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Google cuts the salary of its employees who work from home

Similar moves are being tested by several companies in Silicon Valley.

3 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

The home office has revolutionized the cultures of companies both large and small. Right now, many of them are testing hybrid models that allow their employees to go to corporate offices and work from home, in addition to completely remote models.

Before 2020, it was a novel idea to apply telecommuting. In just one year, 88% of 800 HR executives surveyed redefined their workspace and required or encouraged staff to work from home.

With the arrival of the vaccine and other variants of the virus, the question is whether to return to corporate offices and how employers see this new paradigm. In the midst of this, information about Google’s policy has been leaked.

The tech giant apparently created a pay calculator that allows its employees to see the effects they would have on their salaries if they decide to work remotely or from home.

The workers of the Alphabet subsidiary would see reductions in their salaries ranging from 10% to 25%, according to information collected by Reuters. However, Google is not the only technology firm that is applying such cuts — Facebook, Twitter and Microsoft are also testing the reduction of wages of people who work from cheaper areas to live.

Related: 5 Great Companies That Allow Their Employees to Work From Home

What do employees say?

An employee of the company, who asked the news agency not to be identified, explained that he normally travels to the Seattle office from a nearby place. He says his salary would be reduced by 10% if he works from home full time.

The worker who did consider telecommuting eventually gave up on the idea, despite having to travel two hours to get to the corporate office. The employee says the amount cut would be as high as the amount he got for his most recent promotion.

What does Google say?

The spokespersons for the technology company explained that the firm’s compensation packages have always been determined by location, also explaining that employees are paid the higher salary in the local market where they work.

On the other hand, they affirmed that those who decide to work from home and live in the city where the offices for which they work are located will not receive these type of cuts.

In essence, the salary of a company employee living in Stamford, Connecticut, who is an hour from New York City by train, would be reduced by 15% if he works from home. Others would see their payments reduced by between 5% and 10% in places like Seattle, Boston and San Francisco. But those who decide to work from home in New York City, where the office is located, would not see these kinds of readjustments, according to Reuters.

Related: 10 Business Books That’ll Help Your Company Adapt to the New Normal

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