Workers Accept Pay Cuts To Stay On Job

In the light of the nearly 9.4% U.S. unemployment rate more people are willing to accept pay cuts. According to the 2009 Annual Career Fair Survey released by Next Steps Career Solutions, nearly 65 percent of out-of-work respondents said the would be willing to accept a pay cut. The would accept up to 30% lower than their previous salary.

Nearl three percent and four percent, respectively, said they would accept up to 40% and 50% of prior pay.

"In the old days people would expect to get at least a 10%-15% bump when they were making a transition from this job to the next," said Paul Bernard, an executive coach and career management adviser who runs his own firm. Now, "being asked to take cuts in the 20%+ range is pretty standard."

Survey information is reported in today's CNN.

Before you agree to your pay cut you need to consider few things. First there should be full communication between you and your employer. You need to make a careful calculation if the new proposed pay cut will cover your bills or no.

Consider the following. Can you survive financially on the amount of the reduced salary. Think about what elements or benefits of your salary is being cut. Is there an incentive to encourage you to accept a pay cut or is there an incentive to encourage to earn more based on performance.

Do not agree on open-ended pay reduction. The last is that you should ensure that everyone gets a pay cut. If it is a good team work, the management needs to get a pay cut as well.

Written by Armen Hareyan