American financial services and SaaS company, Stripe is doling out $20,000 to its employees if they opt to relocate from Seattle, New York, San Francisco and other costly cities, where its offices are located. However, those who do choose to relocate will also have to suffer a 10 per cent pay cut.
The Company wishes for its workforce to be able to decide what is most suitable for them.
Earlier this month, VMWare also allowed its employees who wish to opt for a permanent WFH arrangement, to leave Silicon Valley if they so desired, and take a pay cut based on the city they wish to relocate to. For instance, those choosing to relocate to Denver will take an annual pay cut of 18 per cent, while those relocating to San Diego will take an eight per cent cut in their salaries.
Post the pandemic, more people have opted to work out of small towns and cities the world over. With many companies extending the work-from-home arrangement till 2021, employees have returned to their hometowns and are working comfortably from their little home office workspaces in the new normal.
Many employees have realised that they can save a lot by not commuting to work. In the US, research shows that employees who once travelled long distances to work are now saving huge sums of money. The US, in general, has saved over $90 billion, which would have been otherwise spent on fuel and travel.