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Posted: 2020-10-29 22:13:19

Reddit’s Super Generous Work From Home Policy Sparks Bay Area Exodus Fears

From Joe Kukura at SFist - San Francisco News, Restaurants, Events, & Sports
Originally published 2020 10 29
The San Francisco Business Times reports that Reddit announced a very generous new work-from-home policy where they won’t slash your pay if you move thousands of miles away to a cheaper region. In a company blog post, Reddit said that “To support employees to live where they want to and do their best work, we are eliminating geographic compensation zones in the US. It means that our US compensation will be tied to pay ranges of high-cost areas such as SF and NY, regardless of where employees live.”They’re the first big tech company to make such a move. At companies like Facebook and Twitter, who’ve instituted work from home “forever” policies, employees have to take a pay cut if they move to a cheaper region.
Reddit’s move could set off a domino effect across the traditionally pricey Silicon Valley. Robert Half tech recruiter Adam Bennett told the Business Times that employees “will say, ‘If I can take my current salary and move to an area with lower cost of living, I can increase my lifestyle.’” And this has broader implications for the cafes, restaurants, food trucks, and “tech-adjacent” industries that are not tech, but depend on those well-heeled workforces’ lunch breaks and happy hours. The Associated Press has an excellent analysis of the damage that working from home is doing to the San Francisco economy, especially downtown, where the office vacancy rate has tripled in thus far in 2020, “to 14.1%, the highest since 2011.”
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Tags:Bay Area,Business & Tech,reddit,tech exodus