Otter2569 Posted February 16, 2015 Posted February 16, 2015 Iv'e been unemployed for 6 months. The job market really sucks...especially if you are middle aged. Iv'e been called for two jobs...both pay $20,000 less than I used to make. Thats a huge difference. How much of a pay cut could / should you take?
smg15 Posted February 17, 2015 Posted February 17, 2015 Iv'e been unemployed for 6 months. The job market really sucks...especially if you are middle aged. Iv'e been called for two jobs...both pay $20,000 less than I used to make. Thats a huge difference. How much of a pay cut could / should you take? Only you can answer that question based on your rent/mortage, whether you have a car or kids. So that determines how much of a pay cut you can take when deciding on jobs. I took a $10,000 pay cut once because my unemployment ran out and I had no more options. Luckily for me I choose the right job. 1
Author Otter2569 Posted February 17, 2015 Author Posted February 17, 2015 In both cases I said that the job, opportunity, working with great people are a priority and that if the position was a great match I was flexible on the salary. That I was hopeful that we could meet in the middle somewhere. One place didnt call me back so I lost that one. I contacted the HR rep who said they wanted to see what was available in the market because even with a concession I would be maxing out their salary band. The second place is contacting the hiring manager and I am waiting to hear back. I talked to a recruited that said with my experience and education that i am at the lower middle end of the pay scale. I am not all about $$ but how many years will it take to make up $20k? answer = A LOT
Standard-Fare Posted February 17, 2015 Posted February 17, 2015 I think if the job is within the general realm of your career field, you should give it serious consideration. Don't get me wrong, the paycut BLOWS, but for both your mental health and career progression, it's better to be working than to remain unemployed. You don't want to pass this up and risk another six months of unemployment. Consider the job a temporary solution that you will only tolerate for a year at most. As soon as you start working there, investigate whether you have any realistic opportunity to climb up the ladder at this place. If not, start applying for other jobs after a couple months.
ASG Posted February 17, 2015 Posted February 17, 2015 Yes, but I guess the question is... can you get a job that will pay yoy those 20k extra? At your age? In this economy? Because the way I see it, it's better to have a job that still pays enough money but is less than desirable to NO job and going into debt because you have no income to pay the bills... So, for me, that would be the deciding factor... Not what I've earned before. You can always keep looking, after you get a job, for another one that pays better. 1
Standard-Fare Posted February 17, 2015 Posted February 17, 2015 (edited) (Sorry, double post for some reason) Edited February 17, 2015 by Standard-Fare
Author Otter2569 Posted February 17, 2015 Author Posted February 17, 2015 That is exactly how I look at it also. I can look within the organization and keep myself open to opportunities on the outside. Also there may be more work life balance and less job pressure. I know there was no people management in either of these jobs so there is less headache. I am honestly looking to work with the company (same company in both cases by the way) but I would like to obviously narrow the gap so that I can cover my living expenses.
carhill Posted February 17, 2015 Posted February 17, 2015 How much of a pay cut could / should you take? I'd take what could support a contracted lifestyle but still keep the knife (skills) honed. Heck, there was a period after my D when I worked for free to make industry contacts, not insignificant in my industry where work can be brutal. I also cross-educated and moved into doing other work. If you're asset-based, you should be able to take a contraction, do some liquidation of surplus assets and view the pay cut as temporary until another job opens up meeting your specs. FWIW, being asset-based, I've lived a fairly comfortable life on your pay cut, though I wouldn't be able to claim to support a family on it. Oh, does the new job include medical benefits? Around here, that can be significant.
Standard-Fare Posted February 17, 2015 Posted February 17, 2015 Another option, assuming you take the job and see no immediate prospects for a pay raise: After you establish yourself as a hard-working, valuable employee, you might be able to sit down with a manager and see if you can tweak your schedule somewhat to accommodate a second side job. Explain that the salary isn't sufficient and you would appreciate the flexibility to pursue that option. No idea if that's realistic for your line of work, but I've done this before with a job where I was working full-time but basically earning part-time salary. I reduced to 30/hours a week with them, performing most of those remotely. Fortunately I was able to retain benefits. The new flexibility allowed me to take on a second source of income that makes my salary more reasonable.
