Pay Cuts for Remote Workers Are Absolutely Unconscionable

According to a Reuters report, Google recently informed employees that if they choose to work remotely, their pay could be cut significantly – some employees report cuts as high as 25%!

Pay Cuts for Remote Workers Are Absolutely Unconscionable

Making of a Millionaire creator and editor Ben Le Fort just published a piece, “If You’re Asked to Take a Pay Cut to Keep Working from Home, Do it,” where he advises such employees to take the cut rather than continue long commutes to avoid them.

Why Accepting Pay Cuts May Be the Right Choice for Employees with No Better Options

Why Cutting Remote Workers’ Pay Is Unconscionable – Part I – Value

If you can and do create the same value remotely as you do in person, employers have no ethical leg to stand on in cutting your pay for not driving to the office.

This back-of-the-envelope calculation shows that having a significant portion of their employees work remotely would allow Google to cut their costs by at least $5,000/year per employee. Thus, having workers work remotely can actually save Google thousands of dollars per employee per year!

Why Cutting Remote Workers’ Pay Is Unconscionable – Part II – Efficiency

Why Cutting Remote Workers’ Pay Is Unconscionable – Part III – Results

Cutting the pay for employees who, working remotely while enduring a pandemic, powered such incredible financial results is nothing short of flabbergasting!

High-tech companies do at times offer employees additional pay toward their rent or mortgage if they live very close to the office.

Caveat

This makes sense in that it results in employees being fresher when they get to the office, and being able to arrive quickly in case of urgent work requirements. Employers taking away such additional compensation for remote employees makes perfect sense.

If you’re a remote employee affected by such cuts, you might want to continue commuting for a short time while looking for a more ethical employer who will pay you based on the value you create rather than what they can get away with.

The Bottom Line

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