Facebook CEO Mark Zuckerberg announced employees will be compensated based on work from home location. New York Post Editorial Board member Kelly Jane Torrance weighs in.
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Facebook CEO Mark Zuckerberg said employees who move out of Silicon Valley once the company reshapes its post-pandemic remote-work policies could be subject to salary reductions.
The tech giant is moving largely toward more remote and flexible work as a result of coronavirus-related office changes, Zuckerberg said in the video, adding that he expects about 50 percent of Facebook's workforce to become remote over the next 10 years.
"That means if you live in a location where the cost of living is dramatically lower, or the cost of labor is lower, then salaries do tend to be somewhat lower in those places," Zuckerberg said in a Thursday townhall video.
In a survey, 40 percent of Facebook employees said they were extremely, very or somewhat interested in full-time remote work, and 75 percent of those people would move to a different city if given the option. Moving outside of expensive areas like Silicon Valley, however, could result in a salary reduction.
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The average price of a home in Silicon Valley is upward of $2 million, according to The Mercury News.
U.S. employees have until Jan. 1 to report their remote-work locations if they choose to work from home full time rather than commute to the office, Zuckerberg said.
"We’ll adjust salary to your location at that point," Zuckerberg said. "This is important for taxes and accounting. We're mostly going to rely on the honor code for this … but we are going to put in place some basic precautions."
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He added that there will be "severe ramifications for people who are not honest about this."
The Facebook founder said the company hasn't seen very significant cost savings as a result of more people working from home amid the pandemic. People need additional benefits to work from home such as technology for their home offices and travel stipends, which offsets savings that come from changes in real estate and food expenses by having fewer people working in offices.