Ask the Headhunter Q&A: Should I Take a Cut in Pay?

Q: I've been unemployed for six weeks. Was earning around $120k. Have been offered a position at $85k and, quite frankly, I need the money. Even more important, I recognize that my self esteem is too bound up in my career: I need to work for more than just the money. Am seriously considering accepting this lower offer, because I believe these folks cannot afford to pay more. Will my chances of negotiating another position at a higher salary be irrevocably damaged? Advice, please, and thanks in advance.

A: You're facing a difficult decision, and you need to be sure you are keeping the key issues separate. How long can you afford to go without a job? How much time will you be able to devote to continuing your search while doing the job you're considering taking? How will being unemployed versus "under-employed" affect your self-esteem?

I could easily tell you not to give in yet, and that it would be smarter to continue your search. Six weeks is not a long time to find the right job. But being able to pay the bills is just as big an issue. You could borrow to meet expenses until you find something better--but how will that affect your motivation and effectiveness in job interviews? These are very personal questions that only you can answer, and I think you must answer them first.

In today's business climate downsizings and radical re-structurings (including mergers) are putting a lot of good people on the street. Many are taking lower salaries to survive so they can re-group and "play again." In a sense, they're taking temp jobs until the right job comes along.

Some employers are capitalizing on this by hiring great people cheap. Is this unethical? No less than accepting a low-paying job while continuing your job search. It's reality. In this volatile and uncertain job market, everyone's going to extremes to survive. You also have to consider that these "odd jobs" can serve as an education and re-tooling experience for some people--they give you an opportunity to gain a foothold in a new field or business.

Other employers are even smarter: they're keeping an open mind. They don't assume that because you took a pay cut, you're now worth less. They see an opportunity to land a great new employee who might not have been available to them otherwise. Their challenge is to find you progressively more challenging work so you'll stay even if other opportunities present themselves. (I shake my head in wonder when a company turns away candidates who are "over-qualified." It tells me the company doesn't know how to put talent to use to produce more profit.)

So, no, I don't think your chances for more money will be irrevocably damaged. What counts most in any job negotiation is what positive impact you're offering to an employer's bottom line--that's what wins you more money. Focus on conveying that critical message to an employer, and you'll always be able to negotiate for more money--with a current employer, or with a new one.

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Nick Corcodilos is the author of How Can I Change Careers?. He also writes the free weekly Ask The Headhunter Newsletter. Ask The Headhunter is a registered trademark.