How much of a pay cut would you be prepared to take?

Hi,


I have recently been told I will be joining the unemployment lines as of the end of the month - I will be made redundant.

I have been looking around the job markets and there are not many positions really available. I have applied for at least 20 IT jobs and today I received my first offer - However it is a 20K pay cut.

I'm happy that i've been offered a job but i'm also quite disappointed that i've had to take such a drastic pay cut just to get an offer!

What would you people do? Would you take the role? The salary is still ok 40+ and I guess the job will be alot easier than what I am currently doing now.. However, I'm not sure how i'm going to manage being bossed around by people. I'm going to be the lackay and there wont be anymore comfy offices, delegating and nice lunches anymore... The job is also based in Carrum Downs which is FUCKIN far away from where I live (1 hour). This is a major concern as I hate travelling - I live about 5 mins drive from work.

I don't really need a job yet... however I will need one in the near future. Do I hold out until the 'near future'comes or do I start working now? Do I use my time off to take a well deserved holiday or do I take the attitude there's plenty of time to holiday when you are rich.

F

depends on your situation. If you need the money, take the job. simple. If you have some saved up then go for that well deserved holiday.

regarding the new job and pay cut - it's a tough IT market out there at the moment. A 20 percent cut is not unheard of - I've heard of bigger cuts among my consulting friends. The danger of waiting for the right IT job is that your skills may become out of date or you might forget a lot of the things you've learnt if you spend a considerable time on the bench (unemployed).

I'd take the 20% cut and use it as an opportunity to learn some new technologies.

in my opinion, i think that taking some time off would be good. i recently did change jobs into hospitality. i took roughly about a 40k pay cut. my other job was sales related, and my reasons where basically i thought that i was getting to the stage of earning a great amount of money, but my own personal sanity and social life suffering.

it was a hard decision, because i have a mortgage and car repayments, so my lifestyle in terms of extravegance did change. but mentally i feel a whole lot better.

its been almost 6 months now, and ultimately i think that i will re-enter the sales work force at a later stage of my life. i am confident that i will be able to perform at a better level that i have an overall sense of wellbeing. i know that i will be more balanced in terms of personal and professional being when that time comes.

i think that if you are questioning if you are ready or not to re-enter or take a break it might be a good idea to take that break, for a certain amount of time, just to re-adjust yourself. i think life experience it various roles whether it be social or professional is a huge benefit when it comes to succeeding in your chosen profession.

considering you are in IT it is obviously and industry that will always be aroung, but i also understand that your knowledge and training will more likely than not have to touch up on that before you re-enter if that is your choice. at the end of the day its your choice, but you dont want to turn 55 and wish you had take a year off when you were in your earlier years.

that is unless you are already 55......

I think you should take the holiday too. This job seems to have a fair few negatives to it... who knows, the perfect one could be just a couple of Saturday Age's away

Personally - I've thought about this - I couldn't take a pay cut of more than 5 grand, even if I were going to a job I loved. The amount of debt I'm in, I only just scrape by on $46,000, meaning I've kinda painted myself into a corner for the time being. In general though, I'm of the opinion that happiness and job satisfaction should come before money. It's just I don't practice what I preach

If you're having doubts and negative feelings about this job, I'd listen to your inner instincts about it. Take that nice chunky redundancy package I'm sure they've given you :D and take a bit of time off to think and re-assess your situation.

just my 2 bob.

I work in an industry where it’s pretty much crucial to stay current. A few weeks break can easily turn into a few months break, and even into a few years break, mainly because of the quick pace of change.

I also work for a progressive company that pays me an insane amount for a job I do well, however if I was to leave this company I’d expect a 50% to 75% pay cut in order to work anywhere else. Despite my experience in managing people, projects, and experience in the training and development field at the end of the day I’m a 22 year old who managed to luck into a fantastic company early on. I work damn hard for my money but the company I work for is worth it. I have a great deal of job satisfaction, and perhaps I’d think differently if I worked in a place I hated.

