Stripe Is Providing $20,000 Bonus To Staff Who Relocate To Much less Costly Cities, However It Comes With A Pay Discount

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Topline

Stripe is providing a $20,000 bonus to staff who transfer away from San Francisco, New York Metropolis or Seattle nevertheless it comes with a ten% pay discount, spokesman Mike Manning advised Forbes, making the e-commerce and cellular fee 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. 

Key Information

Stripe, which has greater than 2,800 employees, has relied on distant work for years and in Could announced it might rent a minimum of 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 staff who transfer to cheaper cities, together with the social media firms Fb and Twitter and enterprise software program firms VMware and ServiceNow, in line 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, which means pay is adjusted primarily based on the price of residing or value 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 prepared to just accept a decreased wage if their employer made work at home everlasting. An awesome 90% stated the identical job ought to obtain the identical pay, no matter if the particular person works remotely, however 40% stated they assist location changes. Greater than half, 53%, stated they might be “probably” or “very probably” to maneuver to a metropolis with a decrease value of residing if allowed to work at 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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