Google Plans To Cut Remote Workers’ Salaries By 25%. Here’s the Impact

Companies are trying to regain control of their workforce by forcing them back into the office, despite “The Great Resignation”. Remote work is becoming more common, and data shows that remote workers can be more productive. However, remote workers still have a stigma. It is common to believe that remote workers don’t have the same commitment to their work and company as those who work in an office. Remote workers face many challenges, including discrimination, being overlooked for promotions, and having their salaries cut.

Google is a company that has been known for creating an environment where employees feel valued and appreciated. The tech giant has recently revealed that they are going to trim the salaries of remote workers by 25%. According to Reuters, workers who commute longer distances to the Google office will be subject to the largest pay cuts. Some Google employees choose to commute for up to two hours to avoid a pay cut.

Social media polls show that employees are more likely to seek out new jobs if their wages were lower because they work remotely. Nearly all polls agree that employers pay workers based on their skills and not their geographic location. While telecommuting costs have been eliminated entirely, employees still need to pay rent, utility bills, groceries, equipment and supplies while working remotely.

Before reducing the salaries of remote workers, there are three things employers should consider.

It could be considered discrimination

Employees may choose to work remotely for many reasons. Here are some reasons employees choose to work remotely.

  • They can care for their children or a family member with ease.
  • They are at high risk for serious illness from COVID-19 and its variants.
  • They are disabled and the commute is difficult.
  • They are more productive because they don’t have any distractions in the office

Erin Zadoorian is the CEO and executive editor of Ministry of Hemp. She stated that “a significant portion of the remote workforce is made up of people who were underrepresented in traditional offices before remote work became common.” These include stay-at home mothers, people with disabilities, etc.” A BBC contributor, Hannah Hickok said that remote work “intensifies the gender inequality across a spectrum by reinforcing household roles and stalling women’s earning potential and prospects of career advancement-many which are positively correlated to in-person work.”

A company’s preference for in-office workers over remote employees is known as proximity bias. Cofounder of PeopleFinderFree Eden Cheng described proximity bias as “when employees who are physically close to their company leaders tend to be more successful in the workplace.”

  • New and exciting projects and tasks for in-office workers to help propel their careers forward
  • In-office workers being given better perks
  • Remote workers are being paid less and demoted
  • Remote workers are kept out of the loop about projects, conversations and any other happenings in the office

Kia Roberts, founder of Triangle Investigations stated that “if two employees have exactly the same job description, it is easy to see how discrimination could arise in respect to salary differences.” When employees are classified differently, biases can quickly develop. Trav Walkowski (SHRM-SCP), partner and CHRO at EmploymentMetrics, stated that “if two employees have the same job description and do the exact same work, it’s easy to see how claims of discrimination could arise with respect to salary differences.” It won’t be a problem once the baby boomers are gone. It is therefore a bad idea to add remote work conditions.


It shows remote workers that they aren’t valued

Research shows that employees who work from home have a positive effect on their productivity, happiness, and performance. According to Stanford University’s study, remote workers have a higher productivity than in-office counterparts. This results in greater revenue for companies. Remote workers should therefore be paid more than their in-office counterparts.

The Washingtonian’s CEO, Catherine Merrill, has openly expressed her disapproval of remote workers. According to federal employment law, workers who do not return to work should be declassified and classified as hourly contractors. Merrill’s editorial staff was outraged at her views on remote work and went on strike. Some of them used social media to voice their disapproval for the CEO.

Ben Lamarche is the general manager of Lock Search Group. He stated that when companies consider paying remote workers less but overlook them for promotions, it’s telling those employees that they are less valuable to the company. This can lead to poor employer reputations and higher turnover. It is much more costly than paying fair compensation.


The long-term impact outweighs the short-term gain

Employers who consider cutting the wages of remote workers are only looking at the short-term benefit and not the long-term consequences. Although they may see a significant profit, the long-term effect will be far greater than the short-term benefit. Kimberly Back is a senior job content producer at Digital Vocations. She stated, “If employment trends over six to twelve months have taught us anything it’s that flexibility in remote work keeps businesses open- and that employees don’t have to accept sub-par work conditions, or compensation packages that devalue them contributions.”

Employees want to feel valued and supported, not just for their work. People who feel less valued in today’s talent-driven world will leave to find a company that offers a similar compensation package as their colleagues at work.

HEY! Could we ask you for a favor? Would you share this article with your friends? It costs you nothing and it takes just a second, but means the world to us. Thanks a lot!
Tags: