Dear Bossy,
I am ready for a new job. My company has re-orged a few times and I have a new boss and I think I’m ready to move on. I have been there for more than 5 years, so I do feel like a new challenge is in order. I’ve been interviewing at a few places and one job I really like is lower pay than what I am making now. Is there ever a good reason to take a pay cut? Do I have any options?
Thanks
Pay Cut Pam
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Dear Pay Cut Pam,
Money isn’t everything. But, it is a lot of how we survive in the world and it can be hard on your family or your psyche to take a pay cut. You didn’t say how big the pay cut is, so I don’t know if it is big or little, but I would come at this from a few angles.
Look at the entire package as a whole. What are the benefits, are there stock options, do they match 401k, what is the PTO, how much is health insurance out of pocket for you. Do some math on this job compared to your current job. You may realize it is not as big of a difference (or you may realize it is even more dire than you thought).
Do some research. You are making a certain amount in the market, do some research about this job in this market and see whether you are looking for something that is reasonable or if you are actually currently over market. Golden handcuffs are when you make too much money at a certain job so it makes it hard to leave. If what you are looking for is in the range, then you have some good information to go back to the hiring manager and negotiate.
Figure out what you are willing to take and what your dream number is. And evaluate this (and all jobs) against that range. Is the salary below your floor? If yes, then you need to figure out what that means financially and whether there are trade offs that make it worthwhile (growth company, great boss, better commute…)
Negotiate. Once you have figured out all of the above, I would negotiate the heck out of this job. Sell your value, help them understand the impact you will have on the company, share a 30/60/90 day plan that wows them, share some references that knock their socks off. You need to sell the value. Many many people will pay more if they understand why you are more expensive. If you have another offer, use that as a negotiation pressure point, especially if it is for more. Don’t burn bridges, be upbeat and nice and data driven and see if you can move them closer to your ideal number.
Be ready to walk away - there are other jobs. If they can’t make it work, that may mean they weren’t going to value your work. You may be dodging a bullet.
Money isn’t everything, so think big picture, but also realize if you take a big pay cut that has consequences for your future earning power, so be thoughtful.
Good luck!