Would you take a 10% pay cut if it meant saving an employee?
I just got out of a company meeting, and I'm flying high baby! My 2 weeks away from the office was a nice break for sure, but the economy was putting some doubt in the ol' job security department :( That meeting turned my frown upside down though!
Our CEO assured us that our company is staying strong, and that things are looking up for '09!! And not only that, but that cutting people is the last option on his mind! We'll still lose a few benefits here and there for sure (i can probably kiss my 100% matching 401k away), but at this point I'll TAKE IT! haha...I really don't feel like looking around for another dream job right now.
Before this meeting, however, I was playing a rousing game of "would you rather" with a few co-workers of mine, and we came up with a really interesting side question. And since it's one of my all-time favorite games to play, I thought I'd drop it on ya:
And since I asked it, I shall now answer it. While the frugal side of would get up and bitch-slap me, I'd 100% bite the bullet and take my pay cut. For one thing, i'm too much a panzy to risk losing my dream job no matter what the odds are ;) That, and everyone knows each other pretty well since we're a small company. I certainly wouldn't miss one or two of them, but I doubt they'd ever get fired anyways. So that would leave ME, along w/ the rest of my closest co-workers to get the boot.
I'd gladly give away $8k for total peace of mind. Okay, well not *gladly*, but I'd still do it. Who knows, maybe that good kharma would turn around and we'd all get rewarded down the road?!
How about you all? Would you tell the employee to F off, or would/could you pull out the get-out-of-jail-free card?
Our CEO assured us that our company is staying strong, and that things are looking up for '09!! And not only that, but that cutting people is the last option on his mind! We'll still lose a few benefits here and there for sure (i can probably kiss my 100% matching 401k away), but at this point I'll TAKE IT! haha...I really don't feel like looking around for another dream job right now.
Before this meeting, however, I was playing a rousing game of "would you rather" with a few co-workers of mine, and we came up with a really interesting side question. And since it's one of my all-time favorite games to play, I thought I'd drop it on ya:
"Would you be willing to cut your salary by 10% if it meant saving another employee? And what if there was a randomized chance that the employee in question could be YOU?"TOUGH one, right?! 10% is a lot no matter how much you make. And if you're not a great rainy day saver or budget'er like some are, this could def. knock ya on your feet. Plus, is it even worth the risk? Would you be more comfortable losing 10% than 100% if you were the unlucky employee? Even morally - could you stand by and watch your cube-mate walk out the door all because you couldn't chip in a little? Definitely no right or wrong answer here though...we all have our stuff going on.
And since I asked it, I shall now answer it. While the frugal side of would get up and bitch-slap me, I'd 100% bite the bullet and take my pay cut. For one thing, i'm too much a panzy to risk losing my dream job no matter what the odds are ;) That, and everyone knows each other pretty well since we're a small company. I certainly wouldn't miss one or two of them, but I doubt they'd ever get fired anyways. So that would leave ME, along w/ the rest of my closest co-workers to get the boot.
I'd gladly give away $8k for total peace of mind. Okay, well not *gladly*, but I'd still do it. Who knows, maybe that good kharma would turn around and we'd all get rewarded down the road?!
How about you all? Would you tell the employee to F off, or would/could you pull out the get-out-of-jail-free card?
Labels: career, crazy economy, would you rather
posted by J. Money at
10:28 AM
36 Comments:
I would - and I offered to recently. We just had layoffs at my company. However, my boss said that while the temporary pay cut can be an effective strategy in the short term, it doesn't work in the long term. If we thought we could have a quick recovery (say a few months) then we would do it, but over a long haul (like it looks like my company is in for) it becomes extremely hard on everyone. Especially since one of the problems is that there just simply isn't enough work for everyone.
Well, my company is huge, like over 3000 at our location so my odds of me or someone I know are much smaller than yours. If it were cut down to doing it within my department then that would possibly change what I think about it, but for the whole office I would not cut 10%, take that down to around 2% and then I might consider it for the odds. Also I think I could find some other similar work for similar company for about 10% less pretty easily anyway.
