How much of a salary cut should I consider?

[Anonymous]

Curious how others are approaching this with the nonsense happening in the federal contracting space. I have built a solid career and am now in senior leadership at a government contractor. But, that just means I have further to fall. I’m on notice that depending on how the end of the fiscal year goes for new work, my position could be eliminated. So I’m applying out as much as I can. But positions at my level and current salary are few and far between.

I currently make just shy of $275. I know I won’t find a job at that level but wondering how low I really should be considering without shooting myself in the foot. Of course job is better than no job but going down to $150 or lower (when I last made that 10+ years ago) is a super hard pill to swallow. I’m also mindful of how it will look to go from a VP title position at a fairly large org to a Director position at a smaller org.

I know, DCUM will be classic DCUM and tell me to go apply to Costco, but I hope others who have been there done that can share their advice…

[Anonymous]

Can you not retire early?

[Anonymous]

Anonymous wrote:Can you not retire early?

I just turned 40 and I have a young kid. No, I can’t retire…

[Anonymous]

I am voluntarily leaving a senior leadership role at a nonprofit that receives significant federal funding and am applying for jobs that pay 50% of my current salary (~$100k). It works for our budget, which is what really matters.

[Anonymous]

Took a similar pay cut. Do what you have to do, it’s a tough market. No one needs to know your salary at director level when the market opens back up in a year. Jump back to executive level when roles open up. It happens all the time OP. One step back on your resume won’t deter you long term. Do you have a years salary saved to ride it out?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can you not retire early?

I just turned 40 and I have a young kid. No, I can’t retire…

Impressive career progress! Hope it all falls into places for you eventually.

[Anonymous]

I'm in a similar position. How long can hold out if unemployed and how much do you need?

[Anonymous]

PP is right that the answer depends on how long you can afford to be unemployed. It also depends on whether you are a two income family and how large your second income is, the cost of your lifestyle and how well you will stand up to the stress of unemployment.

You may unfortunately find yourself in a position of starting over but it’s easier to find a job when you have a job.

[Anonymous]

Anonymous wrote:PP is right that the answer depends on how long you can afford to be unemployed. It also depends on whether you are a two income family and how large your second income is, the cost of your lifestyle and how well you will stand up to the stress of unemployment.

You may unfortunately find yourself in a position of starting over but it’s easier to find a job when you have a job.

This. I’m really sorry you’re going through this, OP. You may need to take a step back from a title or salary standpoint, which is disappointing, but use your budget as a guide for how long you can go instead of benchmarking against your prior salaries or titles.

If you get laid off are you going to get a severance package? If you get a lower paying role would you be able to use the severance to supplement a lower salary for a year or two?

If your company has an employee assistance program (EAP) see if you can get some sessions with a therapist while still employed just to talk through your priorities with a third party. It sounds like you are stuck on title and salary, but is flexibility important, is staying employed important, is growing in experience important, or a lot you the breadwinner and is salary the most important factor? Would you consider moving or taking on a difficult commute for a better salary and title?

[Anonymous]

Keep in mind titles and responsibilities vary amongst Org. VP at a very large Org might well be Director level in a smaller Org with equal or more responsibility. In a larger Org it's much easier to get away with doing less because the work is spread out more and everything diced into smaller niches/silos.

Start saving, networking, and expect to take a cut. The market now is ridiculous and its taking people a really long time to find anything.

[Anonymous]

Hey Op, you shouldn't take more than 10% cut.
Start looking for headhunter to get you into a good replacement or promotion.

I have friends got higher paying jobs recently.
They are older than you, you got this!

[Anonymous]

Anonymous wrote:Keep in mind titles and responsibilities vary amongst Org. VP at a very large Org might well be Director level in a smaller Org with equal or more responsibility. In a larger Org it's much easier to get away with doing less because the work is spread out more and everything diced into smaller niches/silos.

Start saving, networking, and expect to take a cut. The market now is ridiculous and its taking people a really long time to find anything.

I'm at a Fortune 100 company. I find smaller orgs give out VP titles like candy. Our VP has one of the smallest people under management groups of any VP and has about 200. A Director might have as few as 10 or maybe up to 30 or so. We have two further levels of Director.

We hire people that are VPs or Directors on the outside and they become Senior Managers.

[Anonymous]

I would take zero cut. Once laid off a different story. In late 2016 I knew I be let go in next few months. Trouble is making 245k with a 120k bonus and 8 percent 401k match.

I did get canned in Feb of next year. But they paid out my 120k bonus, got 8 weeks severance plus unemployment. I ended up with a 165k job. Ouch. But when unemployed 165k not bad, but not quitting 365k for it one day earlier than I have too.

Why quit. BTW at 40 that salary it’s hard out there. I am back near prior level took me three years of looking maybe 3,000 applications and 300 interviews. But thank god I had that 165k Job with benefits those three years. But still pissed I lost 200k income for three years from a randon Covid layoff

[Anonymous]

I'd do some financial modeling. Obviously $150 is a hell of a lot better than zero, but you don't want to jump to that if business picks up at your current job. On the other hand, after 6 months of unemployment you might be absolutely delighted to have that.

You can afford to be choosy now. The closer you get to the end of the year, or the worse things look, the lower I'd consider.

Also, you can go through the process and get the offer and then decide to turn it down. By the time a company extends an offer you might know more than you do now. It is also good practice in interviewing and going through the process.

[Anonymous]

Who cares about title. Title means different roles at different orgs. Some places Director is higher than VP, others VP higher.

Right now you can be choosy. So I would only apply for roles you would actually take right now. If you get to the point where you feel you will be laid off or you see the financials and realize they most likely can't keep you start applying for roles that pay less.

I had to do this before. I had been equivalent of a Country and then Regional Director of 8-and 9-figure programming. I needed to change fields and went down to a manager role and worked my way up. It was hard at first, but I saved a lot of money and lived within my means.

Start budgeting now for the lower salary and cut everything you can. If you get more $, great, and if not, then you saved some money the next 6 months and can life off a lower salary.

Right now it is really hard out there. Everyone is applying. Use your networks and let people know you are looking. Are there any conferences you can attend where you can network a bit?