In February 2021, Spotify announced its new work model called “Work From Anywhere.” The policy lets employees determine how often they work from the office and where they work, as long as the company has an operation there. The audio streaming service also changed how it sets salary bands, calibrating them by country instead of city or region—a benefit surely appreciated by employees, around 6% of whom moved after the policy’s instatement.
More than a year later, Spotify says it’s experienced lower turnover compared to pre-pandemic levels and increased diverse representation. It’s expanded beyond New York and California and is now registered in 42 U.S. states. In Europe, the platform has increased its presence outside its Stockholm headquarters to Germany, Spain, and the Netherlands.
Spotify credits these changes to its return-to-office initiative. Attrition at the company was 15% lower in the second quarter of 2022 compared to the same quarter in 2019. What’s more, the music streaming service says its location flexibility has helped the company meet DEI objectives, with roughly half of new hires coming from a location outside of Spotify’s main hubs in New York City and Los Angeles.