If You Work From Home, Facebook Might Pay You Less

I have to give Mark Zuckerberg credit.  Instead of saying Facebook promotes working from home for employee health and safety reasons, he is brutally honest.  Working from home will save Facebook money.  How refreshing it is to have a corporate titan drop the platitudes regarding concern about employees’ well being and safety and admit the amenities he is willing to offer are all about improving the bottom line!

From the Marketwatch article:

“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.

Facebook already pays based on location, but Zuckerberg said employees working remotely must notify Facebook if they move to a new area before Jan. 1, 2021.

“We’ll adjust salary to your location at that point,” he said, noting it will be necessary to take taxes into account. “There’ll be severe ramifications for people who are not honest about this.”

I love the severe ramifications threat.  I wonder if Trump used Zuckerbergisms for his tweets about social media censorship or Trump got it from the Zuck. 

Zuckerberg is justifiably lauded as a visionary.  I don’t think he gets enough credit for his business common sense.  The coronavirus crisis is allowing companies to cut costs.  Office space is costly.  Travel is costly.  Yes, wages are generally cheaper in flyover country versus the coasts.  Earnings growth comes from revenue growth and/or cost cutting.  Expect more cost cutting announcements.  Remember, every man’s (company’s) costs are another man’s (company’s) revenue.  Cutting spending might make Facebook and other companies more money at the expense of overall economic growth.  Don’t expect a V shaped recovery. 

https://www.marketwatch.com/story/facebook-employees-may-face-pay-cut-if-they-move-to-cheaper-areas-to-work-from-home-2020-05-21

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