Right now, there is _zero_ reason for companies not to announce permanent work from home. It gets them positive attention and makes them part of the buzz. They are already paying the comp they are paying.
Putting aside the fact that these policies can change on a dime (it's really "permantnet work from home _for now_"), what's really crazy is that people are seriously planning to take companies at their word and are considering leaving the Bay Area and are assuming they are taking their Bay Area comp with them.
Ok, cases:
1. company does NOT to geo-based adjustment to any current employee, but DOES use adjusted salaries for new ones (in other words, path-dependent compensation). Two people, same job, different compensation. This is not that unusual in other industries but can be a source of serious resentment. Suppose a bay area employee moves to India..
2. company uses relocated employees to establish new comp packages for those geos - this will only go so far. many cases will be employees moving to less expensive areas.
3. company sets a "standard" compensation package world-wide that everyone gets - this is impossible to really execute on, or it will be very low relative to peer companies.
and so on. Employees who end up in a case 1 situation will find that after AVERAGE_TENURE they go looking for a new job and end up geo-adjusted. From a company perspective, this is a no-lose golden handcuffs situation and anyway the problem resolves itself quickly.
I tend to believe companies will walk this back as soon as covid-19 dies down, if not right away then as part of executive transitions where someone decides to "transform the business." But in the end it makes no difference - the long term trajectory, if it sticks around, is probably case (1) or some blend of (1) and (2). For developed nation engineers, case (3) is dire, the end of the career.
My office (small site within a big company) sent out a survey
about working from home.
The majority responded that they didn't want to WFH. There was a question that had several options for which composition of WFH vs WFO people wanted in the new normal. Only 25% of people picked an answer where they would WFH more often than they'd WFO.
Putting aside the fact that these policies can change on a dime (it's really "permantnet work from home _for now_"), what's really crazy is that people are seriously planning to take companies at their word and are considering leaving the Bay Area and are assuming they are taking their Bay Area comp with them.
Ok, cases:
1. company does NOT to geo-based adjustment to any current employee, but DOES use adjusted salaries for new ones (in other words, path-dependent compensation). Two people, same job, different compensation. This is not that unusual in other industries but can be a source of serious resentment. Suppose a bay area employee moves to India..
2. company uses relocated employees to establish new comp packages for those geos - this will only go so far. many cases will be employees moving to less expensive areas.
3. company sets a "standard" compensation package world-wide that everyone gets - this is impossible to really execute on, or it will be very low relative to peer companies.
and so on. Employees who end up in a case 1 situation will find that after AVERAGE_TENURE they go looking for a new job and end up geo-adjusted. From a company perspective, this is a no-lose golden handcuffs situation and anyway the problem resolves itself quickly.
I tend to believe companies will walk this back as soon as covid-19 dies down, if not right away then as part of executive transitions where someone decides to "transform the business." But in the end it makes no difference - the long term trajectory, if it sticks around, is probably case (1) or some blend of (1) and (2). For developed nation engineers, case (3) is dire, the end of the career.