Google’s Pay Cut For Remote Workers Could Be Brutal For Retention

Google is opting for a hybrid approach in the future, allowing employees to apply to move to different parts of the country and work where they like.

However, employees moving to a less expensive area will likely see their pay reduced. In an effort to provide employees with a better idea on how a move would impact their income, Google launched a tool that shows workers how much they would be paid if they move away from large metro areas.

This controversial decision is being echoed across other major tech companies, such as Facebook and Twitter, but it could come back to bite them.

Pay cuts undoubtedly leave a bad taste in the mouths of workers, and it’s arguable whether the benefits of moving anywhere outweighs taking an income dip. 

With this, workers may begin resenting the company or even leave, which could be brutal for large companies already struggling with labor shortages.

In a survey for Recode conducted by workplace app Blind, 53% of 230 Google workers said they would consider leaving the company if they moved and experienced a pay cut.

Although there are certainly other perks for working at a notable company like Google, it still may not be enough to retain current employees.

Google says it has long based its employees’ pay on where they live, but an unprecedented pandemic seems like a logical reason to alter this policy. Even more, Google has noted record profits while its employees have worked remotely over the last year-and-a-half.