Working From Home Salary Won’t Be The Same As Working From Office? (Google Case Study)

Having worked remotely for well over 45 months due to the Covid-19 pandemic, Organizations all around the world have with time adapted to the shifting requirements and norms of working entirely in the online space.

While a portion of companies is looking at options to roll out permanent work from the home model for some of their employee pool, another half is looking to implement a flexible work from a home model, which would require their employees to come to the office for a set number of days in a week, however minimal.

Similarly, Google has rolled out a new tool for its employees in the US, which allows them to check/calculate changes in their pay/Compensation as they change their work locations. This comes amid the flexibility and benefits of remote work offered to Google’s employees during the Covid-19 pandemic.

With the move to a new location, Google changes employee salaries.

As a result of the Covid-19 pandemic, work models such as remote working, working from home, working from anywhere, and hybrid work models have been wildly popular.

Google was among the first big corporations to shift its massive pool of about 140,000 employees on the work-from-home model when the pandemic initially struck.

Now, to provide more flexibility on “where” and “how” employees want to work, the giant has introduced a new tool called the “Work Location Tool” on Tuesday, which lets employees estimate their pay change their work location preferences.

This indicates if employees request transfers to new markets/locations, their salaries would be set according to the rates of the local region.

For instance, if an employee employed in locations like San Francisco or New York wishes to switch their work location to a smaller market, they will be given an estimate of how their salaries might vary depending on the market, with the assistance of Google’s new tool.

“With Google’s new hybrid workplace, more employees are considering where they live and how they work. We’re developing a tool that lets any employee request to move to a new location or work remotely,” stated a Google spokeswoman.

The new tool details several considerations that companies need to make when implementing hybrid work models.

According to reports, Google will pay its employees at the top of the local market, and US employees’ equity options won’t decrease if they request a transfer.

Google Offices to Remain Shut Until September

In May 2021, Google CEO Sundar Pichai said that as and when the offices start to open,

  • A 20% of the employees will work from home permanently,
  • 20% of them could work from any Google office, including the one they are already assigned to.
  • The remaining 60% of employees will have to report to and work from the office for a few days each week.

Regardless of any scenario, the company cannot open its office before September.

Reddit has declared that they will not change their employees’ Compensation if they move to less expensive areas.