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Not sure which would be best for my career
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True Story 😏
Subject Expert
I took a 100k pay cut and a demotion in role to join a Fortune 10. While my ulterior motive was prestige on my resume and career progression, I ended up working for the best ever company, best ever boss, and best ever teams. I learned so much professionally. They gave me 5 weeks PTO and that was more important to me than base salary. Best of all, my career goals were fulfilled and I got to where I am because of them.
What magic company is that?
I took a 20% paycut to go back to individual contributor work because management wasn’t working out for me. I didn’t enjoy the politics and baby sitting, I rather get the work done and call it a day. My life work balance is much better because of it. Didn’t have to bring things home and worry about other people.
Yes, just did it. Left toxic management for a lateral position with just about 5% less comp.
However this role will be less than 40 hours/week vs the previous of 60+ hours/week.
Peace of mind is glorious!
Peace has no price. I took a 40% cut to not work for my old crazy b*tch of a boss / management consulting firm any more after 25+ years at the same place. Completely worth it to work for normal people in a normal firm where I’m not treated like a second class citizen / punching bag simply because I’m support staff. Sure there were some great people there but the level of dysfunction was astonishing looking back on it. I’d do it again in a heartbeat. No regrets whatsoever.
Truly crazy bosses are the pain in the rear sapping out all motivation and energy
Yes, hard to put a price tag on happiness
Would depend on more variables than just the pay difference
How much wealth I’ve accumulated from investing prior years income would matter at least as much.
And whether I’ve already bought a home or am still renting, have kids etc
I would base it on travel/ remote/ flexibility/ also cost of living in the area
Yes I have done it and took atleast a 30 PC pay cut in the past
This is because I am an immigrant on a visa from India in the US
I had and still do not have a path to permanent residence. So took a huge pay cut and moved to Canada for a few years
First world passport and now back to the US
Ah that’s a good reason. Path to citizenship in the US is so difficult unfortunately
I was a manager & worked in a toxic finance env. Decided to take a pay cut and went back to an IC role at a better WLB company . My wife wasn’t happy at the beginning but ended up enjoy it more than me.
Money can’t buy happiness if you don’t have the time and mind to enjoy it.
Yes did so to have peace of mind, good work life balance and to get rid of toxic work culture and manager. I am very happy in making less money now. This makes me realize the importance of money is just to fulfil your need. If you run for more than what you need, then be ready to loose most valuable assest of your life which is " Happiness"
I took a 10% cut leaving a one weekend off a month job where I worked til 10p three days a week to a m-f 8-5 with more opportunity for advancement. No regrets and I’m excelling.
Definitely — have done it, would do again.
Reaching ‘well being’ (covering your essential costs) is one number, happiness (degree of comfort (savings, quality of essentials, etc) is another — in the US, I think the average to reach happiness is ~$105k, anything beyond that is certainly nice, but generally only results in incremental gains in satiation levels.
Sooo if you’re feeling burned out and can reduce your costs you may find greater peace in prioritizing living your life v high earnings.
Yes did it! Didn't realize how miserable I was until I cried from relief when I was laid off. Then took a whole year off to figure out what I really wanted. Then took a 20% cut when I started again at a place where I actually got what I wanted. But now 5 years later, I'm making more than ever, and still getting the WLB and perks I want.
Considering doing this now. I need more PTO and the hours are crazy in the job I internal transferred into. Trying to determine what I would be willing to trade in salary for that or do I stay while the job market recovers.
I did a few months ago - took a lateral base but lower TC (prob ~$50k less) and title demotion for a low burn remote role at a time that was very hectic personally - child with a medical condition requiring time consuming treatments for several months, relocating my family to a new state, etc. Am extremely thankful I had the option at the time but now that we’re all settled and my kid is recovered I’m ready to shift focus back to my career and sadly will need to move companies again to regain traction.
Yes. How much you’re willing to take depends on your expenses and budgeting but I absolutely value the experience over the pay.
I left an e-Commerce tech PM role at a corporation and switched to a role that suited my passions better. It started out as a 27% pay cut, but within 2 years in a much more successful work environment, I more than made up for that gap. And it opened doors to me that gave me even more success.
And it all started when I decided that the grinder they were putting me through at that e-Commerce position wasn't worth the $$.
My work-life balance is much better, I'm in a FAR better work culture, and I've grown both professionally and personally from the experience.
If you're considering it, do it. There's more to life than a paycheck. Best of luck to you!
Coach
I'm taking a 32k pay cut, starting at a new place next week. Much better WLB. Besides, the equivalent goes into pension 🙂 (I did receive other offers which gave a 30-50k increase in base.)
Aside from better work life balance, I believe that this new job allows me to expand my knowledge and experience with other tech and in a different domain.
Yes.
I've noticed that several workers who left for larger, more well-known companies return after a few months. We get unlimited PTO, which is hard to beat. Most senior and managing consultants would make $50k more at a Big 4 but choose to remain because of the amazing benefits, job autonomy, and positive work culture.
That is literally what I am hoping to do once my Green Card is approved... I would be willing to do a 20% cut if WLB is much better.
If you get a green card, you may be able to get better work life balance as well as a 20%+ increase.
For sure. You can’t put a price on your freedom and following your passion. Those who climb the ladder just for more eventually wonder what they did with life.
Considering an ~$85k pay cut as well for some career progression and better WLB. It’s just early in my career and this could dip my total comp back below 6 digits. I appreciate this post and comments for the insight!!
If you can cover your expenses and savings goals while living your standard of life, there's nothing to hold you back from finding a better workplace.