Why Taking a Pay Cut is a Great Idea

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Robert Owens
Why Taking a Pay Cut is a Great Idea
  1. Is it a bad idea to take a pay cut?
  2. Why are you willing to take a pay cut?
  3. Is it worth it to take a pay cut for better work life balance?
  4. What happens if I refuse a pay cut?
  5. How do you survive a huge pay cut?
  6. Is lowering pay illegal?
  7. Is a pay cut worth it?
  8. How is pay cut calculated?
  9. How do you say you are willing to take a pay cut?
  10. Is it OK to take a lower paying job?
  11. How do you ask for a higher salary?
  12. Is money more important than work/life balance?

Is it a bad idea to take a pay cut?

One of the big reasons to take a pay cut is if you're switching industries. It may be worth a cut in pay “to gain a new set of skills and experiences that will broaden your skill set,” says Trellis Usher, founder of HR company T.R.

Why are you willing to take a pay cut?

Sometimes, job seekers may be willing to take a pay cut because they can't find a job that pays what they used to earn. If savings are running out, and unemployment benefits are near an end as well, working for less money may be necessary and preferable to the alternatives.

Is it worth it to take a pay cut for better work life balance?

Conclusion. Is it worth it to take a pay cut for better work-life balance? Yes and no. It totally depends on what you value most in your career, what's up ahead for you on your trajectory and if it makes financial sense for you.

What happens if I refuse a pay cut?

This means if your employer wants to cut your pay, they have to ask for your permission first. You can refuse a drop in wages, but you would be risking termination of your contract completely.

How do you survive a huge pay cut?

These tips are also valuable if you go through a temporary or permanent layoff in the future.

  1. Apply for Partial Unemployment Benefits. ...
  2. Create a New Budget. ...
  3. Cut Back on Discretionary Spending. ...
  4. Save on Necessities. ...
  5. Apply for Assistance. ...
  6. Try Not to Shortchange Retirement or Savings. ...
  7. Think About Long-Term Goals.

Is lowering pay illegal?

If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.

Is a pay cut worth it?

Your Personal Life Is Taking a Hit

Let's say that pay cut means shorter or flexible workdays, additional vacation time, or the chance to work from home. Truth: benefits count as much as dollars. It's definitely worth considering.

How is pay cut calculated?

Calculating a Pay Decrease by Percentage

  1. First find the decimal value of the percentage decrease. ...
  2. Next, multiply your original hourly wage by the decimal value of the percentage decrease. ...
  3. Subtract the previous value from your original hourly wage and you'll get your new hourly wage amount.

How do you say you are willing to take a pay cut?

"I would be willing to take a cut in salary if needed, as this position will allow for a better home and work balance. I would love to know what solutions you have to get me as close to my current salary through signing or performance bonuses, as I know I will be able to meet and exceed your expectations."

Is it OK to take a lower paying job?

If you're out of work and you need money to pay the bills, it's better to take a lower-paying job than to have no job at all. “There are fewer jobs out there and you may not only have to take less money, you may end up having to take less job,” Courtney says.

How do you ask for a higher salary?

"I'm very excited about the position and know that I'd be the right fit for the team. I'm also excited about your offer, and knowing that I'll bring a lot of value to the table based on my experience that we discussed during the interviews, I'm wondering if we can explore a slightly higher starting salary of $60,000.

Is money more important than work/life balance?

Work-life balance means different things to different people. Work-life balance means different things to different people. ... According to a study by Fidelity Investments, when evaluating a job offer, 58% of Millennials and 53% of Gen-Xers cite improved quality of work life as more important than financial benefits.


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