COMP NEWS – Google employees may be given the chance to work remote work from another state. The catch? They may take a pay cut for doing so.
Google employees based in the same office before the pandemic could see different changes in pay if they switch to working from home permanently, with long commuters hit harder, according to a company pay calculator seen by Reuters.
As Silicon Valley continues to wrestle with new remote work paradigms, its residential titans are often the ones who set the trends. Google isn’t the only major tech company exploring adaptive pay structures.
Facebook (FB.O) and Twitter (TWTR.N) also cut pay for remote employees who move to less expensive areas, while smaller companies including Reddit and Zillow (ZG.O) have shifted to location-agnostic pay models, citing advantages when it comes to hiring, retention and diversity.
Screenshots of Google’s internal salary calculator seen by Reuters show that an employee living in Stamford, Connecticut – an hour from New York City by train – would be paid 15% less if she worked from home, while a colleague from the same office living in New York City would see no cut from working from home. Screenshots showed 5% and 10% differences in the Seattle, Boston and San Francisco areas.
Interviews with Google employees indicate pay cuts as high as 25% for remote work if they left San Francisco for an almost as expensive area of the state such as Lake Tahoe.
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