Is it ever ok to consider a reduction in pay? We’ve got answers.

Taking a pay cut is never ideal.  However, through our years of interviewing a broad range of Beauty industry leaders, both up-and-coming and seasoned, and hiring for a broad range of companies, there are times when it makes more sense to take a little less in salary for a something that’s more important than money. Use the guide below to decide whether or not taking a pay cut might be the right move for you…

You’re seeking job fulfillment.

The old saying “money doesn’t buy happiness” always rings true.  Truth is, if you’re being considered for a role at a company that is perhaps more meaningful to you but with a lower salary range, a pay cut is something we tell our candidates to seriously consider. At the end of the day, if feeling absolutely fulfilled at your job overrules the compensation, then taking a little less is worth it. The fulfillment you feel will be reflected in your work, and this often leads to longer tenure at a company and likely more long-term upside potential for your career.

You’re looking for a better work-life balance.

Many companies are happy to consider reducing work hours for those who may be juggling multiple time pressures. Over the years, we’ve seen a number of Beauty companies configure a job-share where two people split one position and cover 20 hours each. This allows for increased family time or the opportunity to take on a broader range of work projects or simply work less hours each week. We’ve also seen Beauty companies offer four-day work schedules, which saves the company money and offers more flexibility and time for their employees. Even after COVID, you could suggest a permanent work-from-home situation or flex-hours in exchange for reduced salary, and with that will come a better work-life balance.

You’re switching careers or specialties.

This is probably the biggest reason why a candidate would consider taking a pay cut. When we’ve worked with candidates either entering or leaving the Beauty industry, we often advise that they will need to consider taking a pay cut and likely consider a slightly lower level position. Of course there are exceptions to this, especially when a Beauty background is considered a benefit to the hiring company. We’ve also seen candidates who want to stay in Beauty but want to switch disciplines, ie move from Product Development to Marketing or Supply Chain to Project Management. This can often be achieved within a company without taking a pay cut, but if you want to leave your current company and move into a new discipline, this often requires considering a slighter lower level position and thus a lower salary range.

You’re moving cities.

If you live in any of the three big Beauty markets: New York, Los Angeles, or San Francisco, you are also very familiar with the high cost of living associated with these cities. Salaries are level set against cost of living and also against competition for talent. So when candidates are actively looking to move to a smaller market, we advise that they should expect a salary that’s more in line with the local cost of living. We also advise that when candidates are considering relocation from either New York or San Francisco, often like-for-like positions in Los Angeles pay about 20% less. We call it The Sunshine Tax. We always encourage candidates to research cost of living and expected salary ranges, so they can more accurately advocate for their salary.

You want to start a side hustle.

Similar to those looking for a better work-life balance, if you’re someone who wants to start their own venture or a side business while simultaneously working, taking a pay cut is a great option to make everything work. A reduction in pay will also bring reduced hours and, in turn, more time for your business venture.