Negotiating a Pay Cut?

csb asks: "My employer will probably ask me to take a pay cut in order to prevent (or at least minimize) layoffs. I want to keep this job; but, I don't know what to request in return for accepting a temporary reduction in salary. Is this a negotiation? What questions should I bring to the table? Which issues should I stand firm on, and what should I let slide? Are there some resources out there about this sort of thing?"

Comments

Few tips

[SuiteSisterMary]

Find out if it's a pay cut, or a temporary reduction. Get, if you can, in writing, an agreement that when financial condition X is met by the company, salary will go back to normal, back-pay will be coughed up, etc. Try to get time off/vacation in leiu of. Start looking for another job; everybody else will be. And some of them will leave. Those that are left will be asked to do more. They'll get pissed, look for a new job. Vicious cycle.

other possiblilities

[wmulvihillDxR]

You say that you want to keep this job, so I'm going to assume that you are truly interested in this job, having fun, and think this company is going somewhere. Here are a couple of options to think about:

1. If you really think that this company is going somewhere and that these layoffs are a temporary measurement, you could negotiate for some stock in the company. Pros: If the company really does get through this and becomes wildly successful, you've just taken care of everything. Also, it gives the managers a warm fuzzy to know that you really do think the company will be successful. If the company is large enough, then giving up a little bit of stock (like 1% or something low) is no skin off of their nose and, more importantly, its no cash out of their pocket. Finally, if the company really does tank, its not like you actually "bought" the stock and had it die. Cons: Some companies will not even "go there."

2. Negotiate "minor" perks. You probably know what I mean, longer lunch, telecommute one day a week, faster computer (before you refute me on this one, remember, they can spend up to $500, tax-deductible, on equipment), etc.

Anyways, those are my suggestions. Good luck!

I am fortunate

[Red Aardvark House]

My current job had a much higher rate of pay than my previous so I accepted it as a part-time position, which later grew to full time. If my pay is cut, then my hours will be scaled back as well. Hopefully things won't be too tight so that I couldn't enjoy a little "working vacation" here in Florida.

Re:Pay cut

[csb]

More info: I work in a small local office with a tightly knit team of people whom I have worked with before. I genuinely enjoy being with my team, this is what makes me get up in the morning.

In addition, my employer has generous benefits, including an emphasis on training and education. There's a lot of room for growth here, if we can make it through the current tribulations.

The company is IT professional services, so when we're billable, we can do little wrong; but, when we're not billable, we can do little right. Part of the problem is a legacy of poor salespeople.

This month, we found a new salesperson who shows great promise. I think that he'll have our office showing signs of life by year's end. In summary, it just isn't time to give up yet.

Of course, I'm keeping an eye on the job market; but, things are quite slow in my city. I would much rather tough it out with my crew than to hit the streets and fight the crowds.

We have savings, so if I have to take the pay cut, it wouldn't hurt too badly, I suppose. I would ask to get the difference back after business improves -- there ought to be a reward.

In sum, I don't think that my company is going down. They're just finishing a large reorganization, so I think that some of the chaos is coming from that, not just the recession.

I may be sentimental; but, I also think we can survive. I don't like changing jobs any more than I have to, and I definitely want to stay with what I think is a fun and very talented team.