Stripe is providing a $20,000 bonus to workers who transfer away from San Francisco, New York Metropolis or Seattle but it surely comes with a 10% pay discount, spokesman Mike Manning advised Forbes, making the e-commerce and cellular fee processor the most recent 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.
Stripe, which has greater than 2,800 workers, has relied on distant work for years and in Might introduced it will rent no less than 100 distant engineers, saying distant employees have helped the corporate keep near prospects to allow them to tailor Stripe’s merchandise accordingly.
Stripe joins different know-how corporations which have mentioned they’ll minimize the pay of workers who transfer to cheaper cities, together with the social media corporations Fb and Twitter and enterprise software program corporations VMware and ServiceNow, in accordance with Bloomberg, which first reported the information.
Simply as many white-collar People are reconsidering the price of dwelling in costly cities if distant work insurance policies proceed, many corporations are additionally reconsidering costly workplace prices. Some corporations have had market-based wage insurance policies in place for years, that means pay is adjusted primarily based on the price of dwelling or price of labor within the space.
The job search market Employed surveyed 2,300 tech employees and located that 55% mentioned they’d not be prepared to simply accept a diminished wage if their employer made earn a living from home everlasting. An awesome 90% mentioned the identical job ought to obtain the identical pay, no matter if the particular person works remotely, however 40% mentioned they assist location changes. Greater than half, 53%, mentioned they’d be “seemingly” or “very seemingly” to maneuver to a metropolis with a decrease price of dwelling if allowed to earn a living from home completely.
Stripe Employees Who Relocate Get $20,000 Bonus and a Pay Minimize (Bloomberg)
Why Silicon Valley employees who relocate for distant work face pay cuts (Fox Enterprise)
2020 State of Salaries Report: Wage benchmarks and expertise preferences (Employed)