Taking Pay Cuts: Forget the "I'm Insulted" Drama

 When looking for a job or even when in a job, now normal is this: reduction in compensation. 

What's driving that could be as simple as employers having the upper hand and knowing they can get away with lowballing pay. And/or, the business contends more funds have to be invested in growth strategies such as implementing AI. Another possibility is that financial performance is dismal.

Being offered compensation below what you expected isn't new, though. One of my first coaching clients had been a laid-off speechwriter who decried that a freelance assignment was for $1,000. Normally that was a $2,500 contract. Back then the I'm Insulted theatrics were standard. But the pragmatic guidance I gave was: Take it. It's a fresh sample for your portfolio. Your skills don't atrophy. It is income. Hold the drama.

Essentially, I give the same advice now. My signature mantra kicks in: Work gets you work. That job or contract assignment serves as a platform to hustle for something better or a parking place to be when considering a shift in how you earn a living. Meanwhile the income prevents desperation. Therefore, you operate from a position of strength. 

There are exceptions. What seems unthinkable probably is. No, for a 40% reduction in compensation you're likely not going to relocate across the country, on your own dime. The responsibilities are too much for even three employees. There's absolutely no fit with the organization. The boss has been outed over and over again for being impossible to work for.

In a sense, in the legal sector the no-match to the Milbank June 2026 salary boost by highly profitable firms such as Paul, Weiss and Simpson - at least not yet - represents a bit of a haircut for associates. Inflation continues but there hasn't been an increase in basic compensation for a while. Yes, those law firms can get away with it. They provide plum jobs.

In coaching, I am still having to explain to talent how much the labor market has mutated. The adjustment begins with the mindset: Things are different now, so what's my strategy.

Careers. Forget all that. It’s about earning a good living, no matter what.

Complimentary consultation with Jane Genova, StreetSmart Coaching (janegenova374@gmail.com) 


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