Dear Savvy,
With the economy the way it is, what's the average pay cut people are being forced to take after their position is eliminated and they need a job? And what is the best way to handle an employer asking what salary you are looking for in this kind of economy?
See my answer when you read more.
There aren't any statistics showing how much less workers are making now that unemployment has been on the upswing for some time, but it's clear that workers are making less in general. Some experts have even advised that an employee should take a voluntary pay cut if she's about to be given an official pink slip. The logic behind that idea is that the job market is so tough you'll have to take a pay cut anyway, and once things turn around you'll be a prime candidate for a raise.
Young workers are being hit by the downturn because more experienced out-of-work candidates are taking the jobs normally filled by young job hunters. Because most companies are running with leaner workforces, meaning less jobs are available, and the candidate pool is overflowing, taking a pay cut from your old paycheck might be necessary to be competitive.
Your answer to employers asking for salary requirements should be similar to what you would have said in a stronger economy. As I've mentioned before, there are a couple of ways to approach the salary question. You could respond by saying something along the lines of, "my salary is negotiable considering other benefits and what your firm thinks is a reasonable start," or mention a salary range that leaves plenty of room for negotiation. Know what you are worth going in to the conversation, but keep in mind that a little flexibility will get you a long way in this economy.
I haven't had a raise in two years but the company I work for is growing, very small, and in addition to moving up the latter to a directorial position, I am rewarded in other ways - bonuses from clients, and this year my employer surprised me with about two grand to build myself a new computer as I wanted it. She feels badly but I really don't, and I have told her that my commitment to the job isn't contingent upon a raise, and as we grow the business, I feel confident that when we can have them, we will.
I have worked for her for 3 years now and enjoy a level of job security and flexibility that no raise could equal, as you say, its about "flexibility" and we both give that to each other - its immeasurably important, especially in small businesses where getting through the rough patches really means a team effort.
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