by Grace Fox

Created on: January 25, 2009

You work hard, you strive to do the best you can, and you pray that you don't get laid off. The lay-offs come, and you breathe a sigh of relief when you miss the axe. But then you get called in to your supervisor's office and they say, "We want to keep you, but we can't pay you what you're making right now. So either you take a pay cut or you get laid off." What do you do?

Choice 1: On the one hand, you would like to think, "Well if they don't want to pay me what I'm worth, then I don't want to be here!" But in today's economy and unemployment statistics, you really can't be picky. To be laid off would mean filing for unemployment-which is delayed in many states-and searching for another job that may or may not exist. You can leave and file for unemployment, taking your chances that another job that pays more will hire you, and will not frown upon the time you were unemployed. To leave would mean you would throw yourself to the mercy of the economic crisis, and your family would suffer for it.

Choice 2: On the other hand, to take a pay cut may hurt your pride, and the pay cut may be so drastic that it still wouldn't cover your family's expenses. But compared to unemployment, you're better off taking your chances with the pay cut. You may not make as much as you used to-or even as much as you're worth-but to go on unemployment would be even more detrimental to your family's financial health. It may be better to simply stick it out and cross your fingers, hoping that this economic crisis won't last much longer.

So how do you survive in such a predicament?

Choice 3: Take the cut, and hopefully, after weathering the storm, you will be more than compensated for your loyalty when the economy picks up again. Your company will value your willingness to stick with them in such a financial crunch. Stick by them and you may be rewarded in the end.

Choice 4: You can also opt to go ahead and keep working there, but update your resume and post it on a job-finding site. You may not have the time you would have to job-search if you weren't working, but take thirty minutes a day to look on job websites and post your resume. Just because you chose not to be let go doesn't mean you have to sit still and not look anywhere else! You can still search for another better paying job while you continue to work. Use that time as an opportunity to work on finding another job-perhaps at another larger company. The ideal might be a larger company that may be able to pay you more for a lower position.

If your present job cuts your pay to $30K, but you have a managerial title, and a larger company has an entry-level position for $40K and room to grow, you may be better off taking the entry-level position. Your managerial skills acquired at your former position will help to promote you quickly once the economic crisis is over, and the extra money will pay your bills during the present recession. And who knows? It may pay off even more in the end to go with a larger company, even if you had to leave a managerial position for an entry level position.

This seems to be the best choice, as it allows you to remain financially stable, keeps you off of unemployment, and still keeps you open to better offers. In today's economy, you can't be too careful with your job. There are literally millions of other people seeking out your job, so it's best to keep what you have and keep your options open for something better.

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