Location-Based Pay at Google


In August 2021 Google revealed that the company was considering applying a location-based pay scheme which could lead to employees who opt to work from home permanently experiencing a pay cut of up to 25%. The policy would apply to remote workers who lived in low-cost living areas. This case covers the proposed compensation policy and asks students to evaluate the pros and cons of the policy in order to understand whether this is a desirable policy for Google to implement.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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