Google Will Show Employees How Their Pay May Change If They Move Offices | CNET

As organizations develop and implement practices for managing talent remotely, there are several implications to consider, including the impact of remote work on rewards and compensation. This topic has spurred a debate on whether workers that move to lower cost-of-living areas should face a salary change to align with labor costs at their new location. Google recently rolled out a new Work Location Tool that will enable its workers to estimate how their salaries might decrease depending on location. The company will pay employees at the top of the local market, and equity won’t decrease for transferring US employees. It is still unknown how policies around pay cuts or how transferring could affect bonuses. Some suggest that this decision will demoralize employees and lead to employee turnover. While disengagement and retention risk is a downside, it does provide employees with transparency. In any event, the decision follows news of a senior Google executive who has caused an uproar at the company after reportedly moving to New Zealand to work remotely despite opposing remote work for the company’s lower-ranking employees. As firms make decisions about remote work, they will need to consider various implications to ensure fair and equitable decisions.