Latest news with #paycut
Forbes
10 hours ago
- Business
- Forbes
Is A Pay Cut Worth It? What Every Job Seeker Needs To Know
Get expert advice before deciding if a pay cut is the right career move. Most people assume career growth means each new role should bring a bigger paycheck. But recent data reveals a surprising shift in how professionals think about salary trade-offs. According to LinkedIn's latest Workforce Confidence survey, more than four in 10 job seekers are willing to take a pay cut, especially for companies that align with their values, offer better promotion opportunities, or provide more flexibility. This openness varies dramatically by employment status, with active job seekers far more willing to accept reduced compensation than their employed counterparts. Before determining whether this strategy makes sense for your career, you need to understand what constitutes a pay cut and weigh the potential risks against the benefits. Four in 10 job seekers are open to a pay cut if it means flexibility, promotion, or value alignment. A pay cut represents any reduction in your total compensation, including salary, bonuses, benefits and other perks with monetary value. To determine whether a pay cut is worthwhile, you need to analyze the entire package. For example, a role offering a 10% salary reduction might actually benefit you if it includes better health benefits, higher retirement matching, or valuable equity. Location matters, too. A reduced salary in a city with a lower cost of living might boost your purchasing power and quality of life. The most apparent risk involves meeting current financial obligations such as mortgage payments, student loans, childcare costs and other fixed expenses. This situation creates immediate pressure on household budgets and may require significant lifestyle adjustments. The impact becomes most challenging for job seekers who support families or carry substantial debt. A 15% salary reduction might seem manageable in theory but could prove devastating if you have a tight monthly budget with little flexibility. Salary reductions can create lasting effects on lifetime earnings. Future employers often use current compensation as a baseline for new job offers, potentially perpetuating lower wages throughout your career. This compounding effect means that a temporary pay cut could translate into hundreds of thousands of dollars in lost lifetime earnings. The phenomenon becomes especially problematic in industries where compensation benchmarking is standard practice. Some industries and professional networks still view pay cuts as red flags, assuming they signal career problems or poor performance. This stigma can harm your professional reputation and lead colleagues to question your market value. The perception may follow you to networking events, industry conferences and future job interviews, potentially limiting advancement opportunities even after you've moved on from the lower-paying role. Lower compensation can reduce your leverage in future salary negotiations. Employers may question your market value or assume you're willing to accept below-market rates. This dynamic can create a cycle where each subsequent role offers compensation below your true worth. Faced with tough financial choices, more job seekers are asking: Is a pay cut worth it? For job seekers looking to transition into a new industry, pay cuts often serve as a bridge to new fields. A marketing professional transitioning to data science might accept reduced compensation while building technical skills and industry credibility. This initial financial sacrifice also opens doors to higher-growth sectors or roles with better advancement potential. Technology professionals who accept pay cuts to join early-stage startups, for instance, frequently realize significant long-term financial gains when their equity appreciates over time. Research from Harvard Business School provides compelling evidence about how professionals value flexibility. In a study of more than 2,000 workers, professors Zoë Cullen and Christopher Stanton found that 40% of respondents would accept a pay cut of 5% or more to maintain remote work options rather than return to the office full-time. Surprisingly, 9% would trade 20% or more of their salaries to avoid the office entirely. Savvy job seekers utilize roles that offer superior learning opportunities, mentorship access, or exposure to cutting-edge technologies to accelerate their career development in ways that justify short-term financial sacrifices. Consider professionals who accept lower-paying positions at prestigious consulting firms, technology companies, or investment banks. Brand recognition, skill development, and access to a network frequently enable significant compensation increases in subsequent roles. LinkedIn's survey data shows that 42% of active job seekers would accept pay cuts to work for companies better aligned with their values. This willingness reflects how individuals are increasingly recognizing that job satisfaction extends beyond financial rewards. Professionals working for organizations whose missions resonate with their personal values often report higher engagement, reduced stress, and greater overall life satisfaction. Startups and growth-stage companies frequently offer equity compensation to offset lower base salaries. While these arrangements are risky, they can generate substantial wealth if the company succeeds. The potential upside often justifies accepting a pay cut. Beyond financial returns, equity ownership fosters a psychological investment in the company's success. This alignment can lead to accelerated learning, expanded responsibilities, and rapid career advancement as the organization grows. Before job seekers consider a pay cut, careful preparation is essential: The decision to accept a pay cut requires job seekers to carefully consider their circumstances, career goals and risk tolerance. "In the boom times, taking a pay cut was looked at askance—that you did something wrong in terms of career development," says Michael Zwell, PhD, CEO of organizational development consultancy Zwell International and author of Six-Figure Salary Negotiation. "Now, you have a strong case to make if your company made significant cutbacks and you took a job that, given the market, was the best available job to support your family." Ultimately, the best compensation choice, whether accepting a pay cut or holding firm on salary, is the one that positions you for both immediate success and long-term career satisfaction."
