Last month I wrote a post about my DH not getting a raise this year, but intead getting a large bonus so the company wouldn’t be locked into higher salaries for people. Well a person wrote and asked “is it better to take a salary cut or get laid off?”
Turns out this topic was recently discussed on Yahoo Finance. Companies are considering paycuts to stave off layoffs. In 2008 5% of businesses cut salaries as a way to save on costs. It’s expected more will do the same in 2009. The paycuts will be between 10-20%. Interesting only 17% of people would accept a pay cut, but 69% of people are concerned about their jobs. One stay at home mom said it’s unfair to cut salaries, because you work hard to live on one income and suddenly it’s not feasible anymore.
Honestly? I think it’s better to have a job with a reduced salary than to not have a job at all. I’d be happy with a paycut, if I knew the alternative is no salary at all. You can always look for a job at your old salary while working. I’m surprised that so many people would be against a paycut. But I’m thinking it’s more because it’s just a hypothetical situation. If people were really called into the bosses office and asked, your job or your pay; then the answer might be different.
Also I believe that right now the reality of the recession is just hitting. If we stay in a long term recession or move to a depression then people might have a different answer. Would you take a paycut or would you rather be laid off?
Sorry, there are no polls available at the moment.
9 responses so far ↓
1 Fabulously Broke // Jan 20, 2009 at 11:52 am
Pay cut for sure. Having a job is always better than trying to find an elusive one that may or may not pay you the same amount out there.
The bonus was a smart idea.
Fabulously Broke in the City
“Just a girl trying to find a balance between being a Shopaholic and a Saver.“
2 savvy // Jan 20, 2009 at 1:16 pm
That’s a hard one. I’d probably be very tempted to take the layoff. I’d get severance pay as well as unemployment and I’d use the time to figure out what I want to be when I grow up and/or pursue other interests.
3 judy lee // Jan 20, 2009 at 2:01 pm
pay cut-
Barack Obama
4 fengshui // Jan 20, 2009 at 3:23 pm
I would take a paycut, but I have to admit, I would be EXTREMELY bitter about it, and would likely have a lower morale at work (surf the net more, slack off, etc). I feel like it would be extrememly difficult to keep up the same pace of productivity, or increase my productivity for LESS pay….. I know that sounds terrible, but it is the truth. I don’t think that I’m alone in that thought.
5 SimplyForties // Jan 20, 2009 at 8:26 pm
Pay cut, no question. A lot easier if the moral at the workplace was one of a team where everyone was taking that pay cut. Otherwise it would be pretty miserable.
6 lisa // Jan 21, 2009 at 12:58 am
Hi! I ‘m not sure, as the unemployment would probably be about the same , as what husband would get if he had to take a paycut.It may happen this month, being laid off that is. There have been 25 laid off last week. This place been in business over 75 years & had no debt at all , never has had. Never have laid off over the years either.
7 Mrs. Micah // Jan 21, 2009 at 1:24 pm
Pay cut. I might start looking for other work, but I prefer to job hunt while employed!
8 LivingAlmostLarge // Jan 21, 2009 at 8:31 pm
I definitely agree about paycut but I wonder if it isn’t dependent on how bad the economy seems at the time? If it’s good, then a firing. But if it’s bad like now, then a paycut.
9 Meg // Jan 22, 2009 at 12:22 am
Take the pay cut!! You can always look for a better paying job, but it’s better to do that while making 20% less than while UNEMPLOYED. And if you don’t find one – you aren’t totally screwed!
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