Tech companies in Silicon Valley offer employees the chance to work from home for good if they agree to take a lower salary and move to a less expensive neighborhood. These companies say that wages will be based on the employee’s home location.
It makes sense. Companies like Facebook, VMWare, and Twitter don’t want to pay for the Bay Area cost of living if their employees don’t live or even have to live in the Bay Area. And why would a family choose to live in a high-tax, high-cost area if they don’t have to report to a job there? They could take a reduction in pay and a decrease in living expenses at the same time and perhaps get a little more room to breathe.
These employees don’t necessarily have to leave California. Just moving outside of the Bay Area could result in an 8% pay reduction, and for many, this would suit them just fine. A poll of New York, Seattle, and Bay Area workers found that 44% would happily take this deal.