Author Otter2569 Posted February 17, 2015 Author Posted February 17, 2015 Its a 40 hour a week gig complete with health benefits, 401k retirement plan, pension etc. Full benefits are not what they used to be: the company subsidizes the health and dental plans but you still pay several hundred a month towards them if you have a family plan. 1
Thicke2013 Posted February 17, 2015 Posted February 17, 2015 I have always been of the mindset that any work is better than no work every time. I lost my job twice in 15 months during the automotive recession in the US because of mass layoffs. After the second time I took a job making about $38k a year less than I had made the previous 5 years. Trust me it sucked! I went from making $65+ a year with all the overtime I could handle to making $27k the first year I was working at the company I am with now. I was married with 3 kids. I worked overtime, side jobs, and even got a job delivering pizzas to help make ends meet for a while. At the time I was a welder/fabricator. After getting promoted into the office I would work 8-5 at my desk and then go to our shop and weld for another 4-5 hours to make extra money. It was tough but now I am still with the same company and I make better money than I ever have. I have been promoted 4 times in 7 years and I love my job! Working no matter what has always paid dividends for me and others I know. I also believe that being long term unemployed can look bad on a resume as opposed to someone who took a job making less. I know if I was hiring I would rather have someone who took the job making less. Shows initiative. Good luck OP. 1
Author Otter2569 Posted February 17, 2015 Author Posted February 17, 2015 Thanks Thicke and I am glad that it worked out well for you. Trust me I plan on taking this job, as I would have the first one, if they make the offer. I told the HR woman that I am interested and hoped that we could find a win/win position for the salary difference even if only to close the gap a little more than where we currently are. It was very professional and tactful. This is for a manager position so I am a bit surprised the salary is so low. They have not had much luck filling this spot and I meet all the qualifications and experience. I shouldnt think how long it will take me to make up the difference or how long ago it was when i earned that salary level...it is what it is and I need to accept it. 1
Thicke2013 Posted February 17, 2015 Posted February 17, 2015 Thanks Thicke and I am glad that it worked out well for you. Trust me I plan on taking this job, as I would have the first one, if they make the offer. I told the HR woman that I am interested and hoped that we could find a win/win position for the salary difference even if only to close the gap a little more than where we currently are. It was very professional and tactful. This is for a manager position so I am a bit surprised the salary is so low. They have not had much luck filling this spot and I meet all the qualifications and experience. I shouldnt think how long it will take me to make up the difference or how long ago it was when i earned that salary level...it is what it is and I need to accept it. Good luck to you. Sounds like you are smart and hard working so it should go well for you. If it is in sales, ask for your work to be performance based. That's what I did most recently. My company was going through a little slow period however my personal work load had never been heavier. I went to my boss and asked to keep my base salary the same while offering a larger incentive for new business/increased sales. That way, the only way I get a raise is if the company is doing well. Also, if you are able to show them on paper after say 6 months to a year that you are saving them money that would be a good time to try and make up some of the salary difference as well. One of my first raises I earned with this company came because I was in purchasing. I kept track of everywhere I was able to negotiate better pricing on goods and service contracts. After a year I put together a spreadsheet and took it to my boss and was able to show him that I alone had saved three times my salary in just one year, thus inarguably justifying myself the small raise that I was seeking. It took me 8 years to get back to where I was making the same kind of money but like I said earlier I am now making more and with a more stable job with more potential than I have ever had. Is it possible for you to use this new position to branch out and learn more about a new industry possibly? I am in an industry now that before I worked here I knew nothing about. I have been fortunate to learn skills that I can take anywhere. This may be an opportunity that will bless your life in ways that right now you can't even imagine. Best of luck to you. Let us know how it goes.
jellybean89 Posted February 18, 2015 Posted February 18, 2015 Hope it works out. I am a believer of some money is better than no money. At least with a job, if you are truly unhappy there, you can continue to look for other positions. I personally don't understand people who have no job and turn down job offers because it isn't the $$ they want. Money isn't everything - time off, cost of benefits, work environment, etc all play a role in the jobs I take. I have been capped out in my salary at my job for 5+ years; yet I get really good bonus's that make up for the lack of yearly increase. 1
pink_sugar Posted February 18, 2015 Posted February 18, 2015 TBH, if you've been unemployed for 6 months, I would take whatever job was offered to me first if you cannot afford to be unemployed much longer. You don't want your unemployment gap to get much bigger. As you said, the job market is tough and you don't know when the next lead will be.
Davey L Posted February 18, 2015 Posted February 18, 2015 I took a substantial pay cut when I changed jobs. But that was a positive decision as I'm at a time of life when I need less money and a wanted a lower stress job. I did phone them and ask for more before I started. They said they couldn't do that as my offer was at the upper limit for the role. So I then asked about a relocation package and they gave me a large one off cash payment on joining. It seems that big companies have rigid salary scales but can flex a bit on discretionary things like relocation allowances. Try for that it might ease the transition into a lower-paid role. For me it was certainly worth asking; probably the most lucrative phone call I've ever made. 1
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