Brentwood Search

Reduced Salary - Will This Hurt You Long Term

In this difficult economic climate, and particularly in Los Angeles, where unemployment is running far above the national average, job hunting can prove challenging.   We often encounter candidates who fear that taking a reduction in salary will create multiple problems down the line for their career progression.   We often will hear candidates say, “I’ve worked so hard to get to this point.  I’m going to hold out for a job that is at least a lateral from a compensation standpoint.”   Or “I really don’t want to take a reduction in title.”   We believe that expectations often do not reflect the reality in the marketplace.   We are currently beseiged with people in transition, and recruiters across the city are finding search assignments few and far between.   It is not unusualto see hundreds of applicants for a single position.    Supply and demand comes into play.   With so many strong candidates on the street, someone will be willing to reduce salary expectations for a shot at a permanent position with a good company.

We have frequently advised candidates in this situation to look at the long term opportunity.   If the company is a solid, growing company, it may be smart to take a strategic step backward to better position yourself for the long term.   Once in the door, a strong candidate can prove their worth and once again be on the path to career progression.

We will advise candidates to take a look at a strong opportunity.   When asked about compensation, it is often wise to say “I am flexible and am willing to entertain a fair offer that will allow me to prove myself.”   Very often HR executives will in the end fight to try to meet a candidate’s base salary, even though the original salary target was lower.   Much of this has to do with setting the right tone and to increase the possiblity of candidate retention.   When the recession is over, no one wants to lose top talent because they have been penny wise and dollar foolish.

The recession will turn, and companies will begin hiring again.  But until that time, candidates must accept the reality.   Rent or mortgages need to be paid.   Bonuses will be small, if they are paid at all this year.   Being out of work for 3 months or more will make it harder to recover your loss even if you eventually get a position at your desired salary.    Overall you could well be doing better in the long run even with a salary reduction, because you will have money coming in the door in the short term.

Employers in this economy are under great pressure to hold down costs.  It does not mean that they will regard someone who is flexible less favorably.

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