Taking a Pay Cut for New Job

[Anonymous]

I could really use some advice.

I have what is - on paper - a great job (good title, salary, etc.). In practice, it also like a lot about my job - colleagues, flexibility, etc. But, the company is not particularly stable and the management is in a certain amount of turmoil. So, needless to say, I'm not feeling completely secure where I am.

With that background, I've been offered a new job, but at a significantly lower salary (say, $27k less). This is at a larger, well known company (so, more stable I'd say).

I'm struggling with what to do. I know there are pros and cons each way, but does anyone have any advice about taking a pay cut? I'm worried about "re-setting" my salary and having to "dig out" of that new number as I progress at the new job…or later jobs. But I'm also worried about the stability of my current company (there will be lay offs, etc.).

Help and thank you!

[Anonymous]

I wouldn't take a paycut like that unless I really needed a job asap and I knew the old one was ending. I have taken a paycut before, but that was to switch career sectors/focus and because I knew it would give me potential to switch back at higher pay.

[Anonymous]

Depends on your priorities, OP.

[Anonymous]

What is the market pay for the role? Are they low balling you or are you overpaid compared to the market?

[Anonymous]

I took a pay cut, but at a small start-up company that was doing interesting work. I find it odd that the company that's offering a low salary is a large stable company. Why do you think that is?

Also, it took me a decade to get back to a competitive pay and that was through getting a government job.

[Anonymous]

$27k less than how much? $100k to $73k - I wouldn't unless the existing job was really bad. $200k to $173k - not as big of a deal.

If you take a pay cut, try to negotiate more paid leave per work period, a higher 401k match, or more sick leave.

[Anonymous]

Anonymous wrote:I took a pay cut, but at a small start-up company that was doing interesting work. I find it odd that the company that's offering a low salary is a large stable company. Why do you think that is?

Maybe the reason the company is unstable is because they overpay their employees.

[Anonymous]

I was recently in this position. The first job was easy, stable, and had good management and people. But the work was mind numbingly boring. I took a 10 percent pay cut to move to a more interesting job that aligned more with my interests.
I justified it to myself by saying that I'd never advance doing a job I hated because I could be great at it. I'll be able to advance better in the new job.

You've got to decide if the money is worth the stability. This depends on how truly unstable your current job is. Stability is worth something in the long run. I made the calculus that the short term hit would pay off in the long run.

Only you can make this calculation for yourself.

[Anonymous]

Anonymous wrote:$27k less than how much? $100k to $73k - I wouldn't unless the existing job was really bad. $200k to $173k - not as big of a deal.

If you take a pay cut, try to negotiate more paid leave per work period, a higher 401k match, or more sick leave.

THIS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$27k less than how much? $100k to $73k - I wouldn't unless the existing job was really bad. $200k to $173k - not as big of a deal.

If you take a pay cut, try to negotiate more paid leave per work period, a higher 401k match, or more sick leave.

THIS.

OP here: the $ amount is closer to the latter (approx. $200 to approx $173).

[Anonymous]

How long would it take you to find a new job if you were laid off? If that's a legitimate concern, I'd be inclined to go with the new, more stable job.

[Anonymous]

Anonymous wrote:How long would it take you to find a new job if you were laid off? If that's a legitimate concern, I'd be inclined to go with the new, more stable job.

That's really what I'm weighing I think. Thanks for focusing me back to the essential issue. Basically I'm happy enough (on balance) to stay where I am...but the instability and poor management is the worry. I guess I worry that if I don't take this job I simply don't know how long it would take to find one if I were to be laid off. That's scary and I'd be looking from a position of real desperation. Feels desperate enough right now!

I think this is a bird-in-hand situation and it's really hard to judge what's right or wrong.

[Anonymous]

Anonymous wrote:I could really use some advice.

I have what is - on paper - a great job (good title, salary, etc.). In practice, it also like a lot about my job - colleagues, flexibility, etc. But, the company is not particularly stable and the management is in a certain amount of turmoil. So, needless to say, I'm not feeling completely secure where I am.

With that background, I've been offered a new job, but at a significantly lower salary (say, $27k less). This is at a larger, well known company (so, more stable I'd say).

I'm struggling with what to do. I know there are pros and cons each way, but does anyone have any advice about taking a pay cut? I'm worried about "re-setting" my salary and having to "dig out" of that new number as I progress at the new job…or later jobs. But I'm also worried about the stability of my current company (there will be lay offs, etc.).

Help and thank you!

I did this once when leaving a startup to go to large company, $140 to $110K, but leaving a risky startup to a stable well known company, and had better benefits that made the jump really only a 15K drop. But it was a huge mistake, mainly because a large stable company can be a career killer. Much better to stay engaged in a smaller dynamic company with new and interesting work, than to coast in a big stable company. Take a look around at the larger well known company, is it where you want to be 10 years from now? you will get pegged and the large firms can be a stain on your resume. Job market is not like it was 30 years ago when stability and loyalty were valued.

[Anonymous]

Have u tried to negotiate the offer with the new company? If not, you should and don't be afraid to be honest with them about how much you need. They aren't going to rescind the offer just because u asked to negotiate it

[Anonymous]

I have a young child, so to me stability is VERY important. It is also easier to find a new job when you have a job, so if you're worried about layoffs, that is something to consider.