One of the things people are often led to believe during a job search – whether it’s a recruiter, hiring manager or a friend saying it – is the idea that you sometimes have to take less money in the short term to get ahead in the long term.
In other words, you might find yourself moving to a job that is being advertised as being a better long term opportunity for you but where you’re actually going to get paid less than your current or most recent job paid.
If you’re out of work and are thinking about taking a job that pays less than your last job did, that’s understandable especially in this economy. Plus if you’ve been out of work for awhile and really need to start getting paid again, sometimes it’s a necessity.
Honestly, I have a hard time with this concept if you’re currently working and are thinking about going to a new job on your own accord that would pay less. I find it hard even as a recruiter to get my head around the idea of going to a new job and getting paid less.
At the end of the day, it’s certainly up to you and if you see the benefit, then go for it and good luck to you. But personally, I think I’d have a hard time doing it. There are no guarantees in life and especially in the work world today where “long term” might be the next 6 months. I certainly wouldn’t accept a verbal promise from anyone suggesting that taking less money in a new job will be of benefit down the line because chances are the person making that promise won’t be in the job by the time you’re looking to get a raise and might not even be with the company anymore.
There are occasions I’ve seen where you might find yourself looking at a pay cut when switching jobs though and here are few that I’ve witnessed in my recruitment life:
1. You’re moving to a new career or new industry: Whether it’s because you have a lack of experience in the career or industry you’re moving to or it’s because the new career or industry simply pays less than the one you’re currently in (ie. you’re moving from the financial industry to non-profit for example), this is one reason you might find yourself looking at a pay cut with the new job you’re considering.
2. You’re moving to a small(er) company: Often the size of your company can have an impact on your pay. If you’re working for an established multinational and are thinking of moving to a start up or small company with a fraction of the staff your current employer does, this can often impact what your new employer can pay you if their resources are limited.
3. You’re moving to a new city/state/province/country: Often the location of the job can impact what you get paid. More expensive and larger cities often pay more than small rural cities because it’s the way they attract people while recognizing the higher cost of living involved.
You might take a pay cut when you’re not even switching jobs, too. If your company is struggling a mandated pay cut might be the difference between having a lower paying job and having no job.
When it comes to voluntarily taking a pay cut though, consider the effect it could have if you end up deciding again to change jobs again in the future and have to explain to a potential employer why you took a new job with less compensation.
