Pay Cut Offer, YES or NO

Pay Cut Offer is a kind of dilemma, How to Respond it, accept it or not, hopefully this sharing can provide you some inspiration.

Possible Reasons for Pay Cut Offer:

Company Side:

• Internal Salary Structure

1. Especially for highly stable company with many employees who have worked there for over 5 years (even 10+/15+… years), considering for the Internal Balance, it’s almost impossible for company to have flexibility about Offer to new joiner. Under the circumstances, it’s also hard to get salary increase rapidly from internal salary review.
2. Some people will think this is unfair for their devotion and a certain partiality to the “older lazy people”.

We will have broader view and be more tolerant when we are older. 

The “older lazy people” were once young and devoted.

• Company or BU’s Financial Situation

1. Surely you will not get an ideal offer from a company or Business Unit keeps losing money.

They definitely need great talent like you to change the situation only they can’t afford to hire you with a decent pay.

This possibly can’t apply to Internet companies.

• External Economic Impact

1. The American Trade War and COVID-19 pandemic both damage the economy and business. Companyare having lower/ tighter budget for both new hiring and replacement. The Salary Increase Range from changing job has downgraded from 20-30% to 10-20%

• Definition for the Role

1. Whether this Roleis truly important as their description to you during interview?
2. Whether they havelong-term career path for this Role? Or it’s just a test for business which they can cancel randomly?

• Political Issue

1. Not a necessary Role but quite necessary for internal political issue.

Personal Issue:

• Purely New Industry or New Function

1. Enter into a purely new industry without effective resources and network.
2. Take a purely new role which has nothing to do with your past work experience.

Think it seriously before making this decision.

Whether it’s realistic for you to give up everything and start all over again?

Be Passionate, Resilient and Persistent after making the decision.

• Off-Job >8 months

1. If you are off-Job for over 8 months without a reasonable reason then it’s highly possible you will get a Pay Cut Offer or remain unemployed.

For this situation, it’s going to be very lucky if you can get an equal offer as before, so don’t be greedy.

YES OR NO?

WHY NO:

• Long-term stability

1. More or less, they will have less loyalty to the company and possibly treat this job as a transition.
2. More easily to quit whenever there's challenge or conflict in work. 

• Unconfident

1. It shows you are not confident for your capability, expertise and everything.

• Suspicious

1. You may leave an impression on people that you were overvalued and you only deserve this lower salary.

WHY YES:

• Industry Prospect and Long-term Career Path

1. It’s the most promising industry from long-term run, you lack of the industrial background & experience, and you will get much more benefit from this short-term compromise.

• Start-up

1. Great opportunity from a promising Start-up company with a reliable team.

• Sincerity

1. You can feel it from the whole process (How they TREAT YOU), they will try their best to explain everything /reason clearly to you and make it up to you from other aspects like allowances, overseas training, promotion scheme, welfare, etc.
2. They will Promise you the salary increase and promising promotion and they are willing to write all the promises into your Offer Letter and Labor Contract.

 There’s no absolute Right or Wrong, follow your heart to make the decision for nobody knows better about your desires, capability and potentiality. Be Passionate, Resilient and Persistent whatever happens after making every decision.