IMHO you should take the job; it’s always easier to find another job whilst you’re still working. Nothing prevents you from taking that job, and actively seeking better work at the same time. Most companies have a three-month trial period anyway and if you’re lucky during those three months you will find something better… If not, you keep looking. Remember those three months could have been spent as time off and you still wouldn’t have found a job.

Employment is hard to come by for most people nowadays, is the risk really worth it?

Take it take it take it. Bird in the hand baby, bird in the hand. Jobs are exactly like relationships - you're so much more attractive when you're still in one

Thanks for all ya replies..

Nezo, it's 20K dollar pay cut which is about 30% pay cut..

All of you have made a tonne of valid points and now I have alot more to think about. The IT market atm is flooded and I know you are much more appealing when you are employed.

However, I'm scared future employees are going to ask me, Friskk why did you take a pay cut and drop down 2 management levels? I don't want other employees to think i'm desperate or to think i'm selling myself short!

Hopefully something better will come along.. I still have 2 weeks to go b4 i'm made redundant! Here's hoping!

Thanks all for ya opinions.

F

Realistically I can afford up to about a $30,000 (50% ) pay cut. My debts are complete control at the moment and I am very happy about my financial/living situation. If I was a pushy barstard I am actaully eligble for a about a $7000 pay increase, but the current business climate means that I should wait until the next financial year before making that move. Like Psychokitten, if I was to leave I'd end up queuing up for jobs that would be on far less pay. But I seem to be someone who is needed enough at work, so the chances of me being let go are rather slim. Thankfully I am in a job where no-one is completely dependant about the rate which I get work done, so I can spend time on the projects I like and the odd dabble on the net too.

You're scared of what other employees are going to think of you? 8)

That statement sounds a bit strange to me. Would you really forgo $40k just because of what some random strangers might think of you?

Maybe another way to look at it is that you're not really taking a 30% pay cut (after tax anyway)...

You'll be dropping two marginal tax brackets, so after tax you'll have only taken something like a 20% to 21% hit to your pay packet.

It's still not great.. but certainly better looking than 30%.

And hell, nothing is stopping you from looking for other jobs while you're there.

Good Luck!

err...2 management positions is alot....i've rethought your situation and I'm in half a mind to say no and wait for the right one...

friskk said:

However, I'm scared future employees are going to ask me, Friskk why did you take a pay cut and drop down 2 management levels? I don't want other employees to think i'm desperate or to think i'm selling myself short!

Click to expand...

Ohh... that's an awful reason not to take the job.

Personally, as someone who is familiar with all parts of the employment process, from being the applicant to being part of the panel of interviewers right through to the recruitment side and coaching the interviewee what to say, I can see any number of creative ways around that question.

Not to mention that as an employer I'd much rather somebody who was pro-active in an unstable market and was willing to take on a new job with new skills despite significant personal loss than somebody who sat back and waited, hoping that the right job would knock on their door.

yes that is an a bad reason. absoultely no doubt about that.

personally i went from dealing with developer and socialising ( part of the package in sales) with people who were dealing with figures up and beyond the 10 million dollar mark. the whole association with people and the lavish places i used to go to i no longer did.

i moved down, right to the bottom of the rung, a mere conceierge at a hotel, and even previously i had always operated in managment perspecitve in regards to resturants and bars etc..

however, my perspective remains the same no matter what my position, and i have progessed. unfortutately this sort of mentality may not work the same in your industry as in the service industry. but like i said before i would not be a loss to have a different perspective in a different field. as long as you have goal ambition and drive, you will acheive what you want, irrespective of the field. there are many people within the world that have prooved that.

I guess I can only suggest that you don't sell youself short. If you going to be losing a lot of responsibilities and become a shit kicker then I would seriously consider not taking the job.

It's not really about the money I guess, but rather job satisfaction. Why start a job that you don't care for ? and get paid less?!