Is a Pay Cut Worth it for Your Career?
Posted March 3, 2014 & filed under Job Search
Imagine you’ve lost mobility in your career and your job search has been turning up empty.
Every position at your salary level is either uninspiring or doesn’t synch with the work culture you need. Then out of the blue, a position that excites you and provides the work/life balance you crave appears on your radar. The only downside is that a small pay cut may be required.
Should you ignore the position and explore other waters or take a chance and find the career of your dreams? Always consider these questions before you pursue a position with a pay cut.
1.) Does the company promote from within?
A defined promotion track in a company can mitigate any initial pay cut. LinkedIn and Glassdoor are great tools to help you deduce whether or not promotions are commonplace.
Review the LinkedIn profiles of the company’s current employees and you can see how often their positions have changed in the last few years. The higher the frequency, the better your chances for getting your own promotion (and spike in pay) early on.
Glassdoor comments directly reflect employee opinions and often focus on whether or not promotion was an option. It’s a clear cut way to get the skinny on promotions right from the source. One caveat is that you take some comments with a grain of salt since some employees just post on Glassdoor to vent.
2.) Is the company growing?
Growing companies are far more likely to give you a raise in the near future. With extensive revenue streaming in and a strong desire to keep competitive, they are far more inclined to increase the salaries of top talent. So how do you find out if a company where you would take a pay cut is growing?
A company’s website can provide you with tidbits that can help you piece together growth opportunities. Look at revenue earnings (for publicly traded companies), press releases about physical expansion, or job boards for an influx of new job postings. Companies with kinetic growth tend to have all of these green flags.
3.) Do the benefits make up for the decrease in pay?
Sometimes a comprehensive benefits package can surpass the loss taken with a pay cut. Healthcare coverage, 401k contributions, tuition reimbursement, and a myriad of other perks all have a hidden dollar amount that you need to calculate. To find out what recompense will be coming your way, explore the company’s website and any Glassdoor reviews.
Also, if you can make a contact with one of the company’s employee, don’t be afraid to ask about benefits. It shouldn’t be your only question, there is plenty of insider information to obtain, but it can provide you with details that are otherwise hard to find.
4.) Does the company offer a better work life balance?
A pay cut can be vindicated if it affords you more balance in your life. If your current job is treating you like a pack mule for every project, it can be worth it to apply with a company that respects your personal life. Company value statements and employee reviews are the best resources for determining if the company’s work/life balance is right for you.
And if you’re having a hard time answering any of these questions, a recruiter might be able to answer them for you. Recruiters strive to get as much information as they can on a given company and often already have all the answers you need out of the box. So, give one of our recruiters today, and they can help you determine whether or not a pay cut is worth it for you.
by James Walsh
