Working From Home Salary Will Be Different Than Working From Office? (Google Case Study)

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.
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.

With well over 45 months into working remotely due to the Covid-19 pandemic, companies all around the globe have with time adapted to the shifting requirements and norms of working completely in the online space.

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

In a similar feat, 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.

Google Changes Employee Salary With Change in Work Location

Amid the Covid-19 pandemic, work models like remote working, work from home and work from anywhere and hybrid work model concepts have wildly popularised. 

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

Now, in order to provide more flexibility on ‘where’ and ‘how’ the employees want to work, the giant has introduced a new tool called the ‘Work Location Tool’ on Tuesday, which lets an employee estimate their pay change, depending on their work location preferences.

This means if employees request transfers to new markets/locations, their compensations would be adjusted to the rates of the local region.

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

“With our new hybrid workplace, more employees are considering where they live and how they work. To better equip people with the information they need to explore their options, we’ve built a tool that will allow all employees to request to move to a new location, or go remote,” stated a Google spokeswoman.

The new tool highlights the several factors companies need to consider as they move to hybrid work models.

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

Google Offices to Remain Shut Until September

Earlier in May, Google CEO Sundar Pichai announced that as and when the offices start to open,

  • 20% of the employees will permanently work remotely,
  • Another 20% could work from a Google office, other than the one they have already been assigned to, while
  • The remaining 60% of employees will have to report to and work from the office for a few days in a week.

However, the company will not open its offices under any scenario until September this year.

Some companies like Reddit have announced that they will not change the salary compensations of their employees even if they change their work locations and move to less expensive areas.

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