The Sun
6 days ago
- Business
- The Sun
Birmingham bin misery could go on until CHRISTMAS as workers vote to continue strikes
Birmingham bin workers have voted to continue industrial action in a dispute over pay and jobs. Strikes could last until December with Unite announcing the continued industrial action. 4 4 A massive 97% of workers voted in favour of continued strike action. Nearly 400 bin workers from Birmingham, who are facing pay cuts, voted to continue the strikes. Strikes initially began in January after workers were told they could face pay cuts of up to £8,000. Refuse workers said the cuts would leave them struggling to pay their bills. The strikes have caused rubbish to pile up on the city's streets with huge rubbish piles now appearing across Birmingham. Residents have reported a growing vermin problem as rats and bugs swarm the filthy streets. The council brought in temporary workers to cover for the striking bin men. Unite general secretary Sharon Graham said: 'After smearing these workers in public since January and telling them to accept a fair and reasonable offer that never existed, the council finally put a proposal in writing last week. 'True to form, the proposal came weeks late and was not in line with the ballpark offer discussed during Acas talks in May. "It had been watered down by the government commissioners and the leader of the council despite them never having been in the negotiations. 'It beggars belief that a Labour government and Labour council is treating these workers so disgracefully. "It is hardly surprising that so many working people are asking whose side Labour is on. 'The decision makers at Birmingham council need to get in the room and put forward an acceptable offer. "Unite will not allow these workers to be financially ruined – the strikes will continue for as long as it takes. Unite calls on the decision makers to let common sense prevail in upcoming negotiations.' 4 4
News.com.au
27-05-2025
- Business
- News.com.au
Galvin's Bulldogs paycut unpacked
NRL: The NRL 360 panel discuss the Lachlan Galvin camp taking a significant paycut for the move to Belmore.
Daily Mail
23-05-2025
- Entertainment
- Daily Mail
Loose Women 'in chaos as stars doing the show through gritted teeth' as 'terrified' presenters face pay cut
Loose Women is reportedly in chaos as some of their top presenters are doing the show 'through gritted teeth' as they face a 60 per cent pay cut. ITV confirmed dramatic changes to their daytime TV schedule on Tuesday, with Lorraine Kelly 's show slashed from an hour to 30 minutes and, like Loose Women, will only air 30 weeks of the year. Some of the stars are believed to be 'furious' and 'insulted' over the shake-up, and are already fearing inevitable job losses. A source told The Sun: 'It's very tense backstage as the cast are all fuming. It's like they're putting on a brave face and doing the show through gritted teeth. 'Some people's pay could be cut by 60% as some get paid by the episode and they'll be slashed next year. 'For some it's their main source of income and it's worrying to everyone.' From A-list scandals and red carpet mishaps to exclusive pictures and viral moments, subscribe to the DailyMail's new Showbiz newsletter to stay in the loop. It comes after MailOnline reported that the stars of Loose Women are 'terrified' by ITV's cuts after bosses announced the daytime show will only air during school term times. Anchors Ruth Langsford and Kaye Adams , both 65, and presenters Nadia Sawalha , 60, and Denise Welch , 66, are believed to be 'angered' and 'panicked' about their livelihoods being at stake, causing uproar behind the scenes. Top TV talents including Lorraine, 65, whose career spans over 40 years, are believed to be 'furious' and 'insulted' over the shake-up while the Loose Women are already fearing inevitable job losses. The new regime, set to come into effect in January, will cost a potential 300 staff members their jobs as a consultation period begins as soon as today, lasting until September, before employees are finally let go in December. Insiders have revealed to MailOnline that it's Christine Lampard , 46, who fears she will be most affected given she presents for Lorraine when she is on holiday and also anchors Loose Women, meaning her yearly work is now in jeopardy. A TV source told MailOnline: 'All of the presenters are in a state of panic and up in arms following ITV's announcement. 'These shows make up a large part of their livelihoods, so they are just as stressed and angry as the production staff, who have been told over 300 jobs are at risk. 'Ruth, Kaye, Nadia and Denise, in particular, have been reaching out to the production team in a panic and to express how angry they are that ITV had made this decision. 'Lorraine is also furious that her show has been chopped to 30 minutes and moved to just 30 weeks of the year, the same as Loose Women. 'She thinks it's the ultimate insult after so many years at the channel, especially as Good Morning Britain is staying the same, with the current hours, airing every weekday of the year, as her show rates the same as they do. 