Reports of the assessment of Google’s pay calculator show that Google employees based in the same office before the Covid-19 pandemic will witness varying changes in payments if they opt for work from home permanently. The drop in salaries will hit the long commuters in the hardest way. Google has also provided a calculator to employees to oversee the impact of the move. Some employees could see salary reductions especially those who commute long distances without changing their address. This step has been taken as an experiment across Silicon Valley which can prove to be a trend-setting move for other employers as well.
Social media giants, Twitter and Facebook have also deducted salaries of remote employees who moved to less costly areas. Smaller companies like Reddit and Zillow have adopted location-agnostic pay models because of their benefits pertaining to hiring, retention, and diversity.
A Google employee, on the condition of anonymity, revealed that he would experience a pay cut of about 10% if he chooses full-time work from home. The employee who commutes to the Seattle office from a nearby county decided to work from the office after knowing this.
Many professionals have raised concerns about Google’s pay structure as to how it would impact the employees, including their families. They felt that the pay cut move is unnecessary as Google is very capable of paying the employees 100% of their prior wages. The pay cuts could go as high as 25% for remote work.
A Google spokesperson clarified that Google’s compensation packages have always been decided based on the location, and they pay their employees at the top of the local market based on where an employee works from. He also added that the company will not reduce an employee’s salary based on them going from office work to being fully remote in the city where the office is located. Employees working in the New York City office will be paid the same as those working remotely from another New York City location.