Headhunter Hints: Should candidates ever consider taking a pay cut?

 

Headhunter Hints: Should candidates ever consider taking a pay cut?

No one wants to take a cut in salary, but at times, it can lead to a better financial trajectory in your career. How do you know when, or if, it’s appropriate to take a pay cut?

Here are some examples of when it might make sense:

– When you are unemployed (after all, it’s not a pay cut at this point)

– When there is a vast amount of learning opportunity and/or mentorship

– When you get to do work you are passionate about with people you genuinely enjoy

– When you are entering a new industry

– When the total compensation package is more attractive than your current base salary (equity, stock options, lucrative bonus, etc.)

– When the cost of commuting to and from work is taxing and affecting you financially and/or mentally

– When you know you’ll have a greater chance of success

– When you’re looking to not have as much responsibility as in previous roles (no longer managing others, traveling less, etc.)

Career paths aren’t always linear. Sometimes you need to side step to get ahead, or to get where you want to be personally.

With that said, employers also take on some risk when the candidate willingly takes a pay cut. There is always the potential of that employee determining that it was more of a hair cut than they imagined and creates a scenario where they can easily be recruited out if offered higher pay. If you do decide to take a pay cut, make sure it’s for good reason.

 

Connect with Liz Gehl on LinkedIn

Get More Tips on the Blog:

Are your resume submissions going unanswered? Check out our recent article Working with Executive Recruiters: Build Relationships Early.