Would You Take A 20% Pay Cut For Work Stability?
For some, 20% might seem to be a significant pay cut. Others, however, might be willing to take the risk in exchange for a steady pay check in the long run.
A recent report from JP Morgan Chase Paychecks, Paydays, and the Online Platform Economy found that 55% of Americans experience serious monthly variations in income. Additionally, pay can fluctuate as much as 30%. The report revealed that employees want stability in their work schedules as well as their pay. While many workers are unable to handle a decrease in pay greater than $500 a month, some are actually willing to take a lower wage in exchange for a steady pay check in the long run. However, such results certainly not surprising. After all, lower wage is not as huge a sacrifice as it once was. These days, employees rank compensation behind office culture and career opportunities amongst others.
Workers no doubt want stability during unstable times. Moreover, it is not uncommon for businesses to make quick and sudden decisions, which could create uncertainty for employees. However, from the study, it found that most employees would be willing to take home a lower pay if several other workplace conditions are met. For instance, flexible work schedules, fancy employee perks, employer empathy and trust. Similarly, gathering employees’ feedback and opinions on workplace issues also demonstrates respect for employees and their contributions to the organisation. Likewise, attrition rates are likely to remain low when work-life balance is more respected within the organisation.
Similarly in Singapore, markets are prone to fluctuations and layoffs. While everyone would no doubt want to get a rise, poor economic situations might results in layoffs or even a pay cut if you are lucky not to lose your job.
However, the Singapore Government has recently announced that older public servants who are re-employed at the same job grade will no longer have their salaries cut. If you happen to not be working for the public sector, fret not. There are plenty of ways to still survive a drastic pay cut in Singapore.
Nonetheless, the big question here is whether you should ever accept a pay cut for work stability? While there are plenty of deciding factors, the ultimate decision should be based on what you value the most. If salary is the most important aspect of your job, then it would definitely be best to find another job that offers a higher pay. However, given that employees these days seek a well-rounded package that goes beyond mere compensation, perhaps it might be more worthwhile to accept a lower pay in exchange for a stable job in the long term.
This a guest post by RenQun Huang of Gpayroll. The views expressed here are of the author’s, and Zegal may not necessarily subscribe to them. You, too, are invited to share your point of view. Learn more about guest blogging for Zegal here.
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