Alphabet Inc (NASDAQ: GOOGL) has launched a new pay calculator for its employees that describes possible pay cuts for those who choose to work remotely (work from home or anywhere else). In addition, the company’s early results indicate it will penalize its suburban employees.
Payment reduction depends on location
The report or information obtained by Reuters indicates that Google employees who previously spent an hour commuting to the company’s Manhattan offices from Stamford will likely see a pay cut of around 15% if employees choose to work from home. On the other hand, employees who live within the New York five and choose to work from home permanently will not see any pay cuts. Reuters further stated that according to its information, the company is likely to cut 5% and 10% of the salary of employees living in the Seattle, Boston and San Francisco areas.
In addition, Google also warned its employees that they were moving far away from the office that they could suffer higher pay cuts. In addition, an employee who moved to California from San Francisco would witness a pay cut of nearly 25 percent.
Other technology companies will follow
There is considerable debate among the various technology companies about remote work (work from home or location) and compensation. In line with Google, Twitter, Facebook and LinkedIn warned all their employees that they intend to leave the expensive cities of New York and San Francisco that would see the pay cut. But on the other hand, small technology companies would pay the same compensation regardless of the location of employees.
Google claimed that location always determines its compensation package and that the company would pay at the top of the local market depending on where an employee works. Google’s new compensation is likely to affect more severely, including families. Google employs nearly 14,000 people worldwide. The new structure would only apply to employees who choose to work from home or in other remote locations after the pandemic. According to the company, the salary calculator uses the metropolitan statistical areas of the U.S. Census Bureau to calculate compensation.
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