Job Cut vs Pay Cut

Discussion in 'Self Improvement and Being Successful' started by Nazreen, Nov 5, 2008.

  1. Nazreen

    Nazreen
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    In the west, it seems that a lot of companies are already cutting jobs because of the current financial crisis and because of this, a lot of people are now unemployed. Is this because most people in the west, especially those at the top management, don't want a pay cut? Here in the east, it's a bit different. People are willing to take pay cuts as long as they retain their jobs. Just take a look at a Japanese minister who is willing to take voluntary pay cut to atone for some mistakes.

    So if given the choice, which would you prefer - Job Cut or Pay Cut?
     
  2. Fergal

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    This question is very relevant to the times we live in. Some businesses and other organisations in Ireland have announced that they are imposing pay cuts on their staff. Many of those staff accept the pay cuts because times are bad and they are not confident that they can get another job at this time. Irish government ministers have also taken a pay cut, in recognition of the difficult times we live in.

    As an aside, Ireland had a similar HIV blood contamination scandal a few years ago and sadly it also resulted in a number of hemophiliacs becoming infected.
     
  3. pendelton

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    Most Americans are too greedy, plus, if they lose their jobs, more often than not they get an unemployment check to live on for a while.
     
  4. Nazreen

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    Maybe it's the greed again and possibly, it's also selfishness. No one wants to have a pay cut and people probably have false hopes that job cuts will never happen in their company. The chances of that happening, however remote, are increasing everyday because the financial crisis is worsening.

    I'm not sure how much people get in unemployment claims in the US but would this really be enough to support people? How much do people normally get Pendelton?
     
  5. Fergal

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    The difficulty with pay cuts is that many people have got themselves into a position where they need all of their salary to sustain their way of life. For example, many have big mortgages, that they could not afford to pay if they took a pay cut.

    House prices and house sales have also fallen drastically. Hence many people have negative equity and are not able to deal with the pay cut by selling their house and buying a cheaper one.

    I was talking to my Mum about this yesterday. She says that she never heard of people getting pay cuts in the past. During bad times in the past some people did lose their jobs and others didn't get an expected pay rise but being asked to take a pay cut is a new phenomenon in Ireland.
     
  6. Kay

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    Pay cuts aren't something I'd heard of much either until this time round. To me it's a no-brainer. I'd much rather keep my job and take a pay cut than have to draw unemployment benefit and maybe never get another one for years.

    Remember, this is a whole new ball game. It could well be years before the economy recovers and I don't think saying it could be years before you get another job is an exaggeration. Companies announce a hiring freeze in tough times. They try to make do with the staff they have or less. Less jobs in the marketplace means less chance of walking out of one and into another.

    True, most people have every penny accounted for in some way but when it's widespread like this, the way companies look at debt and collect it needs rethought too. Like the Irish government ministers doing their bit there (I tip my hat to them), each one will need to reflect on how best to handle the crisis.

    Whether that involves pursuing old debts now while there's still time to get them paid before people are completely broke or being more lenient in the payment terms so they get something rather than nothing I don't know. But it is a choice that needs to be made. I imagine most will combine the two.

    At least if you're still employed somewhere you can use the time to your advantage. Retrain, rethink, brush up your skills, take the courses your company offers online, make sure you have contact details for anyone you'd like to network with if it all goes belly up....anything like that is worth doing.

    I've been made redundant. It's never easy and unemployment benefit is pennies. I was lucky enough to have mortgage insurance and to be offered another job within a few weeks. However I don't think anyone, no matter how skilled they are, will find it so easy this time. Given the choice I definitely would have opted for a pay cut then. This time around? You'd need to be prying my fingernails off the doorframe but each to their own of course.
     
    #6 Kay, Nov 7, 2008
    Last edited: Nov 7, 2008
  7. Fergal

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    That is a good point about the difficulty of finding a job at the moment. The Irish government has put a freeze on recruitment for all government and public sector jobs. This in itself is a big loss of potential job opportunities.

    It is even worse in the private sectors, with many companies laying off staff or reducing them to part time hours. Even the very few companies that are busy, do not have the confidence in the economy to hire new staff at this time. Hopefully it will improve in the not too distant future.
     
