I just left my company last week without a job in the pipeline and I received a job offer from a company (same industry) but it comes at 17% pay cut. Should I take it up? - Seedly

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Asked by Anonymous

Asked on 29 Sep 2018

I just left my company last week without a job in the pipeline and I received a job offer from a company (same industry) but it comes at 17% pay cut. Should I take it up?

They are a personal finance portal in Singapore where users can compare different personal finance products like credit cards, insurance, and loans. Earlier this year they received a $10m Series B funding. They have great culture, new skills that would make me very marketable, they have a stringent hiring process (4 rounds) so I think the people they hire are of certain standard and that I would be working with good, talented people. I am single, no debts and no heavy financial commitments.

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Personally I will not take a new job for a pay cut

assuming you perform average and the average pay rise is 2-4% it is a long way to crawl back to the original salary.

Unless you are a high flyer and can execute. in that sense you might get a pay rise and promotion that will quickly put you back in line or even better than before.

This is a question best answered based on your abilities to execute and network your way to the top.

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Serene Toh
Serene Toh

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Level 5. Genius
Answered on 05 Dec 2018

Sounds like the pay cut is the only thing stopping you.

17% pay cut sound like a lot, to be honest, I wouldn't take it if i'm still holding on to the previous job. Maybe you need to compare the pay to standard market rate instead, hopefully, it makes you feel more comfortable about the pay given.

Since you already left the old company, and feel that this new one works for you. Then why not, especially if taking the job would make you more marketable if you decide to leave later.

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Look beyond the non tangible benefits. No doubt there's a lower pay, but do you think joining this company will be a springboard to something greater down the road? If so, sign on the dotted line! Do ask about other benefits as well, like equity.

All the best!

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Ck Chai
Ck Chai

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Level 4. Prodigy
Updated on 01 Oct 2018

Based on the information you gave, I will say, Why not? Go for it since you have already evaluated the pros and cons of this job and seems like, this is more to gain despite of the pay cut. I previously also accepted a job at a monthly pay cut of 10% but eventually I had an overall annual increment of 10% because of the company’s unique pay scheme structure.

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Go for it!

Because :

  • you're single, no debts and no heavy financial commitment
  • New job would add new skills that would make you very marketable,
  • You're still young and single, It is easy and best to chiong now that later when you want to settle down with too much commitment.
  • Even if you're in you 40's, Chances wait for nobody , take it grab it and run with it so you won't regret when you're old.
  • Though it comes with 17% pay cut. Assuming you earn 4k, that is about $680.
  • For $680 in exchange for new future proof skills and great portfolio in your resume , I say it's worth it.
  • It is either now or never. Many employees jump into startup With a paycut but for better culture , vision and future proof experience.
  • if you don't join now , future might or might not have similar offers coming. If you only join in the future, this would have means you have wasted some years in SME or MNC or ministry for another 2 to 4 years and increase more in income. Till then it is a harder choice to make due to more deeply rooted into mature company. And again you're face with the same choice junction again. So what are you gonna choose then ? Can you give up by then with a even bigger gap ?

So go for it ! Worst case scenario if it doesn't work out , in about 1 to 2 years time you can always go back to mature company with a very up to date skills and experience with a modern outlook that is future proof. Who knows with that you might be also joining another startup or co-founding!

Cheers and Hi Five!

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Nicholas Chan
Nicholas Chan

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Level 5. Genius
Answered on 30 Sep 2018

Its been only a week. Give yourself time to look around longer

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Leong Wen Fong
Leong Wen Fong

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Level 6. Master
Answered on 29 Sep 2018

Well taking this job is like doing an investment, just that not everything is calculated by money terms. If you feel that in the long term you will benefit much more than just looking at the short-term, then why not!

Without knowing exact figures, and the exact situation you're in, it's harder to give precise advice. However, from what you described the job as, you seem to want it bad enough to consider the pay cut! Anyway, you can always take it up until you find a higher paying one that have the same great culture as well, so why not go and grow yourself, and use this as an opportunity to have more experience?

All the best!

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Gabriel Lee
Gabriel Lee
Top Contributor

Top Contributor (Dec)

Level 6. Master
Answered on 29 Sep 2018

Seems like a great place to be in where you'll be exposed and be able to pick up & learn many new things/skills! Given your situation, I would take up the opportunity even though there's a pay cut of 17%.

As for my 6 months internship during Polytechnic, I chose to do it overseas at a start-up in Vietnam even though the monthly pay was really low ($150) as I was paid the local rate. If I were to stay in Singapore like my other peers, I would be able to draw around $1000 per month. But I had no regrets at all and really enjoyed myself!

So if you can make ends meet despite the pay cut, able to pay bills and save up a little, go for it :)

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Yong Kah Hwee
Yong Kah Hwee
Top Contributor

Top Contributor (Feb)

Level 6. Master
Answered on 29 Sep 2018

it sounds like the only cons of taking it up is the 17% pay cut. If you can learn more in this new company, and if it allows you to grow, then why not? take the 17% as investing in your personal growth and future :)

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