Is a pay cut worth it?
When looking for a new career opportunity, a pay cut is something that may come up with a job offer. There are factors such as experience, field of work, job demand and potential for growth that all affect a salary offer.
Deciding whether or not to take a pay cut with a new position can be difficult and is best done after looking at the pros and cons of the opportunity.
You are changing careers
Jobs within your existing field and changing industries should be treated differently. For a new career, it is likely that you will need to take a pay cut to gain a new set of skills and establish yourself in the industry. Before you take the offer, make sure that the rate of pay is competitive and assess the opportunity for future promotions, to ensure that this pay-cut will not be something permanent.
You want to improve your work-life balance
Your work-life balance is crucial to maintaining your physical and mental health. Taking a new role that reduces your workload will result in a cut to your pay. Find the balance right for you and consider if what you will gain back in family time, free time and a reduction of stress compensates for your pay cut.
Opportunities for future growth
The short-term loss in salary may be worth it in the event that the new job opportunity has the potential to grow your salary past your current earnings in the future. For example, young businesses and startups with proven growth periods of time may be a good choice if you get in early and reap the financial rewards in time. Making less money in the short term may not be too bad if your salary, job satisfaction and experience are growing in the long term.