Facebook employees have the opportunity to work from home permanently, but can expect a pay cut if they move to cheaper areas to continue their work.
Facebook CEO Mark Zuckerberg announced via livestream that he expects about 50 percent of the company’s 50,000 employees to work remotely within the next five to ten years.
A blind poll found that 66 percent of tech hubs like Facebook, Twitter and Uber would move from larger cities if working from home becomes permanent.
Similarly, Spotify followed Twitter and Facebook’s leadership to allow staff to work from home until the end of the year.
Some employees will be able to work remotely full-time and will need to notify Facebook of any site changes by January 1
But employees who hoped to bring their large Silicon Valley paychecks if they moved to a less expensive region have encountered a warning.
Facebook CEO Mark Zuckerberg (pictured) revealed that employees will be able to work from home permanently, but will take a pay cut based on their area’s cost of living
“That means if you live in a place where the cost of living is dramatically lower, or the labor cost is lower, then wages tend to be slightly lower in those places,” Zuckerberg said.
“We will adjust the salary to your location at that time. There will be serious consequences for people who are not honest about this,” he added.
As of 2018, the median staff salary of the giant tech company was more than $ 240,000 per year.
Zuckerberg has taken a base salary of just $ 1 over the past three years, but received $ 22 million in compensation as security in 2018. Nearly $ 3 million went toward private jet aircraft, according to Reuters.
Menlo Park, the California city where Facebook is headquartered, has a median house price of $ 2.4 million.
Facebook’s headquarters is in California’s Menlo Park, where the median price is $ 2.4 million
The company’s New York office resides in Manhattan (pictured) where houses sell for a median price of $ 945,000
The median income in the greater Bay Area is nearly $ 1.5 million less to $ 928,000, according to Zillow.
Facebook’s New York City office is located in Manhattan, which has a median income of $ 82,459 and a median price of sold homes is $ 945,500.
The median price for homes currently listed is $ 1.5 million in Manhattan.
Zuckerberg said the transition to working remotely helps diversify Facebook’s staff and hire the pool.
“When you limit employment to people who either live in a small number of large cities or are willing to move there, it cuts out many people who live in different communities, different backgrounds or may have different perspectives,” he said.
“Certainly being able to recruit more broadly, especially in the US and Canada to start, will open up many new talents that previously would not have considered moving to a big city.”
Zuckerberg (pictured) said there will be “serious consequences” for employees who lie about their home address to retain their Silicon Valley salary
If given the alternative, employees at large Silicon Valley companies and other major hubs appear to be moving away from the lively centers.
A study by Blind asked staff from more than 4,000 companies in Seattle, San Francisco and New York whether they would relocate after working from home as part of the COVID-19 crisis.
New Yorkers were the most eager to escape, with 39 percent saying they would leave if given the chance.
Results vary by company and region and the majority of respondents (2,768) worked in the Bay Area.
Thirty-three percent of Bay Area residents said they would stay, 27.49 percent said they would move out of town, and 27 percent said they would move out of California.
Eleven percent said they would even leave the United States.
One-third of New York workers also said they would stay in the city, 17 percent said they would leave the city, and 35 percent said they would leave the state.
Fifteen percent said they would move abroad.
In Seattle, 37 percent said they would stay in the city, 19 percent said they would leave but stay in state, and 26 percent said they would move out of state. Sixteen percent said they would leave the country.
Fourteen percent of workers said they anticipated never going into the office again, and 44 percent said they only imagined going in once or twice a week.
Only 15 percent said they imagined going back in every day.
Of the 354 Amazon employees from Seattle who responded, 32 percent said they would stay in place, 24 percent said they would move out of the city, and 26 percent said they would leave the state.
Thirty thousand percent of Bay Area employees said they would move out of state.
Two-thirds of Uber employees interviewed in the Bay Area said they would move either out of town or out of California.
A quarter of Facebook employees surveyed in the Bay Area said they would move out of state.
Music streaming giant Spotify is the latest technology company to announce that it will allow its employees to work from home until at least the end of 2020 when countries begin to lift the coronavirus lock.
“Yesterday, we announced the extension of our work-from-home arrangement for all Spotify employees globally,” a spokesman for the company told DailyMail.com.
‘We will continue to follow the local government-by-city guidelines and take a step-by-step approach to opening our offices when we feel it is safe to do so.
“The health and safety of our employees is our top priority.
“No employee will have to come into the office and can choose to work from home at the end of the year.”
Spotify has confirmed that it will allow its 4,400 employees to work from home until the end of this year
The Swedish company Spotify says it employs 4,405 full-time employees. It says it has offices in 79 countries and territories around the world.
About half of the workforce – 2,121 employees – is based in the United States.
The company employs 1,437 full-time employees in Sweden.
On Thursday, Zuckerberg’s Facebook livestream feed closed while he talked to employees about his prediction that more than half of the company will work from home permanently in 2030.
He was almost done with his discussion of the future of the company’s 50,000-person workforce during a live stream on Thursday when it suddenly cut out and a bug screen appeared.
Zuckerberg succeeded in completing most of his discussion, which began by saying: ‘I think it is clear that COVID has changed a lot about our lives. It really includes the way most of us work. ‘
“We’ve already told people that by 2020, they can choose to work from home,” he said, adding that 95 percent or more of the company’s employees currently work from home.
“We will be the most forward-looking company on long-distance work on our scale, with a thought-provoking and responsible plan for how we do this,” Zuckerberg said.
“But we will do this in a measured way over time.”
Mark Zuckerberg’s Facebook livestream feed was shut down (error screen, right) while talking to employees about his prediction that more than half of the company will work from home by 2030
The billionaire then proceeded to give his prediction for the future. “I think it’s very possible that over the next five to ten years, about 50 percent of our people can work remotely.
“It’s not a goal or goal,” Zuckerberg said, before pointing to the survey results from Facebook employees who found that there was a lot of demand to continue working from home.
With the permanent remote work, Facebook has outlined criteria for an individual’s eligibility.
First, an employee must be experienced. Second, Zuckerberg said that employees must have “very strong recent achievements, which include two expectations that meet all or above grades”.
Zuckerberg said employees must be “part of a team that supports remote work.”
Finally, “you have to start by getting approval from your team leader,” Zuckerberg added.
Zuckerberg’s announcement comes as companies (file image, employees working from home) adapt to the effects of COVID-19, which is also expected to reshape the future of office space following the pandemic retreats
Zuckerberg’s announcement comes as the companies adapt to the effects of COVID-19, which is also expected to reshape the future of office space following the pandemic retreats.
Shopify also recently made a similar announcement.
Tobi Lutke, CEO of Canadian e-commerce company Shopify, on Thursday declared the end of “office-centric” and decided to keep corporate offices closed until 2021, which means that most employees can work remotely permanently after that.
Ottawa-based Shopify, which briefly became Canada’s most valuable company earlier this month, had more than 5,000 employees and entrepreneurs worldwide as of December.
“Today, Shopify is a digital by default,” Lutke, who is also the founder of Shopify, said in a tweet. “We will keep our offices closed until 2021 so we can rework them for this new reality. Office centricity is over.”
Square Inc and Twitter recently allowed employees to continue working from home permanently.