Jobs & Careers >
Career Path & Goals
Get a Widget for this title
RSS FeedShould you take a pay cut or leave your job?
Results so far:
| Pay cut | 50% | 219 votes | Total: 439 votes | |
| Leave | 50% | 220 votes |
Pay cut
Write now
Print
Invite a writer™
Add to FavoritesWorkplace unrest can be a major distraction and a huge point of stress in your life, as well as the lives of your family if you have one. When there comes a point that the organization is not doing well or the work that you do is no longer being appreciated, it can create a major reduction in personal morale. In situations where you are asked to take a pay cut, the frustration can mount to the point where you want to just throw up your hands and walk out. You want to shout, "I don't need this!" and storm out the door in a very Hollywood movie style, leaving your boss to wish that they had never offended you by offering a pay cut.
This is not a good strategy, and the reasons are obvious. Even a bad job pays the bills. A dysfunctional workplace can be extremely miserable, and sometimes being unemployed can seem much more tempting than sticking it out. By nature we want to purge or walk away from the unpleasant situations in our lives. However, being unemployed means no income is coming in at all. Some people can sustain for some time in this situation, but others find that their stress level actually increases when they are unemployed. Suddenly that terrible job doesn't look so bad after all.
There is nothing that ever prevents you from looking for a job. Therefore, when the work situation gets intolerable, go ahead and start looking for a job. It is a lot easier to look for a job when you still have a job than when you are unemployed. If you are not working, then you may take the first thing that becomes available, which may not be an ideal situation. If fact, you may end up in a similar situation as when you left your old job that wasn't going well.
Overall, if you asked to take a pay cut, don't freak out. Remember that you still have income and then decide whether it is time to start looking. Sharpen that resume, get out there, and start looking. Meanwhile, you can still pay the bills and not feel the stress of being out of work. These days the economy is not doing well anyway, so hanging onto a job, even a bad one, may be preferable to walking away.
Learn more about this author, Todd Pheifer.
Click here to send this author comments or questions.
Leave
As the world heads into recession many companies face falling sales and profits along with an increase in spare capacity. A falling bottom line may be the motivation for an employer to offer employees the option of a pay cut as an alternative to leaving. In some cases, a pay cut carried out across the board provides a temporary means for the business to survive. In other cases, it may be indicative of a company exploiting the generally poor economic climate to reduce costs and increase profits. There is rarely a good reason to take a pay cut, but under certain circumstances it may be the best available option.
When a company offers a pay cut it is a signal that something is wrong. Perhaps the business has found itself in financial trouble. Financial problems could be the result of a deteriorating financial climate and falling demand. The company may pursue a cost reduction policy to help stay in business a little longer. The business lets some employees go and offers a pay cut to others. It may be a simple offer to stay for less or to leave. In this scenario it may be a matter of time before the business folds.
In a poor economic climate jobs become hard to find. As a rule it is better to scan the market for opportunities and explore other options before making a final decision.
When there is a severance package involved or the alternative employment opportunities are good then the better choice is usually to leave. Review the situation carefully. Is the cost cutting strategy likely to succeed? Is another pay cut waiting on the horizon? Is the business likely to survive?
If the business is sound but simply trying to exploit the poor economic conditions then they don't deserve to retain their staff. Human resources make or break a business. Cutting back on employee costs to increase profits reflects a poor attitude by a business towards its employees. Under circumstances such as these the best option is to leave.
Other reasons for being offered a pay cut include a demotion as a result of poor performance or losing a political battle. This is a serious indication that it is time to leave. Once your career moves into reverse you are in the wrong company. Do what you may, it will be impossible to reverse the negative connotations created. A fresh start is the best option. Perhaps this company is just not the one for you.
There is often more to a job than just the pay. The working environment, the culture of the organisation and the people that you work with are important factors to take into account. Consider these carefully before making a final decision. If you hate your job then this may just be the final straw, but if you are happy at work then take a little more time to consider.
A slightly different scenario could be on the cards. The threat of deflation as a result of rapidly deteriorating economic and trade conditions is a very real possibility. Under these conditions, prices of goods and services across the board begin to fall. Businesses are forced to reduce costs and employment and a deflationary spiral follows. Under these circumstances pay cuts are inevitable and must be accepted! However, political leadership should be able to act to prevent this scenario from occurring.
As a rule, the first choice when offered a pay cut should be to seek a better alternative. If a substantial severance package is offered then the motivation to leave is stronger. A package can be used to start a small business. Find a gap in the market that you can perform and do it. If the prospects of alternative employment are slim, then you may be forced to accept the pay cut, but as a rule, explore every option first.
Learn more about this author, Barry Marcus.
Click here to send this author comments or questions.
Difference of opinion? Debate now.
