Google may be working on a new salary system, WFH employees getting less

Google is trying a different model for the salaries of its post-epidemic employees. As its employees at the New York City office decide whether to return to the office or work from home, Google may offer employees a paycheck based on their decision.

Salary reductions are reported to be determined by Google’s calculator. The calculator looks at the employees of the place where they live and their distance to the office.

From what has been confirmed so far, those living in the same city as Google offices will not face any payment, even if they choose to work permanently at home.

Meanwhile, workers living in and around cities and choosing to work from home may see a pay cut. These wage reductions were reported to be as high as 25 percent.

Google’s move highlighted in a new report by Reuters. The book publishes screenshots of Google’s Internal Remuneration Calculator, stating that a Google employee living in New York City (NYC) and working for Google’s NYC office will not see a cash cut if we choose to work from home.

Google may be working on a new salary system, WFH employees getting less

On the other hand, an employee living in Stamford, Connecticut – which is an hour’s train ride from New York City – “will be paid 15 percent if he works at home.”

Some screenshots showed “a 5 percent and 10 percent difference in the Seattle, Boston and San Francisco areas.”

A Google spokesman confirmed this, saying the company’s compensation packages “have been determined by location.” The speaker also added that tariffs will vary “according to city by city and by country.”

The report states that similar wage surveys are still being conducted throughout Silicon Valley.

Other tech majors, including Facebook and Twitter, have also introduced wage cuts for remote workers now working in less expensive areas.

Companies like Reddit and Zillow have switched to local-based wage structures.

As employee experience has shown so far, new payment models have their pros and cons.

Such models now allow companies to hire people from outside the limited region.

They can do that at lower prices by reducing travel allowances and increasing diversity.

However, the effective use of the model revealed some errors. For example, not all suburbs are cheaper to live in than a large city.

Some are equally expensive, and reduced costs can affect the health of employees. Travel distance, therefore, should not be a major factor in determining wage cuts.

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