Reply to Employees reveal Google has cut the pay of WFH staff

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[quote=Anonymous]I'm generally in the camp of you should pay people for the job that they are doing, particularly if everyone has the option to work remotely.  I do think perhaps it's worth giving a premium to people who come into the office, if coming into the office is something that is valuable to the company.  However, if two different people are remote, I'm not sure why salaries would be different.

All that being said, one nuance to consider here is on how locality pay is determined.

1) Some companies adjust pay based on cost of living.  In other words, they look at a price index based on a basket of goods.  This is typically what people think about when they think of locality pay.  This is, for example, how the federal government does locality pay.

2) Some companies adjust pay based on prevailing wages in an area.  In other words, they look at the average pay of engineers or financial analysts or lawyers in a region.  Then, they adjust pay based on this metric.  This is more controversial and it can lead to lower wages than might be expected despite a person living in a high cost of living area.[/quote]

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