After the employer is convinced that this candidate can add value to the company, then only they negotiate the salary and then only these considerations of cost of living back home, family status, etc is taken into account.

But I do agree that some employers have it backwards. But as they say, cashflow is king, so sometimes, companies have no choice and have to make do with what they can to survive. But what goes around, comes around. The wrong people will sink the company in the long run.

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Beauty lies in the eyes of the beerholder.