Taking a pay cut with a new job - anyone made it work?
Discussion
I took a 20% pay cut a few years ago, on the basis that I was enduring a 2-hour commute across London every day and I hated the work. Longer term plan was the new company had promotion prospects the original job didn't, so was planned as a short-term loss of earnings. That didn't work out but I enjoyed the job and it gave me a much richer CV that I the used to move on.
Long story short, I'm not in a job where the pay is twice the amount, in no small part due to taking on another job in the interim where I broadened my experience. Think of it as a long-term strategy and it makes more sense.
If the new job isn't adding anything to your CV, then the incentive is less.
Long story short, I'm not in a job where the pay is twice the amount, in no small part due to taking on another job in the interim where I broadened my experience. Think of it as a long-term strategy and it makes more sense.
If the new job isn't adding anything to your CV, then the incentive is less.
I went from a total package value of over £18k a month living in Dubai to just over £40k a year in Bristol.
Whilst it's possible to live, and indeed the wolf is not even close to the door (probably because I'm single with no kids and had decent savings) I certainly didn't take this cut voluntarily and indeed have spent the 2 years since having to leave Dubai trying to secure another ex-pat position
The poster above who talks about resenting it is spot on IMHO
Whilst it's possible to live, and indeed the wolf is not even close to the door (probably because I'm single with no kids and had decent savings) I certainly didn't take this cut voluntarily and indeed have spent the 2 years since having to leave Dubai trying to secure another ex-pat position
The poster above who talks about resenting it is spot on IMHO
Well, I've had the second interview. Everything I have been told is promising. Proper support, lots of opportunity to grow with the business (as they are growing a lot too), nice and friendly team, proper training plan etc. It also has the added bonus of being 9 to 5 Mon to Fri (with more work when required), and no on call at all. That, for me, is a brilliant thing as it means when I go home I can properly relax with my young family.
I finished the second interview and they called me ten minutes later to offer me the job. Just got to get it in writing now before I get carried away and hand my notice in.
Yes, there is a pay cut. However, I've discussed it with my fiancée and she is happy for it to happen. I have been told that the company does reward hard workers though.
Edit to add - even with the pay cut, I'm still earning just shy of twice the cost of running our house a month (mortgage, electric and gas, council tax, etc.). If we are careful, we can make it work.
I finished the second interview and they called me ten minutes later to offer me the job. Just got to get it in writing now before I get carried away and hand my notice in.
Yes, there is a pay cut. However, I've discussed it with my fiancée and she is happy for it to happen. I have been told that the company does reward hard workers though.
Edit to add - even with the pay cut, I'm still earning just shy of twice the cost of running our house a month (mortgage, electric and gas, council tax, etc.). If we are careful, we can make it work.
Edited by funkyrobot on Wednesday 10th May 16:05
xjay1337 said:
Twice the cost of your house should be easy life 
Glad you have a positive outcome. Money isn't everything.
It's one of the positives of being a boring person. Glad you have a positive outcome. Money isn't everything.
You are correct, money is not everything.
Saying that, I may need a car for work now as I may have to do client visits from time to time. Gives me more justification for chasing down a nice BMW e39.
CAPP0 said:
Nice one, well done. And you've given it plenty of thought, and you're moving for all the right reasons. If you're happy you can cover the financial side, all good!
Thanks. Let's see how this one works out. The current job has proven to be nothing like it was advertised as. However, the new one should be as it's a small team and people like my current manager couldn't work somewhere like that.Congratulations on the new job!
I have taken pay cuts before and they have always worked out. Most recently I took an overall pay cut, but a basic pay increase. I lost around 10% which isnt much, but it has made a little difference, but the difference is skewed by the fact I have just bought a house and I am spending more on things for that. Overall though I am better off, I walk to work, work less hours, get a longer lunch break, do not work in an insane asylum, much less stress, less stuffy environment etc etc. It is nice having ones life back.
All the best in the new role.
I have taken pay cuts before and they have always worked out. Most recently I took an overall pay cut, but a basic pay increase. I lost around 10% which isnt much, but it has made a little difference, but the difference is skewed by the fact I have just bought a house and I am spending more on things for that. Overall though I am better off, I walk to work, work less hours, get a longer lunch break, do not work in an insane asylum, much less stress, less stuffy environment etc etc. It is nice having ones life back.
