Do I Take a Job for Less Money?

I'm 34 years old and I have been working in a very unique field for the last eight years. I have two degrees and just started a masters. I'm currently on $115k + 10% super. I really don't like my job anymore and I'm sick of working in Canberra.

I have been applying for jobs since early January and I just got offered a position at one of the big 4 in Sydney. In the application, it asked for my salary range which I put down at 115k. When they offered me the job today they said it would be 104k + 10k signing bonus. I thought this was ex super which it is not. Excluding the bonus, it's nearly a 20k pay cut which is a really hard pill to swallow considering I have 8 years of experience. I said this and they said sorry that is the highest in that band but we are confident you would progress quickly.but it could take me two years to get back up there.

I'm really confused what to do. The job would be good growth and out of canberra. But I have to pay to move, rent is more expensive, cost of living etc.

I feel like I'm worth more but I have also not proven myself in another role.

Update: Thank you everyone for your input. I decided to turn the position down. While it is a bit of a career change, moving to another city and a 20k cut to my salary, was too much of a pill to swallow. They might counter me but I doubt it.

Comments

  • +19

    … it's nearly a 20k pay cut…

    Seems like there's less people with the skills required for that role/industry in Canberra so employers pay a premium to attract people. In Sydney, there's probably a whole lot more people with those skills, therefore, employer's don't have to pay that much.

    What's the role (if you don't mind sharing)?

    • +15

      Yeah but if it's really a "unique field" then that salary is (sorry OP) not actually that fantastic. Even people in a general field like Software Engineering command more than that.

      Even if you're going from a specific field to a generic one, at the big 4, you should be commanding way more than that. and to say that it'll take you 2 years to climb back up at 10k a year is laughable.

      • +6

        Jobs and salaries are like everything else and based on 'supply and demand'.

        If it's a unique field, then there's less people who can perform that role so companies might be fight to get the few people that can do it. So they have to offer more money.

        If it's a generic role, then there'll be plenty of people who can be hired for that role. So if one person doesn't want that salary, then the next person will - so for this role, companies don't have to pay as much.

        I went through the same thing about five years ago. After 10 years in a niche IT field (programming in a proprietary language), I could see the role would eventually become redundant, so I took a paycut to move into a more generic role to cross-skill and make sure my skills were transferrable in future. For a few years, my pay was lower, but I saw it as an investment and it's paid off nicely.

        • +3

          Could also be that the field is so niche there is not that much demands for it.

          • @buckethat: This… and consultancies hinge on that risk when offering a salary.
            What if there are no projects, or low paying projects only requiring such skills

    • +4

      Without giving too much away, it's kinda of a science innovation role.

      • +5

        Wow, sounds like an interesting role! I didn't realise that the Big 4 (I've automatically assumed that the 'Big 4' means the accounting firms like PwC, Deloitte, etc) did science related stuff!

        • +1

          big 4 is usually in reference to the big 4 banks

          • +50

            @weezlebub: Big 4 is more commonly used to refer to the four accounting firms (PwC, Deloite, KPMG and EY)

            • +92

              @buckethat: Or s/he's got a job offer from Big4 holiday resorts.

              • +7

                @RolandWaites: I thought s/he got a job working for the one of Federer, Nadal, Djokovic, or Murray…

          • +2

            @weezlebub: in Australia only

      • +1

        Is it to do with R&D tax incentives? You're just going be writing up reports for 1 type of company for a very long time e.g. writing reports only for IT companies if they make you specialise in this

        • Yeah, kind of. Same area.

          • +9

            @leftspeaker2000: OP I was in a similar position to you several months back. After working for pennies for the longest period ever, I've only recently been paid fairly (75k) and the new position is much easier and the people are great.

            Well a new position opened up somewhere else, which included higher managerial responsibilities, but even higher pay. They listed the Ad as $80k-$110k. Their HR tried very hard to conceal the real figure, and kept wanting me to tell her how much I make. I played the corporate game, and didn't reveal it, told her the responsibilities were different so comparison is inappropriate. She also questioned why I would leave my current work (govt-owned) as it is a high-desired one, and I explained it's about professional growth. Eventually the HR lady stuffed up, and told me they would be offering a good ($90k) salary. And she complimented me, as the sort of expertise they are looking for. Overall the pay seemed good for me (even though I know in the grand scheme of things, it was anything but).

            Well, I was the top candidate in all the applicants and interview, but negotiations fell through. They realised they stuffed up by me knowing the salary, and they wanted something cheaper which they couldn't get from me. Yes they were false advertising. They essentially hired someone internally from their company but interstate, who lacked all the qualifications, and they were paying them ($60k) very little. Where is $60k, compared to $80k, or $90k, or $110k. It's just a very scummy thing to do, imho, but apparently this is the norm these days. And that's just the start, they do so many other dodgey things.

            Sometimes it's bullet dodged. As simple as that.

