Taking a Pay Cut – Why It’s Sometimes Worth It
By: Marissa Katsounakis, Senior Healthcare Recruiter & Client Relationship Manager at K.A. Recruiting
Searching for a new job opportunity can be a daunting task, with lots of factors to consider. Going through the interview process and getting to an offer stage, only to be presented with a job offer that is less than what you currently are making, can certainly be disappointing. Although a pay cut is never something an individual is actively seeking, there are many times where it can be worth it. Wondering when you should consider a pay cut? Here are some circumstances where it may actually be beneficial.
Are you relocating? Oftentimes, relocating for a position means a change in the cost of living of the area. Are you moving from an expensive city to a quieter, more rural area? In that case, it is more than likely that the cost of living will be much cheaper. Taking a look at housing costs, state income taxes, and the general cost of living in the new location is crucial. If you’re moving from somewhere like Los Angeles, California to a place in the Midwest that is much more affordable, you may be able to maintain the same lifestyle on half the salary!
The Big Picture Compensation Package. Compensation is more than just your salary or hourly rate. When being offered a new job, you need to look beyond just the number you are paid per hour, and consider what else is offered. A benefits package is one of the most important parts of a job offer- according to the Bureau of Labor Statistics, benefits accounted for about 32% of employer cost of compensation. Additionally, sign on/retention bonuses and relocation packages are also something to consider in addition to salary when presented with a new offer.
A Better Working Environment. If you hate the conditions you are working in or are having trouble with coworkers or management, taking a pay cut to be in a situation where you are happier with positive people can be well worth it. Taking a pay cut for a better, healthier working environment will improve quality of life more than salary will.
The New Job Offers Unique, Valuable Experience. Building your skills and expanding your experience and knowledge can further your career more than you think. Taking an opportunity with a top institution or with one that offers more room for growth and opportunity than your current job can be more beneficial to your long-term career goals than simply choosing a job that pays more.
Overall, it is important to look at more than just pay when searching for a new job. Considering other factors such as the ones listed above can help you make a more thorough decision to further your career.