If you are on the market for a new job, you may be of the view point that unless you move job for an increase in salary, that you are not progressing the way that you should be in your career. After all bills have to be paid, food needs to be put on the table and a roof over ones head is vital.
For this reason you may be inclined to think that the most important decision that should be made when considering a new job is how much money is being offered, and that you need to strive for as good an offer as possible, and that it HAS to be more than what you are currently earning.
Well yes, as a rule that is the way you would want your career to progress in the perfect world, and money is very important. However a perfect world sadly does not exist, and there are times when a pay cut may be something that you should consider.
The question is when should you consider a pay cut for a new job?
Been out of work for a while
If you have been out of work for a while, you may find it harder to get a higher paying salary than you were on before. The reason being is that companies don’t have to come up with an offer good enough to tempt you away from another company. In these situations you may need to be more flexible when negotiating salary, and may need to consider a pay cut.
If you have just been offered your dream job, and a role you have always wished you could have, or a job with your dream company, taking a slight pay cut may be worth your while in the long term. However in these situations it would be best to try to negotiate a salary review sooner rather than later.
If you have made the decision you are looking to make a career change, you need to take into consideration that your work experience is not going to be that relevant, nor will you have the exact skills the company would need. For this reason you may be forced to have to take a pay cut.
If you are currently living and working in one city and have been offered an exciting position in another city or country, that has a lower cost of living, then it is something you may want to consider.
The higher your salary the higher the taxes you pay. Before refusing a pay cut, work out what you are going to be taking home after taxes, you may find you are pleasantly surprised in terms of what taxes you would be paying.
Always remember to look at the bigger picture, and the opportunity the new job would offer long term before making decisions in terms of your salary expectations. Should you feel that long term the job will be worth taking a pay cut for, remember that with hard work, a great work ethic and commitment you should be able to make up what you have lost in salary in no time.