A Promotion with a Pay cut

[Geko]

Would you take a promotion if it meant taking a 30% pay cut?

On the one hand you get more opportunities, but on the other it's a large chunk to lose.

[CallmeGoose]

If the opportunities lead to future wage increases then yeah, if not then in this current economic climate I would def pass up the promotion

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[scoobypatch]

i've gone the opposite way! 20% pay rise, but title changed.

was Design Technician, now i'm a technical Assistant.

[Geko]

If the opportunities lead to future wage increases then yeah, if not then in this current economic climate I would def pass up the promotion

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Future Opportunities would lead to a greater wage increase. More than current wage. So at least a 30% gain. But these opportunities are in no way promised, and will be much more of a long term plan. Looking at a few years on the lower wage.

[DejaVu]

Promotion means more responsibility.
Pay Cut means less cash.
You do the math...!

It's a way for your company to get you doing things you wouldn't normally have to for less money...
The more 'opportunities line' in most cases is to get you to agree with it.

I would always refuse more responsibility unless I was being rewarded for it.

On the other hand, if you have it in writing (contract) that you are eligible for a pay raise after an agreed training period, go for it.

[I Black Belt]

No.
theoretical opportunities don't pay the bills, neither does an inflated title.
If the concern is related to whether you can do the job, then a secondment is a good way forward. That way, you get the pay, they get the individual and if it doesn't work out, both sides can end it at anytime.

[CzarJunkie]

Promotion means more responsibility.
Pay Cut means less cash.
You do the math...!

It's a way for your company to get you doing things you wouldn't normally have to for less money...
The more 'opportunities line' in most cases is to get you to agree with it.

I would always refuse more responsibility unless I was being rewarded for it.

On the other hand, if you have it in writing (contract) that you are eligible for a pay raise after an agreed training period, go for it.

That's a very poor attitude. It's often the case that managers earn less than their subordinates due to missing out on shift allowances, weekend working, overtime etc. ?

However, if you want to build a career you may have to make sacrifices in the short term in order to succeed in the long term. I'd sit down with your manager and discuss the opportunity. You should be able to assess your potential career path and make a more informed decision.

The last thing I would immediately think about was the money, especially if you want to build a career.

[Geko]

That's a very poor attitude. It's often the case that managers earn less than their subordinates due to missing out on shift allowances, weekend working, overtime etc. ?

However, if you want to build a career you may have to make sacrifices in the short term in order to succeed in the long term. I'd sit down with your manager and discuss the opportunity. You should be able to assess your potential career path and make a more informed decision.

The last thing I would immediately think about was the money, especially if you want to build a career.

What you have said has basically hit the nail on the head. It's going from a technical grade to a management grade. I want the change of career path, but 30% is a large drop and will affect my mortgage potential, as I am also looking for a new place.

[big-paul]

Every promotion I've had I've initially lost money until I gain the experience I need to be trusted to crack on on my own. Then I've eventually, within 18 months, ended up making more money. When I moved job a couple of years ago (not a promotion but my choice to move) I lost almost 90% of my overtime potential and lost about £25-30k. BUT, you do need to plan ahead for the drop in accessible cash, when I lost my OT last time I had about a year to plan and prepare for it.

Good luck whatever you choose.

[Mule]

If you go to a new employer for an interview you can tell them that you have been offered a more responsible role but it would have meant a significant pay cut that you couldn't afford to take.

If however, you go to a new employer with a better job title but lower pay then they'll likely base your wages on your leaving pay and see you as a mug that they can do the same thing to.

Depends if you want to stick with the company IMHO.

[Sanj[UK]]

What you have said has basically hit the nail on the head. It's going from a technical grade to a management grade. I want the change of career path, but 30% is a large drop and will affect my mortgage potential, as I am also looking for a new place.

Is it not possible for you to take the promotion and see how you do for a few months and then decide? I know a few 3rd line engineers who went down the managerial route and then ended switching back because they hated the manditory customer facing side of it, non-paid overtime (50hr + weeks) and be prepared to make their blackberry a new member of their family.

[Sanj[UK]]

Every promotion I've had I've initially lost money until I gain the experience I need to be trusted to crack on on my own. Then I've eventually, within 18 months, ended up making more money. When I moved job a couple of years ago (not a promotion but my choice to move) I lost almost 90% of my overtime potential and lost about £25-30k. BUT, you do need to plan ahead for the drop in accessible cash, when I lost my OT last time I had about a year to plan and prepare for it.

