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Asked to take lower pay

knucklehead G

knucklehead G

Mar 18, 2010
1,072
18
Phoenix / Kansas City
#1
Thus far this whole unemployment and depression thing has largely skipped over my head. I'm not a rocket scientist and I'm not rich, but I've had steady work for the last five years or so.

Recently the large corporation I work for announced the first round of layoffs. They haven't pointed any fingers yet, just a number of jobs. My department was still hiring until a month or so ago so I hadn't thought it would be an issue, until today.

I just received an email from a manager asking if I'd move to a different shift and a different department, for 10% less pay. They didn't imply anything related to the layoffs, directly, and of course management just squirms and says no comment if you ask.

I'd be going from night shift, which I prefer, to day shift. I'd no longer get Fridays and Saturdays as my weekend, and instead my days off would be something like Sunday and Thursday, completely random apparently. There's more work for less money in a smaller department that has to keep up with the bigger ones.


I've got until Friday to decide, but they offered the spot to some other people too and I noticed more offers than positions. What do you guys think?

Take lower pay to avoid the chance of a layoff?

Take the fact that my department just hired some new people as a good omen that they aren't touching this part of the company and keep the better shift and higher pay?


I'm the sole earner in my family right now as my wife is a full time student, and while I've kept a job we've been hit on a few things so unemployment would not be a good thing for me right now. Neither would losing 10% of my salary.
 
#5
Sounds serious. Sounds like someone likes you and is giving you a way out of an uncomfortable "soon-to-happen" event.

And the fact that nobody knows whats going on (yeah, right!) tells me : Uh-oh--I better take this offer.

If things get better, you'd probably get back your position---AS LONG AS YOU SHOW AS MUCH GOOD WORK AND ENTHUSIASM AS IN YOUR CURRENT POSITION. IN other words---keep'em happy as a good team member, cuz it sounds like they think you are---that's the reason for the heads-up you were LUCKY to get.

Take the change. You might be damn glad you did.
 
#6
Wow that is tough.

Where are you are pay scale in relative terms? Could the new hires be making less money?

I work in high tech and, unfortunately, layoffs are a fact of life. Generally there are three ways they go:

1) All the juniors and intermediates are laid off. The idea here is to keep the senior people for when things pick up.

2) Lay off the senior people. The idea here is to get the most bang for each layoff.

3) Lay off entire departments. This tends to happen in companies that have cut all the dead wood they can and have to start cutting the core.

Of course, this assumes all the dead wood and under achievers are cut first. But I find number 2, while the most short sighted, tends to be the most common.

So I don't know what to say. Have you gone through layoffs before? Has there been a pattern? Although new managers can change the patterns.
 
#7
When the economy turned down, I and my Board gave across-the-board 10 percent pay cuts to all employees in all companies of the group. Some people were laid off, but they were ones who were not performing well to start with. I think one or two people quit over the cut. This enabled us to keep our excellent employees while other companies of our type were going under.

Full pay has since been restored, and the companies are all running in the black.

If I'm reading the handwriting on the wall correctly, your company sees you as a valuable asset and is offering you an alternative to the fate of those who have already been laid off. If you don't have any irons in the fire, I'd take the deal, at least until something else pops up.
 
#8
Take the cut. Something is better than nothing, and if things turn around for your company its much easier to take on a different (better) shift than to re-apply for your job. Losing 10% of your pay is better then losing 100%.

Does your company value loyaty? Taking a hit for the good of the company might impress the right people.

It does seem odd that they would hire new staff and then lay-off the old staff unless the new staff have been hired on a lower rate of pay.
 
#10
I'd be tempted to take the cut, playing it safe, and hope it isn't just them trying to scare people/abuse the fear of impending layoffs.

I'd also keep my eyes open for other jobs!

(beat to it by Icon)

Do you guys have kids? No way your wife could take on some part time work? I know the UK and US systems are different, but many full time students manage to fit in part time work too?
 
#11
MEKer said:
Sounds serious. Sounds like someone likes you and is giving you a way out of an uncomfortable "soon-to-happen" event.
Click to expand...

That's what I'm thinking. I saw the list of people offered the spot, and its not huge. They sent it to some reliably strong performers in a few different departments via an email they "forgot" to hide the CC list on, against policy.

seanm said:
Wow that is tough.

Where are you are pay scale in relative terms? Could the new hires be making less money?

