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Topline
Stripe is providing a $20,000 bonus to workers who transfer away from San Francisco, New York Metropolis or Seattle however it comes with a ten% pay discount, spokesman Mike Manning informed Forbes, making the e-commerce and cell cost processor the newest tech firm to implement pay cuts for employees who selected to relocate to cheaper cities as distant work insurance policies are prolonged due to the pandemic.
Stripe cofounders and siblings John and Patrick Collison in 2018.
Key Information
Stripe, which has greater than 2,800 employees, has relied on distant work for years and in Might announced it might rent at the least 100 distant engineers, saying distant employees have helped the corporate keep near clients to allow them to tailor Stripe’s merchandise accordingly.
Stripe joins different know-how firms which have stated they’ll minimize the pay of workers who transfer to cheaper cities, together with the social media firms Fb and Twitter and enterprise software program firms VMware and ServiceNow, in keeping with Bloomberg, which first reported the information.
Additional Background
Simply as many white-collar Individuals are reconsidering the price of residing in costly cities if distant work insurance policies proceed, many firms are additionally reconsidering expensive office costs. Some firms have had market-based wage insurance policies in place for years, that means pay is adjusted primarily based on the price of residing or price of labor within the space.
Tangent
The job search market Employed surveyed 2,300 tech employees and located that 55% stated they might not be keen to simply accept a lowered wage if their employer made earn a living from home everlasting. An awesome 90% stated the identical job ought to obtain the identical pay, no matter if the individual works remotely, however 40% stated they help location changes. Greater than half, 53%, stated they might be “doubtless” or “very doubtless” to maneuver to a metropolis with a decrease price of residing if allowed to earn a living from home completely.
Additional Studying
Stripe Workers Who Relocate Get $20,000 Bonus and a Pay Cut (Bloomberg)
Why Silicon Valley workers who relocate for remote work face pay cuts (Fox Enterprise)
2020 State of Salaries Report: Salary benchmarks and talent preferences (Employed)
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