Good luck whatever you choose.

This is where im stuck. As soon as i get promoted i loose my OT (13-14k) company car. mobile, laptop, free time and il be stuck in a office. But it needs to be done to earn the ££££. Im fucked.

[beansontoast]

Take the promotion.

I did the same just under four years ago for a salary reduced by roughly £3k. One year later my manager increased my salary by £6k and it continues to rise.

If you think only of the money and not the progression then maybe you're better off where you are. I took the decision a decade ago that there was no way I was going to end up a lathe operator for the rest of my life, so I did something about it. Without going through my whole story (it wasn't easy) I worked my way out of a production role and into a product development role. Believe me if you take a promotion the conditions are nearly always much more favourable. I have a lot of flexibility now and it beats the hell out of operating a machine for nine hours a night. Today the chief engineer of a Japanese auto company came from Japan for an all day meeting with me & four colleagues. Rewind four years and I was miserable and working with miserable pricks.

Nothing exciting ever happened to someone who said no to an opportunity (work, or otherwise).

[Over Carl]

Tbh, I see this as a gamble. Yes there are reasons managers sometimes get paid less then the staff they manage, but by taking the leap you will be getting good experience that will hopefully pay off for you at your current firm like beansontoast's experience.

However, for the kind of work I would be looking for, I've noticed a lot of "analyst" positions that seem pretty much just like "administrator" postitions from before the credit crunch except they pay a lot less. Also I've previously seen loads of middle managers who I see as having no chance in moving up the career ladder, but after some time in a management role the option to them to return to a techie role may not be open.

One potential way to try and work something out - explain this is exactly what you have wanted, been dreaming about, planning for, etc and you are so happy with being recognised at your current firm, but to enter into an agreement with a reduced salary would be a breach of your mortgage covenants.

To reiterate my stance, I see either option as a gamble so don't blame me if my suggestion goes tits up.

[Zippeyrude]

hell no

its a demotion

all the stories of opportunities may come to nothing, you will be employed for you to do the task at hand. The employer is not employing you for your future opportunities.

Another thing is that employers look at salary as an indicator of seniority, skill, etc. What happens when you want to take the next leap and they consider that the jump in salary of 30% is 'too much'. You'll be fooked. Think about it - on the surface an employer will look at people going for a 30k job and consider the one on 25k to be a more natural progression than the junior person on 20k who is aiming for the stars. Im not saying a leap of 30% upwards is not possible, clearly it is, but its a much harder sell.

Given the prospect, why dont you aim for a win-win job - one that pays more and also has opportunities!

[Goldberg]

I have done something similar about a year ago.
I was managing and R&D team in my last company and I have now moved to a bigger company as one of the pawns.

I did not actually lose any salary, they paid the same (last company were poor payers because of the economic climate), but I did lose benefits like a matched contribution pension scheme and free Bupa Healthcare.
I do not see the potential in moving up the ladder anytime soon, but I am learning new skill that should see an increase of salary or more opportunities in the future.
Also in that time I have received a small rise, got my free Healthcare back and I am in a Salary Sacrifice Pension scheme that I am told will be 'Matched Contribution' in the near future.

Also I am now able to claim things like Overtime and my overseas travelling is at a minimal/zero which is good as we want to start a family.

It was tough at first... but now I am much happier and know I can be happier still.

[beerman]

I did the same recently and took a promotion which resulted in a pay cut. My new role meant I lost around 10 hours a week in overtime so a considerable chunk of money. On the plus side I no longer do 50 hour weeks and get to do projects that I feel are contributing to the business.

[Geko]

I will be moving from a technical grading to a management grading. I will lose over 20k a year. Which is a significant chunk. It is for the same large company. The basic is a tiny, tiny bit better. But I will lose all OT and Call Money. There is a better bonus scheme, but I am not sure about the particulars, so haven't calculated it. The reason I am staying with the same company is that the wages are very good and they still use a final salary pension which is very good.

Many of my peers have taken the same route, and taken a pay cut, and ended up on a far superior wage as senior managers. The only doubt I have is the effect it will have on my mortgage applications, I am currently looking for a new place after a divorce, and in the current climate need as much money as possible going through my payslips....


Thanks for all replies.

[ant3b]

you must be on a good wedge if 20k is 30% jesus...

can i have your old job

[Geko]

you must be on a good wedge if 20k is 30% jesus...

can i have your old job

Yeah. It's not bad... lol... But I do work in London. So I can't get much for my money.