Working in New York City would pay more than someone living and doing the same in a cheaper US city … [+]
If you are great at what you do then why should you be forced to earn less than you are worth just because you live outside of a big city? Doesn’t it seem reasonable that a person should be paid for what they’re worth regardless of where they live?
Location-based salaries and allowances could emerge as the next big, hotly contested topic. Corporate executives have acknowledged that a percentage of their employees will move after being given the remote option. It makes sense that people who have left family and friends in suburbs and rural towns across the country who were not geographically conducive to working for a top tech company in Silicon Valley or Wall Street should return home. Many people move to a place they love or look for new and interesting places. Housing prices, school districts, security, weather, outdoor activities, and taxes also fit into the decision equation.
We see a gap between companies. Some pay people the same no matter where they live and others said they will change the compensation based on where they are new. Location-related salaries and remuneration are now being questioned and reassessed, given the success of the massive work-from-home or anywhere-remote trend.
Last week, cInet reported that Google was offering its employees the option to request office changes or apply to be fully remote workers Work location tool. “With our new hybrid workplace, more employees are thinking about where they live and how they work,” a Google spokeswoman said in a statement. “To better equip employees with the information they need to explore their options, we developed a tool that enables all employees to request a move to a new location or to go remotely.”
Sundar Pichai, CEO of Google and Alphabet, previously shared his vision of the search giant new hybrid return to work Plans via an internal Message from the chief executive officer to his employees. The program calls for roughly 60% of Google employees to meet in the office a few days a week, while another 20% work in new office locations, and 20% are expected to work remotely. He also addressed a point that Google employees may not take well: “Whether you choose to move to another office or choose to work completely remotely, your compensation will be adjusted based on your new location. “
A number of reputable companies such as Reddit, the freewheeling community and commented platform and Zillow, the online real estate website, informed employees that they could work anywhere and make as much money as if they were in expensive cities like New York or San Francisco. This trend could continue as other companies reasonably realize that this is a great way to attract and retain employees. Their policies challenge the long-held belief that where people live should determine what they deserve.
If this trend catches on, it will be a boon for workers. The prospect of not having to live near a job or applying for a job anywhere in the United States could transform one’s career. A person stuck in a region that does not have suitable jobs would have to settle for what is available. When companies are open to recruiting talent outside the big business centers, it opens up new opportunities for many Americans.
James Gorman, CEO of Morgan Stanley, has a tough stance on remote work. Gorman said of his plan to return to the office, according to the Financial Times: “if you can go to a restaurant in New York City, you can come to the office. ”To underscore his desire for employees to return to their respective offices, Gorman said he would be“ very disappointed ”if the workers had not found their way to the office by the September 6 holiday.
It was reported that it “gave a gloomy outlook to employees who did not work regularly in the office.” While some tech companies like Reddit and Zillow have been open to paying the people of Silicon Valley wages even as they move to cheaper locations, Gorman said:If you want paid New York plans, work in New York. ”
Reddit admits that a percentage of people can choose to move. If they so wish, the company will “support the move – and not adjust its compensation downwards”. In order to show its employees support, the company is “cleaning up geographical compensation zones in the USA”. Unlike other companies, this policy suggests that “The remuneration is tied to salary ranges in high-cost areas, such as [San Francisco] and [New York]regardless of where the employees live. ”
In a company-wide announcement, Dan Spaulding, Chief People Officer of Zillow, informed his 5,400 employees: “Effective immediately, we are offering approximately 90% of our employees the flexibility to work from home as an on-going option.” Spaulding said in the memo that Zillows “This allows them to work where they are most productive, be it in the office, at home, or a combination of both. ”Spaulding also said that according to the WSJ, a person’s compensation does not change when they move to a cheaper location. He continued, “Our old preferences were exposed during the pandemic.”
VMware – a California-based publicly traded software company that provides cloud computing and virtualization software and services – announced that employees who work remotely will receive a pay cut when they leave Silicon Valley to live in lower-cost cities . According to Bloomberg, “Employees who have worked at VMware headquarters in Palo Alto, California and are going to Denver, for example, has to accept a wage cut of 18%. Rich Lang, VMware’s senior vice president of human resources, offered a positive alternative. If a person moves and works remotely, they could “get a raise if they want to move to a bigger or more expensive city”.
A view of Main Street in Telluride during peak autumn color from the aspens with a mountain … [+]
Stripe, the fast growing fintech payments company, announced a different approach to compensation. To save on expensive real estate costs, Stripe said they will pay their workers $ 20,000 to leave New York City and San Francisco. As an incentive, employees would receive $ 20,000 for moving from high-priced cities to lower-cost locations. Sounds good right? Here’s the catch: the workers who accept the offer will have to cut their pay by 10%.
In May 2020, Facebook CEO Mark Zuckerberg followed in the footsteps of Jack Dorsey, the CEO of Twitter and Square, and also promised to give his employees the opportunity to continue working remotely. Zuckerberg said, “We’ll be the most advanced remote work company of our size.” Then he added ominously that employees will have to tell their bosses when they move to another location. According to Zuckerberg, those who move to cheaper cities are moving, “can adjust their remuneration to their new location adjusted. “He added,” We will then adjust the salary based on your location. This will have serious consequences for people who are not honest about this. “
It’s a one-way street for Zuckerberg. The door is now open to Facebook to seek talent in the US and other countries. It could end badly for workers. CEOs can find the best and cheapest job seekers across the country – and possibly worldwide. Facebook can find applicants who live in cheaper places and pay them less than they would work in San Francisco.
Known to be coworker-friendly and socially conscious, Dorsey has been open about his new ability to recruit people who don’t live near the commute. “We can get talent anywhere. There are a lot of people out there who don’t want to move to San Francisco. You feel comfortable working in a much smaller office or just at home. “
The downside is that job seekers face more competition. Until now, candidates have worried that other people in their immediate vicinity will be applying for the same positions. Now they have to deal with the crowd of applicants from all over the United States
This will work against people who live in expensive cities and earn higher salaries compared to their peers in other parts of the country. They can be passed over for jobs as the company can decide that a person who works at home in Montana has the same skills as someone in Chicago but gets a much lower salary. It will be difficult for employees to negotiate salary increases as management believes they could easily find a replacement elsewhere in the United States or overseas.