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Negotiating a Pay Cut?

Posted by Cliff on from the survival-tips-in-a-lagging-economy dept.

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?"

4 of 22 comments (clear)

  1. Let them lay you off...... by jsimon12 · · Score: 1, Interesting

    I would let them lay you off, assuming they will give you a nice servrance package or some sort of compensation. If you agree to a pay cut, then you may end up forfieting proper compensation. If they aren't giving a severance package, take a pay cut and find another job, cause odds are this place is going down HARD!!!!!!!!!!!!!!!!!! Oh and whatever you do, don't let them pay you in stock, unless you are out of toliet paper, cause it probably won't be good for much else.

    1. Re:Let them lay you off...... by jsimon12 · · Score: 2, Interesting

      No offense but I think you are in total denial. The odds of this company being a diamond in the rough are astronomical. But then again, a great many people play the lottery. Maybe schools should make statistics a basic requirement in highschool. Sure, if somehow the company is one the greats just having problems then sure take stock, but lets be honest here, it is unlikely if they are asking people to take pay cuts that they are headed for great things. I talked to a buddy that does corporate outplacement, and he says when they ask you stuff like this, you can pretty much be 99% sure the company is gonna tank. If you want your future riding on that 1%, by all means listen to this guy.

  2. Re:Reduced schedule? by thogard · · Score: 2, Interesting

    Most compaines have rules that say if you don't work 40 hrs/wk your not full time and you don't get the extra benifits. Will taking the 4 day workweek mean you don't get insurance or vacation time?

  3. Re:Reduced schedule? by Anonymous Coward · · Score: 1, Interesting

    This cowardly response comes from Canada...
    I would be very wary of this being a short term fix to financial trouble - it sounds all bad. Remember, "Nice guys finish last". Consider this though...
    I currently work in IT at a large law firm 4 days a week & have a full time employment status. Many firms up here have a 28 hour minimum for full time employment status. Where you get caught is now that you're working 80% of "full time" hours, you get 80% of holiday time (12 days rather than 15...). I haven't checked into long term disability benefits, but I would base that on 80% as well. Dental & other benefits are uneffected. One other problem that may arise is if you are in fact laid off, your unemployment claim may be based on what you earned in your last (xx) weeks of work not what you were earning before the reduction. There is probably a maximum amount that you can receive in benefits, but be wary of the potential for reduced unemployment $$'s if you reduce your work hours.
    I use my free day to relieve stress by working as a contractor at a smaller law firm - works great!
    I wish you courage & clear thinking.