Ranging from automotive executives to financial workers, all are being asked to slim-down their salaries. Whereas the 238,000 employees of California's executive branch had to accept twice-monthly mandatory unpaid leave.
Learn how pay cuts could affect you.
1. Pay Cuts
Companies are very careful about pay-cuts, and also negotiating a pay cut is dangerous now. If at all your superior comes to you for initiating pay-cuts, you can’t do much about it.
2. Benefits
Your employer may also very likely stop contributing to your 401k. Some of the soft benefits’ like less tuition reimbursement may suffer. Whereas you’re monthly throw-in for medical benefits may increase as well. Also, travel can also be a significant expense for many companies, depending on the type of business.
3. Bonuses and Raises
Bonuses may suffer badly given the suffering economy by this year-end. Also, majority of the executive positions carry a base salary with a bonus attached to performance. Whereas employees’ tend to bank on that money, but its’ important to remember that a bonus is optional and likely a preferred cut. Also, if companies don't pay bonuses as committed, you may want to start your job-hunt again.
4. Reduced Hours and Mandatory Furloughs
A lot of government employees are compelled to work less hours or avail unpaid vacations. Remember, time-off might benefit you as it can give you an opportunity to chase other work options.
What You Can Do
Proactively look for options to assist your employer cut-back devoid of cutting salary or jobs. You can consider working for a smaller company for seeking more transparency. Whereas using mandatory time-off for hunting another job is also recommended.