If the circumstances were right: it was a temporary/short-term revenue problem, it would get us through to a long term solution (because cutting everyone's salary a little is a short term solution), 10% across the board was appropriate to make up the amount of a salary, then yes.
I was just thinking about this very thing this morning. I wondered if the boss of a nearby department was laid off because it was more efficient to cut his single salary than to lay off multiple employees reporting to him.
I would be willing to do it, but then I would immediately look for another job. So does that mean that I'm not really willing to do it? :) I work for a large company and I'm always working with different people on different projects so I don't feel that close to any of my colleagues. Even if they asked me if I am willing to cut my pay 10% to save my boss's job, I would probably have to say no. I think I'm already underpaid for my performance.
I think that even in this poor economy, companies need to pay their top employees well. Since I consider myself a top employee, I am even planning on getting a significant raise (e.g. at least 10% or I'm leaving since I think I'm underpaid)
I love these questions :)
My answer likely depends on how insecure I feel about my personal finances at the time, more than how I feel about individual people or even a job.
The great people at this company, Ive worked with before and will probably work with again. And Ive come to realize that job satisfaction is directly related to how 'fair' you feel your compensation is.
In the short term, a pay cut would be ok -- but longer than a couple months and you feel shorted and start evaluating every dollar the company thinks about spending (did those 12 sales guys need that lunch paid for with 0 clients attending, was that 12k server we test on needed, etc)
In this economy? You better believe it! Less income is better than no income! If it looks like the situation won't improve with time, you can always start looking elsewhere...
I'm gonna sound like a hardass here, but to be honest, it would depend on what likelihood I thought I would be the person who was laid off. If the probability was high it would be me, I'd take the pay cut...if not, I wouldn't. If there was a concrete date where my salary would go back to normal I'd be more likely to do it.
Letting a bunch of people suffer for one person who may or may not be cutting it at work isn't a great option to me. It's affecting way more people by spreading it across the board. I understand it is easier for me to say this as I don't have kids, a mortgage etc. But there may be people that can't survive with 10% of their income gone. I hear alot of people I know saying they use/spend every penny they earn each paycheck (which is another issue in itself). I don't make alot of money (non-profit) so I could see myself getting bitter and upset having to do with a 10% pay cut. I'd sure as heck start looking for employment elsewhere.
oooh, game theory. :) what if, after everyone decided, it was revealed who chose what?
I think I would take the pay cut.
I totally believe in fate and karma - what goes around comes around.
A 10% cut right now (of my graduate student stipend) would kill me...but at my last job, I would have taken the cut...
I would take the cut, I already give away 10% of my (very tiny) income in tithe at church. I'd rather be charitable to others than hoard things for myself-- what comes around goes around, you know? I'm of the belief that the Lord will always provide, no matter what you are or aren't bringing in.
Not going to lie, I could not afford to keep my job with that much of a paycut, so I say, not to be mean, but let someone go. Even if its me. If I took the cut, I would need a new job regardless, so I might as well take the gamble right?
I do wish I could be in a position where I could afford to take the cut to keep someones job, but the way things are, its just not feesible for this one!
I would take the pay cut. Sometimes, we have to sacrifice to help fellow coworkers. If money was really tight for me with a 10% pay cut, I could always find ways to trim my budget...cable t.v., internet services, manicures/pedicures, salon visits, etc. Allot of people confuse needs with wants...if push came to shove...I'd eliminate some unneccessary expendiures and cut my salary 10%.
My company is over 12,000 people, so since Im working here, Im going to say no.
However, if I worked in a small shop where there were significantly less people, i would say Yes in a heartbeat. The main reason is shear numbers, less people means more opportunity to be compensated later. Sounds selfish but its the truth. Im a small fish in a big pond right now, id rather be sitting in a smaller pond and be willing to help out the other fish, big or small!
