Article Spotlight: Google May Cut The Pay of Remote Workers

by admin on August 20, 2021 in Ask a Recruiter, Business Intelligence, Business Trends, Dallas IT Recruiting


As everyone was growing accustomed to masks and social distancing from the onset of COVID-19, remote work was the next piece to fall into place. It only made sense in a separated world. But before the 4th surge of a novel variant began, Google and other tech giants put their spin on the remote work model. Forbes details the move here, with highlights below.

Wherever You Go, There You Are

Googlers who want to work from home will have their compensation cut based on where they live. From the article, “For instance, Googlers who reside in New York City and work remotely won’t see any reductions in pay. However, … an employee living in Stamford, Connecticut, a town that has many people who commute into the Big Apple, would be paid 15% less, if they work from home.”

Magnanimous? Not so Fast

Facebook, Twitter, and Square have offered WFH forever deals. But there’s a catch at Facebook, according to the article. “According to Zuckerberg, those who flee to lower-cost cities “may have their compensation adjusted based on their new locations.” He ominously added, “We’ll adjust salary to your location at that point. There’ll be severe ramifications for people who are not honest about this.”

Not Everyone’s On Board

But not everyone’s on board with big tech. For example, according to the Forbes article, Reddit and Zillow have a “location-agnostic” compensation scale that doesn’t change according to where an employee lives. So, cutting pay based on an employee’s location while using global arbitrage to seek IT talent worldwide is not in the recruiting materials.

How will it all shake out? An Insider article points to a 3x increase in source code, patents, IP, and client list thefts due to high turnover. Are they related? Only time will tell.


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