Google employees primarily based in the identical workplace earlier than the pandemic could see completely different modifications in pay in the event that they swap to working from home completely, with lengthy commuters hit more durable, in keeping with an organization pay calculator seen by Reuters.
It’s an experiment happening throughout Silicon Valley, which frequently units developments for different massive employers.
Fb and Twitter additionally lower pay for distant employees who transfer to cheaper areas, whereas smaller corporations together with Reddit and Zillow have shifted to location-agnostic pay fashions, citing benefits in relation to hiring, retention and variety.
Alphabet Inc’s Google stands out in providing employees a calculator that enables them to see the results of a transfer. However in apply, some distant employees, particularly these who commute from lengthy distances, could expertise pay cuts with out altering their tackle.
“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 stated, including that pay will differ from metropolis to metropolis and state to state.
One Google worker, who requested to not be recognized for concern of retaliation, sometimes commutes to the Seattle workplace from a close-by county and would seemingly see their pay lower by about 10% by working from home full-time, in accordance estimates by the corporate’s Work Location Software launched in June.
The worker was contemplating distant work however determined to maintain going to the workplace – regardless of the two-hour commute. “It’s as high of a pay cut as I got for my most recent promotion. I didn’t do all that hard work to get promoted to then take a pay cut,” they stated.
Jake Rosenfeld, a sociology professor at Washington College in St. Louis who researches pay dedication, stated Google’s pay construction raises alarms about who will really feel the impacts most acutely, together with households.
“What’s clear is that Google doesn’t have to do this,” Rosenfeld stated. “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.”
Screenshots of Google’s inner wage calculator seen by Reuters present that an worker residing in Stamford, Connecticut – an hour from New York Metropolis by prepare – can be paid 15% much less if she labored from home, whereas a colleague from the identical workplace residing in New York Metropolis would see no lower from working from home. Screenshots confirmed 5% and 10% variations within the Seattle, Boston and San Francisco areas.
Interviews with Google employees point out pay cuts as excessive as 25% for distant work in the event that they left San Francisco for an nearly as costly space of the state akin to Lake Tahoe.
The calculator states it makes use of US Census Bureau metropolitan statistical areas, or CBSAs. Stamford, Connecticut, for instance, shouldn’t be in New York Metropolis’s CBSA, though many individuals who reside there work in New York.
A Google spokesperson stated the corporate won’t change an worker’s wage primarily based on them going from workplace work to being absolutely distant within the metropolis the place the workplace is situated. Employees working within the New York Metropolis workplace shall be paid the identical as these working remotely from one other New York Metropolis location, for instance, in keeping with the spokesperson.
Google didn’t particularly tackle the problem for commuters from areas akin to Stamford, Connecticut.