All the best in the new role.
Thanks.
I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
I handed my notice in yesterday afternoon. My manager looked a bit taken aback, simply asked where I'm going, responded with 'never heard of them' and that was that. I asked him today about negotiating my month's notice (as the new company want me there asap) and he said it will have to wait until tomorrow when he talks to his manager. They had a chat yesterday afternoon about it. I don't know why I have to wait until tomorrow to find out. Anyhow, my contract states four weeks notice, so I will be leaving here four weeks from yesterday at the latest.
He is so dillusional he has asked me if I have any site familiarisation tours booked yet. This is the stuff that was supposed to happen in the first few weeks, not when I'm blooming leaving.
He really cannot think about anyone other than himself.
I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
I handed my notice in yesterday afternoon. My manager looked a bit taken aback, simply asked where I'm going, responded with 'never heard of them' and that was that. I asked him today about negotiating my month's notice (as the new company want me there asap) and he said it will have to wait until tomorrow when he talks to his manager. They had a chat yesterday afternoon about it. I don't know why I have to wait until tomorrow to find out. Anyhow, my contract states four weeks notice, so I will be leaving here four weeks from yesterday at the latest.
He is so dillusional he has asked me if I have any site familiarisation tours booked yet. This is the stuff that was supposed to happen in the first few weeks, not when I'm blooming leaving.
He really cannot think about anyone other than himself.funkyrobot said:
Thanks.
I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
[snip]
There's your answer.I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
[snip]
We all (well, those of us that aren't extremely lucky) spend a significant portion of our lives at work. if you don't enjoy that time, the money is of little comfort. If you can make the numbers work on less money, and enjoy it far more, then it's a no-brainer.
funkyrobot said:
Thanks.
I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
I handed my notice in yesterday afternoon. My manager looked a bit taken aback, simply asked where I'm going, responded with 'never heard of them' and that was that. I asked him today about negotiating my month's notice (as the new company want me there asap) and he said it will have to wait until tomorrow when he talks to his manager. They had a chat yesterday afternoon about it. I don't know why I have to wait until tomorrow to find out. Anyhow, my contract states four weeks notice, so I will be leaving here four weeks from yesterday at the latest.
He is so dillusional he has asked me if I have any site familiarisation tours booked yet. This is the stuff that was supposed to happen in the first few weeks, not when I'm blooming leaving. He really cannot think about anyone other than himself.
People don't often leave companies, they leave managers. You've proved that clearly here it seems.I woke up at 4:30 this morning wondering whether or not I had done the right thing. On reflection though, I have.
Yes, it's going to be less money and we will need to be careful. However, I simply cannot stand another day in the job I'm currently doing. Some people think I'm mad. They don't understand the mental anguish this role has put me under since week 1 though. I have never got up to speed in the role, I've been constantly hampered by a really bad manager, and it's been making me feel down and depressed for a while now.
I handed my notice in yesterday afternoon. My manager looked a bit taken aback, simply asked where I'm going, responded with 'never heard of them' and that was that. I asked him today about negotiating my month's notice (as the new company want me there asap) and he said it will have to wait until tomorrow when he talks to his manager. They had a chat yesterday afternoon about it. I don't know why I have to wait until tomorrow to find out. Anyhow, my contract states four weeks notice, so I will be leaving here four weeks from yesterday at the latest.
He is so dillusional he has asked me if I have any site familiarisation tours booked yet. This is the stuff that was supposed to happen in the first few weeks, not when I'm blooming leaving.
He really cannot think about anyone other than himself.Sometimes you have to move backwards to move forwards.
I took around a 8 grand pay cut when we relocated back to the north west from Hertfordshire.
More recently I ended a contract working abroad to take up a permanent position which was closer to home and gave me management experience - but which was paying the equivalent of less than half my contract rate.
I took around a 8 grand pay cut when we relocated back to the north west from Hertfordshire.
More recently I ended a contract working abroad to take up a permanent position which was closer to home and gave me management experience - but which was paying the equivalent of less than half my contract rate.
