Salary Cuts due to Covid

Even so, I still wouldn’t be afraid to negotiate salary, ESPECIALLY if the salary is dramatically lower than your market value. You won’t know the outcome unless you try.

Yes budgets are smaller…but you better believe many companies are “banking” on people being afraid to speak up. Did you know statistically, white women and ethnic minorities are more likely to be afraid to speak up during the initial salary offering? Would I ask for $20K more right now?? Perhaps not (unless the job was Director or VP level)…but I would absolutely ask for $7K or 10K more. And remember, it’s not what you say, it’s how you say it. Make sure your resume has quantitative facts about your experience to back up what you are asking for and further explain those elements during your interview. Even if you end up getting $5K more upfront and then reviewing your salary at the 1 year or 18 month mark, that’s still progress.

I believe what you say- and believe me, I always push to negotiate at the best just even for 5K.
I even asked taking less benefit like opting insurances to haggle the deal.
But sometimes it just won’t work- if the bar already had set up at max… or I guess I happened to deal with only cheap companies.
that I have to take it in other forms like extra PTO as compensation.
I will definitely push the limit, but it seems the way for cutting off salaries are “new normal” we have to mentally prepared…on top of working 2-3times more due to lacking off staffs/budgets.

@DesignerN

Don’t forget to negotiate other “non monetary things” with your offer such as:

TITLE: Your title should definitely reflect your workload, and even your experience within the industry. Be sure to ask about the actual structure of your department during the interview process…and look it up on LinkedIn. If someone has 8 to 10 years experience as a designer, and the company they are interviewing with has a director or VP of design and several assistant and associate designers…don’t hesitate to ask for the “Designer” position to be changed to “Design Manager.” It not only makes sense, but it also looks good when it’s time to look for another job. Same goes if you have several years experience in production, and you find out you will be the only person handling production for an entire company or entire division…your title should easily be “Production Manager.” And if that happens and fast forward 3 to 4 years later and you are still either the only one doing the job or you have people reporting to you…ask for your title to change to “Director of Production,” during your performance review.

FLEXIBLE SCHEDULING: This is NOT the same as additional days off. Ask to have the flexibility of coming in the office later in the morning during the time you are continuously working late hours during peak time…a rested employee is more productive. Or depending upon your job, negotiate working from home, when needed be.

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Anyone who makes over $72K received a 10% pay cut, they laid off a third of the company (all low level except one giant-fat-cat). We are expecting more job cuts middle of this month when paycheck protection loan rules run out and I just heard most likely more pay cuts.
Business has been slashed in half or more bc of COVID-19 so none of this is really surprising but it is extremely scary and very hard to swallow.

Some companies apply pay cut to new hires if one is in place. FYI.

I’m wondering the same thing. The rates are so low that I am wondering if I should just accept an offer even if its a 20-30% cut from what I used to make. @grandpoobah

@mkswfb

From what I’ve been told years ago, that type of practice wasn’t uncommon (even before the pandemic)…especially if a particular company has high turnover rate, or if a newly vacant role was previously occupied by someone who was in the position for several years…particularly for a mid to senior role.

If the person who left was making early $80Ks for example…it wouldn’t be uncommon for the company to make the salary range for the new hire in the early to mid $70Ks, DOE. Trust…even when the economy is healthy, many companies still find ways to cut corners. Also, some companies might say a salary is a particular range in anticipation an assertive prospective employee will ask for more money. So if the company increased the salary by $5K more after the initial offering, the new employee will feel some form of accomplishment (even if that wasn’t the total increase amount requested)…yet even with that increase, the company is still below budget in comparison to the previous employee.

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Yes your point is true but mine is different. You’re hired at 80k but coming in at 20% pay cut of your peers until that cost reduction ends. Not due to performance or growth.

@mkswfb

But because this is ESPECIALLY an employer’s market and most likely will be for the next 18 to 24 months, it’s either take what you can to keep your experience active and be a good negotiator in effort to get as close to your market value as possible. Unless you are blessed to actually get a job offer making your true market value or if you are somehow in those inner circles within the industry…what other choice do you have? When things get better and if the job you get is making below your market value that bad…you can always look for a better opportunity at that time.

