is in Hawaii, employers are forced to pay higher salaries to fill their positions.
Again, I work in finance. The Bank of Hawaii absolutely pays much less than a regional bank of Seattle...or a state bank in California, Texas, the Northeast, or the Southeast.
Lets see the numbers for comparable positions.
Quote:
Originally Posted by Kristin85
Of course mom and pops can't pay up, but the places that have the ability to pay comparable salaries (national chains for services, large corporations with satellite offices in Hawaii, profitable large Hawaiian businesses) choose not to do so when they're paying employees in the state. Granted, the cost to lease & power commercial space will eat into salaries but there's no way those higher costs justify salaries being 25-50% below the national average. This applies to Oahu if that's the only island you want to look at.
Do you have numbers to quantify your position?
Quote:
Originally Posted by Kristin85
Also, this isn't a conspiracy theory--it's economics. If you have a ton of applicants for jobs (as all Hawaiian job postings do) you can offer as little money as possible for one of the many qualified candidates.
Another false statement - Hawaii is at record low unemployment - employers have serious challenges in filling positions - they don't typically "have a ton of applicants" speaking as a hiring manager in Hawaii.
Quote:
Originally Posted by Kristin85
In other states where the job to qualified applicant ratio is significantly lower than it is in Hawaii, employers are forced to pay higher salaries to fill their positions.
Do you have a source for that given Hawaii record low unemployment?
Again, I work in finance. The Bank of Hawaii absolutely pays much less than a regional bank of Seattle...or a state bank in California, Texas, the Northeast, or the Southeast. Of course mom and pops can't pay up, but the places that have the ability to pay comparable salaries (national chains for services, large corporations with satellite offices in Hawaii, profitable large Hawaiian businesses) choose not to do so when they're paying employees in the state. Granted, the cost to lease & power commercial space will eat into salaries but there's no way those higher costs justify salaries being 25-50% below the national average. This applies to Oahu if that's the only island you want to look at.
50% below average? Good grief. Show me two similar professions working for two similar companies, one on the mainland and one on Oahu, with a 50% difference in pay. Good luck.
I have just moved from Northern California to Maui 6 weeks ago. I had to take a 25% pay cut with 1/2 less annual vacation offer in the same company. I am in the medical field. The stress level of working on Maui is no less ( or even more) on the mainland. I am working very hard on accepting the reality of living on the island.
I have just moved from Northern California to Maui 6 weeks ago. I had to take a 25% pay cut with 1/2 less annual vacation offer in the same company. I am in the medical field. The stress level of working on Maui is no less ( or even more) on the mainland. I am working very hard on accepting the reality of living on the island.
I'm curious why you would make the decision to take such a cut in pay & vacation? Was the desire to move to Maui just so strong that you felt it was worth the cut ?
And has Maui been what you expected or different? I'd be interested to hear more of your expanded story.
I am also taking a pay cut to move to the big island. I am taking a 10% per hour pay cut, plus losing a significant bonus. That's even before you account for the increased cost of living. I currently live in a medium cost of living state (Pennsylvania). The company on the big island is paying my relocation costs, and I will still be making enough to be happy, or I would never move in the first place. However, at some point, it's not about the money. I am one of those people willing to take the hit to move to the islands. I suspect there are many more like me.
Also, for the poster thinking of living on a boat- We looked into this. Dock fees for large enough boats are very high, might as well pay rent. Also, only 3 harbors in the state allow liveaboards, and 2 are in Honolulu.
For the cost of living Hawaii pays low wages for anything service or non professional. Even some professional services pay less too. Thats the trueth.
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