Google’s recent decision will cut the salaries of employees who choose to work from home by 25%. It is an experimental step to discourage counting and encourage employees to work in the office.
Google’s salary calculator evaluation reports show that Google employees who lived in the same office before the Covid-19 pandemic will see variable salary changes if they choose to work from home permanently. Falling wages will affect workers harder in the long run. Google also provided employees with a calculator to track the impact of the change. Some workers may see pay cuts, especially those who travel long distances without moving. This step was taken as an experiment in Silicon Valley, which may also be a trend for other employers.
Social giants Twitter and Facebook also held back the wages of remote workers who moved to cheaper areas. Smaller companies like Reddit and Zillow have adopted location-independent payment models for their rental, retention, and diversity benefits.
A Google employee revealed, on condition of anonymity, that he will face a salary reduction of about 10% if he chooses to work from home full-time. The clerk who moved to an office in Seattle decided to work at the office after hearing about it.
Many professionals have expressed concern about Google’s pay structure because of its impact on employees, including their families. They felt the pay cut was unnecessary as Google can pay 100% of their previous salaries to employees. In the case of teleworking, the salary reduction can be up to 25%.
A Google spokesperson explained that Google’s compensation packages are always position-based and they pay their employees at the top of the local market based on where the employee works. He added that the company will not lower an employee’s salary because he no longer works in the office and is completely outside the city where the office is located. Employees who work in the New York office are paid the same as employees who work remotely elsewhere in New York.