by Ken Bingenheimer

Created on: March 27, 2009

There's no black and white on this issue, it depends totally on the circumstances.

Are you getting a pay cut because you've done shoddy work? You probably ought to find a job better suited to your interests and talents. But don't leave until you have that new job.

Is your employer cutting everybody's pay because the economy is on life-support and this is a way to avoid laying people off? Take the cut and congratulate yourself on still having a job. This is not the time to be voluntarily unemployed.

That said, circumstances can alter the equation.

Are you in a high-demand field where even now there are jobs to be had? Have you been getting calls from recruiters? Do most people in your field make considerably more than what you're being asked to accept? How stable is your company? That is, how much assurance do you have that you'll have a job at all in a few months?

Even if there are jobs out there and they pay more, there's one more thing you really need to ask yourself: How much do you enjoy your current job and how likely are you to find yourself in as good a situation elsewhere? Money is not the most important issue. If you enjoy your job and your work environment it is better for your mental and physical health to stay there and make less than go somewhere where you would earn more but hate what you're doing.

On the other hand, maybe you hate the job you have now. Your boss is a psycho, they demand that you put in 80 hours a week, and they treat you with contempt. Why haven't you left already? If the cut in pay is what finally moves you to action, so be it. Get out. If you don't have anything else lined up you can get by on unemployment compensation for awhile. Leaving a job voluntarily because your pay was cut is a valid justification in the eyes of the unemployment people. If you don't think you can get along on unemployment then it's time to tap that cash reserve you've been building up. And if you've been miserable in your job and haven't been building up a cash reserve you're a fool.

There's no cut and dried yes or not here. But if you decide to stay, continue to do your best work. Don't use a pay cut as justification to start cutting corners and acting lazy. Show them that you're committed.

And if you decide to leave, do it the right way. Don't walk out in a huff. Explain to your manager why you consider the cut unacceptable and give notice. Then do your best until the moment you walk out the door. You want to be remembered favorably.

The bottom line is that you've got to make your decision based on what is going to be best for you. And either way, earning a repuration as a class act is definitely in your best interest.

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