Should I take a paycut?? Read on for details

powerfool

erpadmin wrote: »

I just had some recruiter from linkedin trying to lure me to the heartland. His pay range was sick (and not in that good way) and he's telling me that the cost of living is different over there. That's true, but I'm not going to take a paycut for a lateral move just so this guy can get his little $2k-5k.

See that is just ridiculous on their part. If I were to move to a lower cost of living area I would do so expecting to retain my current salary, or increase, in the hopes that I would have MORE disposable income... not the same.

I turned down a job this year where the offer was actually $15k more, but total compensation only equated to a 2% increase. This is no market to be taking a pay cut in, voluntarily. If the opportunity is good enough that you would move for the same money, figure out how to get yourself to that level. Will they reimburse you for things that you currently don't get (like mobile phone/data)? And yes, get it in writing... if they aren't willing to put it in writing then they aren't willing to commit to it later.

Lastly, one reason to never move with a pay cut, your raises will be based off of that lower level and so will your future job moves. I really dislike the practice of employers requesting salary history as they will not disclose what they pay/have paid others in the same or similar positions... In any event, they will ask, and even if they don't verify, your psychological outlook won't likely let you fudge it that much. Taking a $10k cut will put you in a position to try and get back to the higher pay... not in a position to make $10k more that you do now...

Everything gets tied to your salary... future raises, bonuses, 401k contribution matches, company sponsored life insurance, etc.... Be extremely careful of taking a cut.

powerfool

Forsaken_GA wrote: »

I agree with you to a degree. I personally think that if you hate your job, you owe it to yourself and to your employer to quit, regardless of whether or not you've got another job lined up. If you let that kind of situation play out to it's inevitable conclusion, it'll be worse for everyone.

If you allow yourself to be put in a position where you have to keep a job you hate in order to make ends meet, you've screwed up. I've planned for the eventuality of losing my job. I could quit today and pay all my bills and still live comfortably for six months. I could tap some long term investment accounts and turn that into 3 years if I had to. I wouldn't of course, I'd be looking for employment the second I was out the door, but I've got enough of a cushion that if my employer ever decided to try and hold my job over my head as a method to try and exploit me, they'd be in for a bit of a surprise.

This also gives me the confidence to speak up about any issues I have. Since I know I'm still going to be able to eat next month, and still be able to pay the rent, I'm not afraid to stick my neck out.

So yes, you plan, you prepare, you look for contingencies. Don't be the mouse in the cubicle who eventually resorts to burning down the company in a fit of vengeance. Do not stay in a bad situation any longer than is absolutely necessary, and do you damnedest to make sure you don't *ever* have to put up with that crap.

I call it having a supply of "eff you" money. It is always great to have that. Another tactic that I use is to build up my vacation time close to the maximum before I start using it. It is standard practice that if you quit or are let go that it will be paid out...

Right now, I have slightly over one month built up. I am allowed to accrue 200 hours before I will start losing it. I have already planned to use about 3-4 days in a couple of months, which will only take me down by two days given that I will accrue more between now and then.

Since my employer tries to put the carrot out there pretty far with the tuition reimbursement, the vacation time will more than make up for what I would owe them.... "eff you" money... if ever necessary.

Forsaken_GA

powerfool wrote: »

I call it having a supply of "eff you" money. It is always great to have that. Another tactic that I use is to build up my vacation time close to the maximum before I start using it. It is standard practice that if you quit or are let go that it will be paid out...

Right now, I have slightly over one month built up. I am allowed to accrue 200 hours before I will start losing it. I have already planned to use about 3-4 days in a couple of months, which will only take me down by two days given that I will accrue more between now and then.

Since my employer tries to put the carrot out there pretty far with the tuition reimbursement, the vacation time will more than make up for what I would owe them.... "eff you" money... if ever necessary.

Do not count on your built up vacation time. There's no state that I'm aware of that requires a company to pay out accrued vacation, it's all based on that companies policies. My current employer, before we got bought by the big evil Fortune 50 company, paid out unused vacation upon leaving. Our new Corporate Overlords informed us that once the sale was official, that would no longer be the new case, that they had never paid out unused vacation, use it or lose it.

Or your company could go bankrupt. Kind of hard to get pay out of them if that's the case.

Either way, don't rely on things like that for your emergency money. Nothing beats the comfort of cash in the bank, independent of what anyone else can do to you.

kingslayer

RomBUS wrote: »

he said he would pay me a lower salary than my last position ($10k less) but promised for raises the more trained I get to their technology ($5k more each time) but I thought to myself that could just be to get me reeled in.

This just sounds like such a bad deal.

You are taking a pay cut to learn technology which is exclusive to this business (knowledge of which becomes useless if/once you leave).

Sounds like a step backwards any way you look at it in my opinion.

RomBUS

Hmm well I emailed the guy about the concerns I have with the pay and the incentives that tie in with it. Hopefully he gets back to me over the weekend via email or phone.