'Loose Women and Lorraine dropping down in their schedule will badly affect Christine Lampard, she anchors for both shows so most of her yearly work is now at stake.' MailOnline understands the cast of Loose Women, which includes over 20 presenters such as Charlene White and Coleen Nolan, feel there will be no option other than for the broadcaster to let go of key talent, who have worked on the production for decades. It's also believed that younger panelists, like former Love Island contestant Olivia Attwood, 34, and influencer GK Barry, 25, could be favoured over veteran stars including Janet Street-Porter, 78, and Jane Moore, 63. A Loose Women insider added: 'At the moment there are about 20 presenters at the show, some are contracted, like Ruth, Kaye, Nadia, Denise, Janet, and Jane, and others are more ad hoc, like Myleene Klass and Sue Cleaver. 'It is hard enough right now to give every contributor a fair number of shows and to keep everyone happy and on screen as much as they would like. 'Now, the show will air just 30 weeks a year, so a lot of people are going to lose their jobs. There won't be enough shows to go around, so it means presenters who have been on the series for 25 years may be kicked off the panel.' Loose Women, which launched in 1999, currently airs on ITV during the week for an hour but from January 2026, the show will only broadcast 30 weeks of the year. In recent months, the show has attempted to reach a younger audience by recruiting Olivia, who currently fronts her own dating series Bad Boyfriends for the broadcaster, and in March, the series launched its first podcast across ITVX and YouTube. Top TV talent including Lorraine (pictured May 2025) are believed to be 'furious' and 'insulted' over the shakeup while the Loose Women are already fearing inevitable job losses Anchor Ruth, who previously co-hosted This Morning with ex-husband Eamonn Holmes until 2021, has been on the programme since the beginning, making her the longest serving panelist. The shakeup was announced by ITV bosses on Tuesday, which included the extension of Good Morning Britain to run from 6am to 9.30am. Good Morning Britain will be produced by a 'dedicated team within ITV News at ITN' while daytime shows Lorraine, This Morning and Loose Women will continue to be made by ITV Studios. Lorraine and Loose Women, who currently share the same studio, are filmed at Television Centre but as part of the changes will move to a central London location. On Wednesday, The Mirror reported that Lorraine could quit her show for good over 'fears' the quality of her long-running series could decline. ITV has claimed the changes will fund additional investment in dramas like Mr Bates vs The Post Office, which won three BAFTA TV Awards last week, and sporting events like next year's World Cup.
The Sun
22-05-2025
- Entertainment
- The Sun
Loose Women backstage chaos as fuming stars ‘doing show through gritted teeth' as they face 60% pay cut
LOOSE Women is in chaos backstage with some of the stars doing the show 'through gritted teeth' as they face a 60 per cent pay cut. A huge ITV shake-up was announced this week, with Loose Women set to air for only 30 weeks of the year from January. 3 3 As a result The Sun can reveal some of the Loose Women have been left seething due to being paid per episode. An insider told us: 'It's very tense backstage as the cast are all fuming. It's like they're putting on a brave face and doing the show through gritted teeth. 'Some people's pay could be cut by 60% as some get paid by the episode and they'll be slashed next year. 'For some it's their main source of income and it's worrying to everyone.' The Sun also told this week how the scheduling cut also means the full 26-strong pool of presenters and panellists will no longer be required. Up to a third of the cast, which includes Denise Welch, Christine Lampard, Coleen Nolan and Charlene White, could be left without a seat at the table in the shake-up. Lorraine Kelly 's eponymous show — on straight after Good Morning Britain — has been cut to just 30 minutes a day and will also only air for 30 weeks of the year. GMB, with hosts including Susanna Reid, Ed Balls and Kate Garraway, will take half an hour from Lorraine — running from 6am to 9.30am. More than 220 jobs will be lost as part of the shake-up — almost half of the 450 employed on the four flagship shows GMB, Lorraine, This Morning and Loose Women. The reshuffle comes amid a desperate cost-cutting drive at the broadcaster, and follows changes already made to its soaps. ITV Daytime Shake-Up: Major Changes to Lorraine and Loose Women Revealed But bosses insist the cuts will bolster other areas of the channel including new drama and sport. One ITV worker told The Sun: 'Everyone is completely gutted and in shock. 'We can't believe they would dismantle these brilliant shows. 'It's the death of daytime TV." ITV's daytime TV schedule changes in full Good Morning Britain will be extended by 30 minutes to run from 6am to 9.30am daily. Lorraine will run from 9.30am-10am, on a seasonal basis for 30 weeks of the year. During the weeks Lorraine is not on air, Good Morning Britain will run from 6am to 10am. This Morning will remain in its 10am-12.30pm slot on weekdays throughout the year. Loose Women will be in the 12.30-1.30pm slot, again on a seasonal basis for 30 weeks of the year. The changes will take effect from January 2026.