  8. scifi

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    It's better to have something than nothing especially in the times such as of b/w these all crisis & economic slump.
    So if given option unless untill u r confident abt your demand in the market it's better to HAVE a Pay Cut Than Job Cut.
     
  9. Fergal

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    Sorry Scifi, what does "b/w" mean?
     
  10. scifi

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    oh!sorry Fergal
    I often used acronym instead of writing full word..
    b/w means BETWEEN.
     
  11. Kay

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    Let's hope so but I can't see the way forward right now. This whole economy is getting me down. I'll give you an example of how small things reflect the bigger struggle each and every business is facing and what I was meaning about how they need to rethink their strategy.

    Yesterday our real estate agent arrived unannounced with pictures of a house she thought we might be interested in buying, given previous conversations we'd had when we were looking to move to the area originally almost a year ago. I hadn't spoken to her since.

    Whoever heard of a real estate agent making house calls on the off chance you'd want to buy? Their business is really slow she admitted but those actions told me that anyway. Good for her for being proactive though.
     
  12. Fergal

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    Good for her indeed Kay, she must be a hard worker.

    Try not to let it get you down. Staying positive is more important now than ever.
     
  13. Kay

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    She is, I was really impressed with how efficient she was when we did business before.

    You're right of course, I shouldn't let it and usually no one's more upbeat than me about things. I always try to look for the silver lining in the cloud and see the good in people where others don't. It's just sad to see so many lives being disrupted by it all so fast!

    But the good thing about our group here at BAF is that we're all willing to help and support each other to be the best we can be and make the most of ourselves. Can't say better than that! :)
     
  14. Nazreen

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    I agree with this sentiment too. It's nice to be in a community, even though it's just a virtual community, that help and support each other.

    By the way, fears of unemployment have suddenly hit home especially for my hubby when he heard news of friends and colleagues working for Citibank's IT departments here in Singapore who might find themselves out of a job in the next few months. For my hubby, he assured me that the possibility of him getting the axe is very small but I guess we still cannot ignore that the possibility is still there, no matter how small it is.
     
  15. Kay

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    Ah, Nazreen, I'm sorry to hear that. I wish you all the best and hope it doesn't come to that. You're wise to at least prepare for the possibility however small. Is he within the IT dept there too or another section if you don't mind me asking?

    The reason I ask is so I can keep it in mind when I'm on my Internet travels in case I hear of anything within his area of expertise - you never know when such things reach your ears. Best of luck to you both.
     
  16. Nazreen

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    Even my hubby tells me not to worry so I don't worry at all. Thanks for the concern Kay. By the way, my hubby is also working in IT but not in Citibank. :)

    Here's a little bit of good news for Singaporeans.

    What happens when you got retrenched while being hospitalized? For Singaporeans, we have received some good news in answer to this question during this uncertain times. When a Singaporean who is hospitalized is retrenched, he will enjoy full subsidy of his medical bills. This government scheme will take effect in January next year for public hospitals.

    I'm really glad that our government has came up with this scheme. At least this will give workers some peace of mind and not worry too much about being hospitalized. I just wish that they include pregnant ladies on maternity leave to be also given subsidies when they get retrenched.
     
  17. Kay

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    You're welcome, Nazreen. :)

    Could you explain a bit more please what retrenched means in the context you're using it because I'm not grasping this fully. Thanks!
     
  18. Nazreen

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    I don't know if you use the same term as us but we usually use the word "retrenched" when your laid off or got fired from your job. Sorry Kay, I'm so used to hearing and using the word "retrenched" that other people from different parts of the world might actually misunderstand it.

    Or maybe, we Singaporeans might be using it incorrectly. We are not native English speakers after all.
     
  19. johndale

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    I hope this year will be a different one in people's situation. I've heard that we are starting to recover from these crisis.
     
  20. amndacatr

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    The reviving period is on but it would take sometime to bring the condition back to normalcy as the effect caused by it is a little deep one. The important thing would be providing the jobs to those who were unemployed, the companies though are back to their usual ways but would take sometime to start functioning as it used to sometime back. Let's hope for the best and just keep our fingers crossed.
     
    #20 amndacatr, May 7, 2010
    Last edited: May 7, 2010

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