Google employees working from home can see wage cuts – Silicon Valley

Daniel Kay Reuters

New York – According to a company wage calculator seen by Reuters, Google employees who were based in the same office before the pandemic were hit harder by long commuters when they switched from home to work permanently. , Wages can change in various ways.

This is an experiment conducted throughout Silicon Valley and often sets trends for other large companies.

Facebook and Twitter have also reduced wages for remote employees moving to cheaper areas. Meanwhile, smaller businesses such as Reddit and Zillow have moved to a location-agnostic wage model, citing employment, retention and diversity benefits.

Alphabet Inc’s Google stands out because it provides a calculator that allows employees to see the impact of movement. However, in reality, some remote employees, especially those who commute from long distances, may experience wage cuts without changing their address.

“Our compensation package is always determined by location and we always pay at the top of the local market based on where our employees work,” a Google spokeswoman said. , Added that it varies from state to state.

One of Google’s employees who asked not to reveal their identity for fear of retaliation usually commute to a Seattle office from a nearby county, and the company’s job quote suggests that they will work full-time at home. Wages can be reduced by about 10%. The location tool was released in June.

The employee was considering remote work, but decided to go to the office despite a two-hour commute. “It’s a wage cut as high as I got from my recent promotion. I didn’t make much effort to get promoted and lower my wages,” they said.

Jake Rosenfeld, a professor of sociology at Washington University in St. Louis and studying wage decisions, said Google’s wage structure warns about who, including family members, will have the most serious impact. ..

“The obvious thing is that Google doesn’t have to do this,” Rosenfeld said. “By definition, Google pays these workers 100% of their previous wages, so it’s not that workers who choose to work remotely can’t afford to pay as they used to.”

A screenshot of Google’s internal payroll that Reuters saw shows that if an employee in Stamford, Connecticut (one hour by train from New York City) works from home, while a colleague in the same office lives in New. It shows that the salary will be reduced by 15%. The city of York will not see any savings from working from home. The screenshots show a difference of 5% and 10% in the Seattle, Boston, and San Francisco regions.

Interviews with Google employees show that leaving San Francisco and going to nearly as expensive areas of the state as Lake Tahoe can reduce remote work wages by as much as 25%.

The calculator states that it is using the US Census Bureau’s Metropolitan Statistical Area (CBSA). For example, Stamford, Connecticut is not in New York City’s CBSA, even though many people living in New York City work in New York City.

A Google spokesperson said the company would not change employee salaries based on moving employees from office work to a completely remote location in the city where the office is located. Employees working in New York City offices are paid the same as employees working away from other locations in New York City, for example, according to a spokeswoman.

Google hasn’t specifically addressed the issue of commuters from areas such as Stamford, Connecticut. Google employees working from home can see wage cuts – Silicon Valley

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