Well, that's annoying. Was pointed out to me earlier that my notice period is 3 months, not 1 month. There is a clause in my contract that overrides the standard notice term and takes it to the longer time.
I have to wait until tomorrow to have a meeting with the department head to sort it now. The MD of my new company said just walk if they get difficult at the current company.
Trouble is, if I just walk I'll be in breach of contract. Not good really.
What an absolute pain!
I have to wait until tomorrow to have a meeting with the department head to sort it now. The MD of my new company said just walk if they get difficult at the current company.
Trouble is, if I just walk I'll be in breach of contract. Not good really.
What an absolute pain!
funkyrobot said:
I'm currently very unhappy at work and have been searching for something else. I managed to find another local job and have a second interview on Wednesday?. Taking the job (if I'm successful with the interview) will mean a 20% pay cut though.
I've done the numbers and we can still live on the reduced rate. Things will also be easier when my fiancee returns to work soon (daughter 3 in August so we'll get some childcare paid for).
Has anyone taken a pay cut like this and made it work?
.
I've taken a pay cut out of necessity. Don't do it, you will regret it. If you don't like your current job then take a different one that pays more. I've done the numbers and we can still live on the reduced rate. Things will also be easier when my fiancee returns to work soon (daughter 3 in August so we'll get some childcare paid for).
Has anyone taken a pay cut like this and made it work?
.
Remember people usually get a pay rise when changing jobs. So it is really 40%, not 20%, less than you should be getting with a job change.
Edited by creampuff on Friday 12th May 09:53
funkyrobot said:
I have to wait until tomorrow to have a meeting with the department head to sort it now. The MD of my new company said just walk if they get difficult at the current company.
Trouble is, if I just walk I'll be in breach of contract. Not good really.
When you go for another job in the future, they may want references from your previous 2. So walking from this job may be fine now, but may bite you later down the line if 1st company refuses to give a reference later.Trouble is, if I just walk I'll be in breach of contract. Not good really.
And good on your for making life changes, hope this is the start of a much better period for you.
Thanks all.
Just waiting for my meeting with the head of the department. I thought something would have materialised by now, but I guess I need to chase.
In terms of references, yes it could bite me later, but the new job is too good an opportunity to miss. Also, I've never had to provide the two previous employers as references anyway. For the job I had now and the job I want to go to, they have only really asked for previous employer and someone else (the new job company told me yesterday that they won't even bother with the current company if they get funny).
I feel I can justify an early exit based on the fact that I am not doing anything at the moment. If the current company need to recruit, the new person will be coming in at pretty much the same level as me. I had my first day of training on the new system last week. Apart from that, I load the odd PO and then spend the rest of the day twiddling my thumbs. It's probably the main reason I want to leave, absolute boredom.
The company I am at now has just had a big raft of redundancies too. If anything, me leaving would help them as I contribute nothing and I'm costing them 'x' amount a month.
Will see how the meeting goes.
Thanks again all.
Just waiting for my meeting with the head of the department. I thought something would have materialised by now, but I guess I need to chase.
In terms of references, yes it could bite me later, but the new job is too good an opportunity to miss. Also, I've never had to provide the two previous employers as references anyway. For the job I had now and the job I want to go to, they have only really asked for previous employer and someone else (the new job company told me yesterday that they won't even bother with the current company if they get funny).
I feel I can justify an early exit based on the fact that I am not doing anything at the moment. If the current company need to recruit, the new person will be coming in at pretty much the same level as me. I had my first day of training on the new system last week. Apart from that, I load the odd PO and then spend the rest of the day twiddling my thumbs. It's probably the main reason I want to leave, absolute boredom.
The company I am at now has just had a big raft of redundancies too. If anything, me leaving would help them as I contribute nothing and I'm costing them 'x' amount a month.
Will see how the meeting goes.
Thanks again all.
I went from travelling to meetings the world and not really knowing what day it was and what timezone I was on, to being home based, spending more time with my family and friends. The pay difference was enough to hurt a bit and cut back on a few things but it was a fair trade off for actually enjoying the time I had outside of work.
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