How to Keep Your Job

CNN Money offers some suggestions on how to keep your job if you're in a situation where you think it's on the chopping block. Their suggestions:

So if your job really is in danger (and you'd rather have less money than no money) you need to address that fear head-on. Let the big guy know you're willing to work, contentedly and productively, at a lower wage than you currently receive.

Some possible openers: "I don't consider salary a final measure of my self-worth." Or "My friend Peter stayed on at his job at lower pay to help keep his company afloat. I really admire that."

Generally, I HATE this idea. It's going backwards financially and can do permanent damage to your most valuable financial asset. That said, these are unusual times that call for unusual moves.

If I was in a situation where I thought my job was up for elimination, here's what I would do:

1. I'd talk to my boss to see if there's any possibility that my job was on the chopping block. He may or may not be able to tell me, but even if he said "no", sometimes it's possible to read a "yes."

2. If I felt the job was in danger, I'd offer to take a cut (using the thoughts above), but try to get something out of it. For instance, I'd tell him that I'm flexible in my work arrangement and if they needed to cut some payroll, I'd be willing to work four days a week at 20% less salary. Or perhaps I could trade time off (something that doesn't cost the company anything) for a reduction in pay. If he goes for it, great. If not, there's no harm in asking. If he doesn't/can't take one of my offers, I'd go for the straight reduction in salary.

3. If I got the extra time, I'd use it to develop a side business and/or look for a new job. If I didn't get the time and just had to take the reduction in pay, I'd start looking for a new job immediately. In this economy I'd probably have to be very patient to find new work, so I'd want to get at it ASAP.

4. I'd be VERY patient on the new job front before I took the leap to a new place (as long as I felt semi-secure where I was) -- no need to jump from the frying pan into the fire.

5. Once I found something I liked, I'd make the move.

BTW, a few things that give you a lot more flexibility than most people have in this sort of situation are:

• A fully funded emergency fund
• No debt (or as little as possible)
• Extra savings (that you may have intended for something else -- like a new car -- that can be used to supplement an emergency fund)
• Lots of cushion between what you earn and what you need to spend to live

What's your take on the situation? Would you take a pay cut to keep your job? If so, how much would you be willing/able to go down?

Comments

[Corporate Barbarian]

Given the current job market, I'd have to say yes (but don't tell my boss). I'm already following the 4 tips at the bottom of your post, and have started to develop alternative income streams. Hopefully, that will provide some added cushion.

[John]

Unfortunately the ball is not in the employee's court these days. Do whatever it is you need to keep your job until things pick up. Paycut, less hours, whatever. Be happy you have a job and start your job hunt. The market sucks now but if you keep looking you may eventually find something better.

One thing I have learned from the economic downturn is don't put all your income eggs in one basket. Diversify your income streams. Easier said than done of course. I apply the same logic to investing after watching the Madoff scandal unfold.

[SaveBuyLive]

Personally, I don't like the idea of taking a lower salary at the same job. This might work if you work in small business where you have a personal relationship with the person who pays your salary. When you are dealing with an actual human things get easier because they'll actually sympathize with you and if you are at least mediocre they'll probably want you to stay around.

It's very difficult for me to accept that a large corporation is going to care if you're willing to take a few thousand dollar pay cut. These companies can lay off entire departments without noticing. Once an HR department becomes involved you've stopped dealing with people who will ever actually care about you. They'll happily kill the whole department or terminate people based on seniority, lack of seniority, salary, benefits or the results of the magic 8 ball.

If you are going to get cut, you are going to get cut. So reduce your expenses and grab as much as you can off of your employer before you leave. In terms of both salary and office supplies ;)