Google employees have agreed to accept pay cuts in exchange for the option to work from home permanently, as the tech giant adjusts salaries based on location. A company spokesperson confirmed that staff working in cheaper US cities will see their compensation reduced to reflect lower living costs.
Over 10,000 of Google's 135,000 employees have requested to work remotely full-time or relocate to another office once the pandemic subsides. The company has approved 85% of these requests, but those opting for remote work or relocation will face salary reductions. Google's 'Work Location Tool' helps employees understand the financial impact of their choices.
In competitive markets like New York and San Francisco, Google will continue to offer the highest pay tiers. Conversely, workers moving to areas with lower costs of living may receive pay raises if the new location has a more competitive job market. The average salary at Google is nearly $120,000, according to PayScale.com.
Other corporations are exploring similar policies. Morgan Stanley CEO James Gorman stated that employees working in lower-cost areas should not expect New York-level salaries. Catherine Merrill, CEO of The Washingtonian, argued that remote workers should be paid as hourly contractors.
