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AIBU?

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Original poster

Fantastic new job opportunity but very uncomfortable with pay WWYD?

158 replies

Exemochick · 02/07/2021 06:58

This week I have interviewed for a fantastic new role that I am really excited about. It is a job that is relevant to my field but in a different area that requires my specific expertise so really a bit of a career change. I have met the team, everything seems great apart from the salary. I am expecting to take a bit of a paycut as I am new to this area but I will be paid 14k less per year than I was getting in my old role, the same amount I was making as a new graduate years ago. I have tried to negotiate the salary but with little leniency as apparently it wouldn't be fair to others who previously have started on the same amount. I am absolutely torn about what to do because on one hand I don't want to let this opportunity go but I'm very concerned about getting into debt and not being able to afford the lifestyle I am accustomed to every month. What would you do?

OP posts:
AquaticLicence · 02/07/2021 07:15

Can you clarify if the 14k is from your last permanent wage or your contracting wage?

14k is nothing from contract to permie. I'd be there in a heartbeat if I could just drop 14k to go permanent!

DeathStare · 02/07/2021 07:15

I am currently only working as a contractor and work has been quite scarce, I have not currently got a permanent job as we have recently moved to a new area

So it's not 14k less than you are currently earning - its 14k less than you used to earn before the situation changed, is that right? If so I think you need to accept that that has gone and weigh the job offer up against what you think the chances are that you will earn your previous salary through being a contractor in the near future. Remember contractors are paid more than employees because they need to cover for periods when they won't be earning anything.

HidingFromDD · 02/07/2021 07:15

Is the 14k less based on your contractor salary? If it is then it's not really comparable as contractor wouldn't include holiday and sick pay etc (assuming you contract under a ltd company). If it's against a permie role then what percentage is 14k?

The other consideration is that you say contractor roles are scarce, are you confident that you will find another one after this? if not, it's actually a question of job or no job in which case the 14k because less of an issue

Bryzoan · 02/07/2021 07:15

Contractor rates often are a lot higher though, partly to make up for no paid holidays, sickness, Any voids in work etc... What would the drop be if you were working in the same role as you are now as a permenant staff member?

CovidCorvid · 02/07/2021 07:15

I think take it.

I’ve had to do similar before. Moved from one field into a related field and it’s a set pay structure with progression points. It’s known that you have to take a drop in salary to start at the bottom of the scale. But after a year you have experience and get moved up a grade….and then progress along the points there.

So I think what they’re saying about once you have the experience you could get a pay rise could be true…..if it isn’t then you start looking for another job with the experience under your belt.

Have you looked at glass door for employee reviews?

AOwlAOwlAOwl · 02/07/2021 07:17

Yeah I think if you're contracting that's an angle to consider. If you work out the pension, holiday, sick pay benefits, is it still a significant drop?

shallIswim · 02/07/2021 07:17

Contractor now? Moving to salaried role? I'd take it then. You'll get benefits (like paid holidays) and NI paid and possibly others too. And a level of security. Can't compare.

lampinthestable · 02/07/2021 07:18

@drpet49

You can’t really compare contracting wage to a permanent, salaried role
Agree with this - you are not really taking a like for like cut Job security / health benefits / pension contributions - are these all non monetary advantages that you don't get now ?
Branleuse · 02/07/2021 07:18

Contractors earn more because theres no security. Id take the exciting sounding new job that has security

DeathStare · 02/07/2021 07:18

So basically in the higher cost area I was on the increased salary in a permanent role
Ah ok. You need to look at what salaries are like in your new area. Are salaries generally lower? Salaries are often higher in high-cost areas. People often leave London and are shocked that salaries are lower in some other places, but their costs are also lower.

LagunaBubbles · 02/07/2021 07:18

Well its not £14k less than you are getting if you haven't got a permanent job really is it.

HidingFromDD · 02/07/2021 07:19

xposted with everyone else. Given the update, I think you need to stop comparing the salary with your previous one and look at how it compares to similar roles in the area. If it's a lower cost area then expenses will be less but so will salaries usually. So it could be a perfectly well paid job in the area you've moved to.

TheLeadbetterLife · 02/07/2021 07:25

Come on OP, take the job, tighten your belt for six months and go from there. If they keep dangling carrots on the salary you can look elsewhere.

When you say “lifestyle you’ve become accustomed to” it sounds like you’re not taking about going into debt to pay basic bills, right?

fizzybootlace · 02/07/2021 07:26

I would take it, for the fact it's a permanent job you sound very keen on and to me thats worth a lot.

We don't know what % the 14k so hard to understand the cut in real terms but if it takes you under the higher tax threshold you may not be that much worse off after tax. I also think in a lot of cases we don't need as much money as we think we do if we actually look at our finances in detail eg utilities, phones etc

The market is very tough right now and the benefits that come with being an employee could also outweigh the drop. My salary isn't the best on the market but the 15% pension contribution is almost unheard of these days! Bottom line is you can always move on if you can't settle because of it.

TeachesOfPeaches · 02/07/2021 07:29

You get paid less as a perm employee than a contractor and you've moved to a lower cost area. Is the pay market rate?

Bibbidiboo · 02/07/2021 07:32

Money isn’t everything.
I took a $15000 pay cut and it was the best thing I ever did.
I save 3 hours a day commuting and am so much happier in this work place than the last

GoWalkabout · 02/07/2021 07:34

The pay sounds going rate in new area. It all depends if you weigh it up as worth it. Can you do contracting on the side.

Caterinasballerinas · 02/07/2021 07:35

I think you need to do some budget comparisons, does the lower pay and cheaper area leave you with more or less disposable income? Look at the obvious like housing cost, travel etc but also can you estimate what a regular meal out would cost in your new area vs old. Then you know you’ve made a sensible and measured decision not just been swayed by the emotional side of £14k feeling like a lot.

Aprilx · 02/07/2021 07:36

You have made this difficult to answer by changing your story part way through. Initially it was a drop in salary, now you are only contracting? Which is the truth, answers rely heavily upon this information.

quiteathome · 02/07/2021 07:36

I think take it. A permanent job is probably going to be worth it. I think companies are going to be looking to be making savings after the pandemic. So contractor positions may be more scarce. Realistically we don't know what happens next- but we don't really know what the long term economic effects of Covid combined with Brexit are.

A permanent position will probably be worth it.

TeachesOfPeaches · 02/07/2021 07:41

Due to the changes in IR35 contracting won't be as lucrative as it used to be

maddening · 02/07/2021 07:41

So is this £14k as a permanent compared to contracting salary? As permanent includes your benefits such as holidays,. Sick, pension etc?

What are perm salaries in your.current field at current level paid?

Jasmine11 · 02/07/2021 07:41

If you live in a lower cost area now, can you have a similar lifestyle on £14k less than you had in the higher cost area? A permanent job isn't to be sniffed at in the current economic climate, but if you can keep contracting at the higher rate indefinitely then why not do that?

IcedSpice · 02/07/2021 07:41

apparently it wouldn't be fair to others

Yeah, I wouldn't. You pay is for you, and shouldn't be judged against the others
You'll struggle getting decent pay rises too.

I was headhunted, paid more to cover loss of benefits from previous role, and then told at pay review time "you're paid more than everyone else, so lower bonus and payrise"

Roselilly36 · 02/07/2021 07:41

Permanent employment will give you a guaranteed income, but I can’t see it going up massively after the end of the probationary period, and certainly not by £14,5k! Lots to think about. It’s a substantial decrease in the level of income, only you can decide what is best for you and whether you can afford to live with the decrease.