Yes, it totally sucks…but there are times in our life where we have to have that “bend but don’t break” mentality. When the market dropped around 2008, I had PLENTY of friends at all levels who either had to suck it up and take lower salaries for up to a 2 or 3 year period…some temporarily or even permanently left the industry…some pivoted and took their skills to another industry, getting a job making the same if not more money! One of my friends had a $130K director job…was unemployed for 9 months, then took a consulting role which lasted close to a year…and I think now he’s doing something completely different making around $95K. Does he miss that money and the status of his career? Of course…but you can’t force a company to hire you or pay you your true market value…all you can do is put your best self forward while showcasing your skills during the negotiating process…and keep looking if you have to.

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A former coworker told me that they took 35% pay cuts and they were not told about until 2 days before payday. They were that it would be only until they received their loan. Lasted over a month.

Hate to revive an old thread, but how is everyone’s salary now that we’re in October?

My company brought back our salaries to our original rate, hooray! It was about a 6 month cut. Unfortunately the 401k match is gone forever and who knows if there will be bonuses this year. I did notice one maybe two people in our design department were promoted with raises during this time as well as some new people in the building/on emails. Hmm.

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Anyone else experiencing an insane influx of work?

My salary was cut 20% indefinitely after coming back from a 3 month furlough, but my work load has tripled.

I already try to balance workloads between private label design for a fast fashion line, a full contemporary collection (my actual job), and a buy-now wear-now division of the contemporary label by myself. A workload that has been overwhelming and impossible even with full time hours.

Now my boss has blindsided me with the added job of marketing/social media strategy and execution for the collection. I was already underpaid before the cut and now am expected to miraculously juggle all of these tasks and any other project that is thrown my way for the same salary I was making as an assistant 5 years ago.

When a coworker spoke up to say the timelines given were not realistic, she was met with an aggressive, demeaning and frankly, verbally abusive email from the bosses about her “lack of team play” because she wasn’t willing to work extra hours.

I am grateful to have a job. But how do you even navigate this with a small company prone to gaslighting you?

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I understand what you’re saying to some degree but perpetuating this bend don’t break attitude is what allows companies to continue this practice of paying well below market.

When do we stop compromising especially when cost of living continuously increases, our work load increases but our pay barely balances our expenses?

We make generous allowances for employers, but where is the return?
Just food for thought.

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I am aware my former company went from a 20% pay cut to now 10% starting Oct 1st.
My advice to anyone on this thread that is still working / employed to be thankful for that and keep your head down and keep working until the job market improves. Then you can argue, fight and possibly leave.
Right now the employers run the show and can basically pile on anything they want at this point.
So many of us are out of work and the NY Metro job market is still very quiet even though now we are in Q4.
Any job posting out there the employers have so many options to choose from for their 100% job match. The ATS would even get you to a live person unless your 100% match in their eyes.
It’s very scary out there.
I wish everyone out of work reading this thread the strength and courage to carry on and keep applying.

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yes, very much so…people laid off and no one to replace them. The work just gets piled on to the people remaining. Similar to your situation, voicing concern over how the workload is basically insupportable and the deadlines unrealistic, gets met with comments about not being a team player. I wanted to quit my job before the pandemic hit but seeing how grim the prospects of freelance are looking, I don’t think I can quit. Grateful to have a job but feeling very trapped at the same time.

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Wanted to quickly chime in here as I knew someone who was in the same situation (team laid off and doing their roles as well), who spoke up about the increased workload, asked for support, and then a week later was added to the “laid off” list. It’s very unfair, but employers do have the upper hand now.

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My job laid off a whole department and some department heads. That same day our pay was restored to full from our 25 percent cut. Lost of work as the market tastes shifts. It’s very interesting times. I’d say unless the job is downright crazy crazy try to stick it out. We see the EU on their 2nd wave and it’s only a matter of time before that happens here. So ya know everything that entails. You have a better chance keep your job at a place that didn’t lay you off during the 1st wave than do going somewhere that only had a job opening for you because they laid someone off during the 1st wave. Try to think strategically.

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My company is currently hiring people at full salary while the rest of the company that was brought back from furlough with a 20% salary cut with no mentions of when our salary will be restored. Is there anything we can say to HR?

How do you know the new hiring is full rate? We’re hiring too but in much lower rate…

I’m still at a 40% pay cut. It’s been 7 months now. I have spoken up about it and I’ve been getting the run around. My work never stopped or slowed down. My team went from 9 ppl to 4 and we developed 3 seasons remotely. We are now back in the office twice a week and now they are asking to add in an additional day in office with no mention of compensation. They are taking full advantage of the job market situation.
I’m just trying to hang in until something gives!

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