Alphabet Inc’s Google introduced new salary plans which cut the pay of their remote employees’ post pandemics. The New York office staff are given the flexibility to decide to work remotely or return to the office which will directly reflect their salaries as per Google.
Google offers employees a calculator that allows them to see the effects of the decision they make.
The calculator takes into account the area employees live in and their distance of commuting to the office. From what has been confirmed so far, those living in the same city as the Google offices will not experience any pay cut, even if they chose to work from home permanently but long-distance commuters who choose WFH permanently could experience a pay cut as high as 25%
“Our compensation packages have always been determined by location, and we always pay at the top of the local market based on where an employee works from,” a Google spokesperson said, adding that pay will differ from city to city and state to state.
Google’s new salary model was reported by Reuters. The report cites screenshots of Google’s internal salary calculator.
The screenshot reveals that a Google employee living in New York City (NYC) and working in Google’s NYC office will see no pay cut if they opt to work from home.
“What’s clear is that Google doesn’t have to do this, Google has paid these workers at 100% of their prior wage, by definition. So it’s not like they can’t afford to pay their workers who choose to work remotely the same that they are used to receiving”Jake Rosenfeld, a sociology professor at Washington University in St. Louis said
The new proposed salary model received both positive and negative reviews from its employees and the practical application of the model has revealed some flaws.
For instance, it’s as expensive to live in some adjoining cities as to live in the main city. So with equal expense, and a pay cut can negatively affect an employee’s financial wellbeing. The travel distance, thus, should not be the primary factor in deciding pay cuts.
Google is always known for setting a trend in its work environment. Meanwhile, Face and Twitter also introduced pay cuts for their employees’ moving into less expensive areas, could this be a new trend in silicon valley?