7 times it’s okay to take a pay cutMunira Rangwala
There were times when accepting a pay cut was considered preposterous. However, times are changing and our work attitudes are evolving. While everyone wants to move higher in their career and get a heftier package with each passing year, sometimes taking a pay cut makes sense. There are times when you should hold out for a raise, and then there are times when losing an opportunity for more money is not a prudent career move. Here are seven situations in which it is alright to take a pay cut. Although, if you are offered more money, don’t say no.
When you need work
With so much competition out there, there are lesser jobs and more individuals vying for the same position. When you need money to pay the bills, it is alright to take a pay cut than not have any money at all.
Change of industries
If you're completely switching career tracks, the experience you've gathered over the years will go down the drain and you'll have to begin from scratch again. The expertise you've acquired over your previous job may not come in handy in your new job and therefore it is alright to start afresh at a lower salary.
The new job brings happiness
Speaking to Monster.com, Maggie Romance, Director of Organizational Development for Pima Community College in Tucson, says, “Having a job that satisfies you is far more important than how much you earn.” If you find a job that brings you peace, the salary you're offered should come secondary.
Retain your current job
Do you love what you do? If yes, it is okay to take a pay cut to continue doing what brings you joy. In today's world, it is very difficult to find a job that you look forward to going to everyday. If you've already found one, it's alright to compromise on the salary bit to retain it.
To strike a work-life balance
For millennials, a work-life balance is extremely important and this generation wouldn't mind accepting a pay cut if it means working lesser hours and having the flexibility to work remotely. If you make a conscious decision to see more of your friends and less of your co-workers, be prepared to take a job that comes with a pay cut.
When you're ready to be your own boss
Whether it is establishing your own company or starting out as a freelancer, the first few months will be tough on your pocket as you're venturing into a whole new zone. However, if you're determined to make it work, a pay cut should be the least of your worries.
You want to stop managing and be on-field
Were you promoted to a managerial position after years of working on-field? If you hate your new position because you love moving around or you're just not cut out to be a manager, it is alright to go back to doing what you love. However, this usually comes with a pay cut.
There will always be someone who will mock you for accepting a pay cut. But if you're happy with your decision, nothing else will matter in the long run.