I work in high tech and, unfortunately, layoffs are a fact of life. Generally there are three ways they go:

1) All the juniors and intermediates are laid off. The idea here is to keep the senior people for when things pick up.

2) Lay off the senior people. The idea here is to get the most bang for each layoff.

3) Lay off entire departments. This tends to happen in companies that have cut all the dead wood they can and have to start cutting the core.

Of course, this assumes all the dead wood and under achievers are cut first. But I find number 2, while the most short sighted, tends to be the most common.

So I don't know what to say. Have you gone through layoffs before? Has there been a pattern? Although new managers can change the patterns.
Click to expand...

I'm a junior with this company, based on tenure, but I'm not in an entry-level position by any means. I got to join at a decent spot on the ladder due to prior experience. I'd hoped that would make me more difficult to replace.. but that also means that DOQ salary I signed up for makes me more expensive than entirely new people.

Munjibunga said:
When the economy turned down, I and my Board gave across-the-board 10 percent pay cuts to all employees in all companies of the group. Some people were laid off, but they were ones who were not performing well to start with. I think one or two people quit over the cut. This enabled us to keep our excellent employees while other companies of our type were going under.

Full pay has since been restored, and the companies are all running in the black.
Click to expand...

It would mean some cuts and sacrifices, but nowhere as many as would be required by being laid off. This being a temporary thing sounds like best case scenario.

i_got_a_mohawk said:
I'd be tempted to take the cut, playing it safe, and hope it isn't just them trying to scare people/abuse the fear of impending layoffs.

I'd also keep my eyes open for other jobs!

(beat to it by Icon)

Do you guys have kids? No way your wife could take on some part time work? I know the UK and US systems are different, but many full time students manage to fit in part time work too?
Click to expand...

No kids, but law school doesn't allow much time for working. Maybe next semester she could drop down to part time and pick up a job, but that wouldn't be until January.



Well, I've talked it over with the wife, and the mother-in-law who's got a bit of a female Mister Miyagi thing going for her, and seen the nearly unanimous opinions here. I'm going to head in tomorrow and accept the spot and beat the Friday rush.
 
#12
Munjibunga said:
If I'm reading the handwriting on the wall correctly, your company sees you as a valuable asset and is offering you an alternative to the fate of those who have already been laid off. If you don't have any irons in the fire, I'd take the deal, at least until something else pops up.
Click to expand...
I agree. I don't think they would offer you a lower-paying position unless your current one was at least being considered for elimination. I would suggest taking the offer, but make it clear that you prefer your current position and would like to go back to it if / when it is available.

Sorry man. Hope it works out for you.
 
#17
The new hires will be willing to take your position at a moments notice. That's what they were brought on for. There is a 90 day window to get the realignment done. Either they fill the newly vacant positions with the new hires or the new hires get let go before the 90 days is up after several veteran employees agree to the pay cut. Either way, your company will achieve the target overhead they are shooting for.

Brutal and effective big business.
 
#19
2 things stand out to me. If they need to save money then taking the cut is going to help them and make you look good in the long run with the company. Changing hours happens with a lot of companies; if they want or need you on another shift it could be to fill someone else's shoes they had to let go, and if you won't do it they may not see you as an asset anymore. The last bit where the change is to another department is the one that bothers me as you could end up under someone who may have to make some cuts in the near future, and cutting someone new to their team could be more attractive than cutting someone they've worked with for an extended amount of time. Just thoughts.
 
#20
Munjibunga said:
When the economy turned down, I and my Board gave across-the-board 10 percent pay cuts to all employees in all companies of the group. Some people were laid off, but they were ones who were not performing well to start with. I think one or two people quit over the cut. This enabled us to keep our excellent employees while other companies of our type were going under.

Full pay has since been restored, and the companies are all running in the black.

If I'm reading the handwriting on the wall correctly, your company sees you as a valuable asset and is offering you an alternative to the fate of those who have already been laid off. If you don't have any irons in the fire, I'd take the deal, at least until something else pops up.
Click to expand...


I agree. I took a 5 % cut for most of last year and while it sucked I kept my position. We were given back the 5% the first of the year with no raises again (2yrs) but we are recovering. Take it and wait out the changes, hopefully the company will recover and so will your pay.
Its too hard to start over today, I see this all the time in friends /family.
 

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