Whether it’s due to a slowdown in business, or the loss of a big contract, the end result is the same – your boss just told you the company is cutting your pay. Should you stick around, or is it time to jump ship? As one of the top employment agencies in Miami, Future Force knows it depends on the situation.
Situation #1: Everyone’s pay is getting cut.
If the company is going through a restructuring or trying to navigate its way through a downturn – and everyone, including company management, is having their pay cut – then you may want to consider remaining on staff. By reducing everyone’s salary, the business is not only trying to stay afloat and avoid laying off people, but is also sending the message that “we’re all in this together.”
That said, don’t accept the cut immediately. Take some time to think about it before you make any kind of agreement with your employer about your new salary. Keep in mind too that if you do decide to accept a cut in pay, it can significantly impact your starting salary at other companies in the future and also affect your severance package and unemployment, which are calculated based on your pay rate.
Before you make a decision, ask yourself:
- Is the cut mandatory? Or voluntary?
- How much will my pay be lowered?
- Can I afford the cut in pay?
- Is this a temporary situation? If so, how long will it last?
- Will benefits or bonuses be impacted?
- Will I have to work longer hours or take on additional responsibilities in addition to the cut?
- How will the company turn the situation around? Do I have faith in their ability to do so?
If you do decide to stick it out with your current employer, then try to negotiate better benefits or a more flexible schedule. For instance, agree to the cut in pay, but also negotiate a four-day work week rather than a five-day one.
Situation #2: You’re the only one facing a pay cut.
If you’re the only one facing a reduction in pay, then it’s time to face a harsh reality – your employer is telling you they don’t value you. They think that you’re simply another cog in the wheel, interchangeable with another employee or job candidate. If that’s the case, it’s time to dust off your resume and start looking for another opportunity.
Situation #3: You have a contract.
If you have a contract or are not an “at will” employee, then the company may not legally be able to reduce your pay. The cut in pay could constitute a breach of contract, in which case you need to consult with an employment lawyer.
If your pay is getting cut – and you want to move onto another opportunity, call the employment experts at Future Force. As one of the top employment agencies in Miami, we can give you access to opportunities at companies that offer rewarding work and compensation.
Contact us today to get started or search our Miami jobs now.