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Why should you take up a job with a pay cut?
According to an early report by Mercer consultancy, the hiring structure of Asia is going to be great. Hence there will be lots of attrition across the job sectors and industry. And the employee is faced with either of the two situations over here: - First, he/she will hop for another job which is high paying then the current one. Or he/she will hop to a job which is paying less. Ideally every one of us would like to see ourselves in the first situation, but lot of us end up in the second group. This article reviews the possible causes of people accepting a new job with lower salary.
Whenever a new job is offered, the following should be taken into consideration: -
1. Location: If the job is offered in a different location, then a comparison of the cost of living should be taken into consideration. A person shifting his job from Class A city to Class C city with a pay cut of say 10% will actually be having a better life as the cost of living is much lesser than 10% in Class C city.
2. Take Home Salary: - Most of the companies refer CTC (Cost to Company), the actual take home can be quite different. A higher CTC do not indicate a higher take home.
3. Incentive/Bonus: - If the new job is having a lower take home salary, but a much greater incentive plan or Bonus associated with job, then your hard work can compensate the pay cut associated with the new job.
4. Career Growth: - If the low paying new job has a great career growth, then the person can opt for it if he/she thinks that the individual can move up the corporate ladder quite quickly than the current job.
5. Job Security: This is the most important factor for job seeker as everybody would like to have a secure job for the future. No company guarantees 100% job security but a better financially placed company, better balance sheet can be looked upon.
Sometimes it becomes very essential for an individual to look for a job even it is low paying than the current or previous job. Here are the following such reasons: -
- Current Job Loss: If you sense that you may lose the current job due to various reasons viz. new policy, strict targets etc, then you will be forced to look for a new one even with a lower pay cut.
- No Job: This can be the case even if you do not have a job for quite a long time. Sitting idle and struggling to pay your bills is a hard hit. Then you may not compare the salary at all.
- Dream Industry: Some people are ready to take a pay cut to move into their dream industry or even to dream company. It is so because there are other possible benefits associated with the job.
- Better Boss: This is one of the prime reasons for most of the people to quit a job and join the other. It is often observed that boss takes his team or rather team follows their boss to the next company as most of the team members will be comfortable working with the boss.
- Happy Face: There may be some reasons due to which you are not happy with your present job even with a high salary. And lots of people move and take up a job with a lower salary if they think that they will be happier with the new job.
Decision is yours
Whatever be the case, the decision is yours. And no one will advice to take up things in a rush. Possible it will be advisable to analyze the job responsibilities, career growth and work ambience before you land up with a decision. There will be lots of noises around you, your friends, relatives, spouse etc with their advice, but it is you who is going to take up the new challenge and you are the best person to decide.