Homerun J Money
I guess it all depends on how confident you are in finding a new job quickly. It's possible that you could lose up to 10% of your current pay just by being unemployed before you find a new job. I have a friend who was laid off almost two months ago and finally got one job offer for a position that will pay her less than what she was making before. 10% is a lot, but I would probably take the pay cut just to save myself the stress of finding a new job.
I have to admit it bothers me that most of the answers here are all about (karma, goes around-comes around, if it was me..) selfish desires.
In my field, I am the low "man" on the totem pole by far and most of my coworkers all make more and could find a new job soooo much more easily than I. But I suppose I am a more empathetic person than most because I love my coworkers. I would hate to know that I could have saved a friend from unemployment by simply taking a pay cut. So yes, I would do it. And not because I would hope to be recognized, or hope to be compensated later. I KNOW I can get by on 10% less, most of us can if we are willing to make some sacrifices. I would rather sacrifice my tv, cell phone, etc, etc than a fellow employee.
One of my favorite quotes, and a lesson taught me by my father as a child is: Do the Right thing, not because of who might see you or know of it, but simply because it is the Right thing to do.
Isn't caring for our fellow humans the right thing to do? I think everyone being out for oneself is part of the horrible economic situation this country is in.
At my last job, I would have said no. Most of the other people working there were getting paid way too much for doing NOTHING (including myself), and I hated my job so was just itching for an excuse to quit. So that would have been an easy decision. Business is business.
But at my current job? Heck yes. I'd do my current job for a 50% paycut (shhh...don't tell my bosses). It is my dream job and I live out of the country (out of the US, that is). With the crisis in the US spreading worldwide, jobs are scarce around here, especially in my field, and especially with my work permit status.
Oooo...I have to say that I wouldn't! Sounds awful, hey? But I worked my ass off for my pay rise this year and to see it vanish again would be so demotivating I would probably start looking for a new job anyway. And if I knew that I had had my job saved by everyone else taking a pay cut I would feel awful and guilty. That's just my initial thoughts though, maybe they'll change after more reflection..
I don't work outside the home but my husband recently had to take one week unpaid vacation to help the budget. What surprised me the most was the people who were going to lose their jobs were the ones complaining about taking the time off. They knew they would lose their jobs if everyone didn't agree to take the time. I think they should have been even more willing to take the days.
If I lost my current job and got a new job, I'm more likely to take a pay cut of more than 10%, so my answer would be yes. I would sacrifice a little now for the betterment of the whole.
Small company, yes. Big company, no. I know too many folks who've worked for big companies like United Airlines that agreed to a pay cut to save jobs, and then the guys at the top got enormous bonuses just months later.
And J Money, if the company is doing so well, why would you feel your 401K matching was threatened? It would eat at me if I thought they decided to reduce or eliminate that just because all the other CEOs are doing it, y'know?
Like this question, do ya? same here :) these are the things that go through my brain whenever i start getting nervous @ work...i'm sure the CEO thinks about different variations on his own anyways, but i'd like to think i'd be able to help if ever asked!
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So which side's the winner so far?
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YES to paycut: 10
NO to paycut: 5
MAYBES to paycut: 4
I'm impressed! I thought there would be more no's to be honest with ya, but it looks like most are willing to do a little w/out - whether for selfish reasons, or to save a fellow worker.
Whichever way you answered, THANK YOU! We're all different, but we all add something to this crazy financial world of ours. Discussions like these are what keeps me excited to blog :)
@Dawn - Yes, that's a great poing. If it's temporary, then that's fine. but if long term, it could really be hard on everyone, and prob. result in some firings anyways...although it would give you a few months of time beforehand.
@Kaitlyn - i know YOU would. You're one of God's Angels!
@Budget Save Buy - Yes, GREAT POINT. I can tell you for a fact i wouldn't get payed nearly the same if i left and found a similar job. I get paid a dream salary for a dream job, so unless i change fields, i'd lose a lot more than 10% leaving.
@NorCalRN - I LOVE that quote :) My mom once gave me a painting that had a similar quote like that on it and it hangs in my bathroom. So whever i pee i think "better do the right thing!" haha...
