When deciding to take a new job, there are a lot of factors to consider such as the responsibilities of the job, potential for future growth, the job title, the benefits, and your salary. Ideally when you’re looking to change jobs, most of the time you’re hoping to make more money. However, there are times when it is better to take a pay cut for a new job. Check out 5 times you should consider taking a pay cut.
Making a career change
If you’re going into a new industry where you have less experience, you’ll need to consider taking a pay cut in order to get your foot in the door. As you gain more experience and learn new skills, your salary will start to rise again.
You want more of a Work-Life Balance/Flexible Hours
If having a better work-life balance is something you crave or you really want more flexible hours, it might be worth the pay cut. It all depends on your needs. Maybe it’s a sales role with little to no travel or truck driving position where you’ll be home every night. If it’s better for your family or having flexible hours keeps you from stressing, take the pay cut.
It’s Your Dream Job
Sometimes an opportunity comes along that meets all your needs and wants, except the salary. Maybe it’s the exact role you’ve always wanted, or it has the perfect amount flexibility with great benefits. Perhaps it has great growth potential, better than your current role. These are all great reasons to change jobs and take a pay cut.
Your salary is not the only compensation to consider when it comes to your job. Overtime pay, paid time off, paid sick time, insurance, retirement plans, holiday pay, tuition reimbursement, childcare reimbursement, health savings accounts, etc. are all great benefits to consider in addition to your salary. For example, if your current employer pays your $45,000/year but doesn’t offer health insurance and new job paying $40,000/year with health insurance with help you save on health costs giving you more in your pocket than your current employer.
Leaving a Bad Company Culture
As they say, “love what you do, and you’ll never work a day in your life.” If you dread going into work everyday because you hate the environment, finding a company with a better company culture would be a breath of fresh air and might be worth the pay cut.
Taking a pay cut is not a light decision you make. There are a lot of consideration to take into account. Make sure you can financially take a lower salary, otherwise you’ll just be transferring your stress to stressing about money. You may need to be willing to make some lifestyles changes for a lower paying job that will make you happier. Make sure to weigh all your options before make a big decision like a career change.