According to a company payroll calculator seen by Reuters, Googlers could see their salaries drop if they move from home to permanent employment after the pandemic
This is a trendsetting experience for other large employers in Silicon Valley. Facebook and Twitter cut salaries for remote workers who moved to cheaper areas. However, Google’s payroll tool lets employees see the impact of a move — showing that long-distance workers, especially those who travel long distances, can experience pay cuts without moving.
A Google spokesperson said: “Our compensation packages are always based on location, and we always pay in the local market where an employee works,” adding that salaries will vary from city to city and state to state. .
Smaller companies, including Reddit and Zillow, have moved to location-independent payment models, citing their advantages in terms of recruiting, retention, and diversity.
A Google employee, who does not want to be identified for fear of retaliation, often travels from a nearby state to a Seattle office and sees a roughly 10 percent cut from his full-time job, according to the company’s estimates. The Workplace Tool was launched in June.
The worker planned to work remotely, but decided to go to the office despite a two-hour drive. They said, “The pay cut is as high as I got in my last presentation. I didn’t work hard to cut the paycheck to be offered.”
Google staff could see pay cut if they opt to work from home:
Jake Rosenfeld, a professor of sociology at the University of Washington in St. Louis, said that Google’s pay structure, which examines pay, raises the alarm about who will feel the effects most, including families.
“Obviously Google doesn’t need to do that,” Rosenfeld said. “Google has pre-set a 100% salary for these employees. So it’s not like they can’t pay their employees who choose to work remotely like they used to.”
Screenshots of Google’s internal payroll calculator, seen by Reuters, show a one-hour train ride from New York City in Stamford, Connecticut – 15% less if working from home – and a coworker living in the same office in New York. York City will not see any restrictions on working from home. Screenshots showed a difference of 5% and 10% in Seattle, Boston and San Francisco.
Interviews with Googlers show that remote work rates are reduced by up to 25% if they travel from San Francisco to an almost expensive part of the state like Lake Tahoe.
The calculator reports that the U.S. Census Bureau uses metropolitan statistical districts, or CBSAs. For example, Stamford, Connecticut, New York is not a New York CBSA, although many people work in New York.
A Google spokesperson said that due to the company’s resignation, the company will not change the employee’s salary entirely to a remote location in the city where the office is located. According to the spokesperson, employees of the New York office, for example, will be paid the same wages as those working remotely from another New York.
Google hasn’t fixed this issue specifically for people from areas like Stamford, Connecticut.
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Credit@ The Guardian