@MoneyMateKate - I think we'll lose our 401k becuase our CEO told us so :) Well, he said he had to analyize it and make some changes, but we're getting 100% match of whatever we put in (which is a miracle realy) so it's naturally good to cut that first i'd imagine.
I said "yes" to this question 4 years ago at a job that I no longer have.
It stung, but it was worth it to me.
After lots of thought...yeah I would take the cut. If I had to be selfish and not do it then karma would come back and kick me in the teeth....but if you throw out the good vibes and take the small cut so someone can keep his or her (or YOUR) job then karma will come back and hug you in the wallet. :-)
Ok, so I had to update... about 8 hours after I posted my comment here, I found out that they are closing our hospital in 90 days. So I will be officially unemployed like so many other fellow Americans as of April 10th. *sigh*
Based on everything I have been learning, hearing, experiencing in the last couple days.... I want to reiterate that I would GLADLY take a LARGE pay cut in order to keep this hospital open, and prevent us all from having to find new jobs. I think about my coworkers with small children at home; particularly one friend whose husband was also laid off 3 months ago. How could I not be willing to do my part to prevent all of this chaos??
Unfortunately that will never be an option, thanks to our evil Nurse's Union. :( Grrr.
I work for a rather small company. Chances are, I would know the person AND perhaps more importantly in the context of this hypothetical, be aware of his/her work ethic. So, maybe. I would want to know who I was/not saving. It's probably also relevant to point out that I do not make very much and a 10% cut would hurt.
Interesting idea. I wonder how many companies out there would allow employees to do this but then turn around and cut someone down the road anyways, and then pocket the money. I guess I've seen more than my share of 'greedy' companies, where I might not necessarily trust that this would actually work. But it's a great thing to think about.
I would absolutely take a pay cut. We have to help each.
Interesting Question - It completely depends on the employee who would get let go. I am a hard worker and put in lots of hours. There are others who do the minimum and that is fine. However, if it comes down to me taking a pay cut to keep one of these people - I probably wouldn't do it. Likewise, if it was someone that is hard working - then yes I would do it.
no i would not take a paycut of any sort! politicians should take a paycut they are getting paid more than anyone else and are happy enough to keep giving themselves a payrise throughout this recession! people taking pay cuts will not help the economy because the politicians are just sucking up all the money paying themselves 100,000 or 200,000 a year! who else do you know getting that much? no one exactly!
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The YES's are still in the lead!
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YES to paycut: 13
NO to paycut: 6
MAYBES to paycut: 6
And that is HORRIBLE NorCalRN :( I am sooooo sorry to hear that! while it sucks to hear it, at least you have plenty of time to start looking? not to mention you're in a GREAT field :) Maybe you can get some cool bonuses to sign up at another hospital???
what if it your first day on the job?
i think i would take the 10% pay cut if offered rather than lose the lot! YES YES YES.
I already take 10% of my earnings and give them to fellow employees - its called a "tip-out". Yes, I earned the money. Its MINE. My employer hires people to stock beer and refill the ice wells..... and then expects the bartenders to PAY them their salaries. There is no choice. If you say no, you are fired, no questions asked.
It wouldn't be so unfair if waitresses tipped out the bartenders, but they don't. So basically, every night I work, I take 10% of my earninig and give them to someone else, who for practical purposes, stocked my beer when I was low (which I can and have done myself) and refilled my ice well (again, which I have done myself before my boss decided to hire barbacks. For the first year and half at this job she didn't have barbacks so the bartenders did it all.)
I don't mind helping someone hold an honest job, though. But I will say this, if I am paying, I expect my stuff to be full all the time. If I am more than half empty, I am quick to get on that walkie talkie and ask where my stuff is. I am paying for the service, after all. And, the more people I can serve, the more money I can make, which means more money for them as well.
I think the whole decision will depend on you. If you can keep your colleague just taking a cut of 10%, then its good. I will do it. But it will again depend on the field for many people. Taking a 10% job cut should not be a problem for employees, which I am not.
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