      • sounds like a bank doing innovation in banking system / platforms / app - just my blind stab in the dark

        it really depends on the job prospect
        i took a pay cut when i moved from corporate to bank
        was almost 15k and lost my LSL where i have 1yr left to go, even worse, we have something called RDO which was 26days off on top of our AL/SL entitlement
        first year was bad - quite demoralising despite me acknowledging the pay cut when i accepted the offer
        funny enough they said exactly the same thing RE highest offer and how i could catch up in few months
        took me 1.5yrs to breakeven
        now after 3yrs i am making 50k higher (assuming old job has no pay rise)
        but my hours are definitely much longer but it worked out well for me
        upshot is, only accept if you see better prospect, and be prepared to feel pretty sh*t when things dont go your way at work and you wonder why you accepted a pay cut in the first place.

      • I hope you're not working on something akin to a CBDC… shifty eyes

  • it sounds like you're 'unhappy' doing what you are doing but who is to say you will be any happier doing the same thing somewhere else?

    look if you are unhappy becuz you work with a bunch of flogs that are toxic af or you just really hate the ACT then leaving would get you away from them and you might find a better work culture in the new job but that isnt guaranteed

    the only thing that is certain is your 'new' job is a step down salary wise and not a small step either it is over 15% less if it is the 'same work' and you dont like your current job becuz of the work you do then i dare say stay were you are you are going to hate the job regardless of where you do it. So you might as well make more money doing it.

    • I need a new work culture but feel like I'm not getting paid for my level of experience. I also keep comparing where I am in my life compared to others. 90k a year base is the top rung before you go to an "executive" in the APS. I feel like I'm better than that.

      • I thought you said $115K, not $90…

        I had a similar dilemma, more than once.

        In one occasion took the pay cut, to get the foot on a given industry… Sometimes you need to do one or two steps back to gain momentum

        In the other I did not, even though I loved the role in theory, but life got on the way… kids, a mortgage and did not wanted to move

        Opportunities will come and go, if you don't take this others will come. If you do take this you don't know where is going to lead you.
        The key is decide and do not look back
        Good luck

        • Sorry, I am on 115 base. The new role would be 90 base abouts (104 package).I feel so much better for saying no. What will happen will happen. Worst they can do is offer me more.

      • +2

        i dont know who downvoted you your just trying to get some advice

        i am in a different situation im married with two young children and a bastard of a thing called a mortgage that i wish would just f**k off but i know that it will be with me for a long time - unless i win the lotto or something like that

        Money matters more then 'smiles and a feel good' work culture to me at the stage of life im at, perhaps when i was in my early 20s i would of taken the pay cut for a place that has a more fun 'boys club' culture ie friday night drinks, tough mother weekends etc

        i dont know if that helps but i guess all you can do is make a decision that is the best for you based on your experiences.

        • So I'm 34-35, no kids, no mortgage, no house, decent savings, no partner. Now is the time. But I don't want the boys club mentality anymore either. So I could take a pay cut but (profanity) me it's hard pill to swallow.

  • +29

    Accept. Keep applying. If you find a job within 3 months, tell employer that they did not pass probation as they were not a good cultural fit. Enjoy.

    • +1

      cultural financial fit

  • +21

    No way, unless it is a job you know you are going to love and would do even if you didn't get paid. Cost of living is higher in Sydney and you'll have a way longer commute unless you want to pay twice what you're paying for housing here in Canberra to be near the city. It could be worth it if you love going to theatre shows and music concerts and plan to do something like that most weekends. Or something else that you can't do in Canberra.

    If you just want to get out of Canberra and don't particularly want to go to Sydney why not apply for some jobs in Brisbane, Gold Coast, Adelaide, Hobart, Perth, or Darwin. Pay will probably be less than Canberra but cost of living won't be nearly as high as Sydney (or Melbourne).

    • +2

      That is the thing, I don't know if I'm going to love it. I'm not wedded to Sydney.

      • +52

        As a life time resident of Sydney I would not take a pay cut to move to Sydney. If anything I would ask a premium for the hassle of having to deal with living here.

        • Good point!

        • +1

          As a long time resident of Sydney and having lived in Canberra for a few years I would pay to move to Sydney.

      • Take that extra 20k and travel to Sydney more often!

  • +10

    I’ve taken pay cuts of that size 3 times in my career, and been happier for it every time. I’m reasonably good at my job, so people don’t begrudge me pay rises.

    That said, I probably wouldn’t work for one of the big 4 unless I had an extremely clear career plan that involved leaving them again swiftly. And I would be looking for a substantial pay rise not a cut.

    But your priorities might be different, so perhaps you have other motivations.

    • That said, I probably wouldn’t work for one of the big 4 unless I had an extremely clear career plan that involved leaving them again swiftly.

      Why is that?

      • +25

        I don't think they treat their employees very well. Many of the partners I've had dealings with don't seem to care if a flippant decision means their team works all weekend.

        If you are a good networker, and you need the experience on your resume, you can likely get value from a few years there, but I would treat it like a 3 year contract where I wanted x, y and z to happen so I could leave for somewhere else.

  • +4

    Yes, if it makes you happy.

    One day you will leave the world behind and you won't regret being happy, but you will regret working too hard, or working in a job you didn't enjoy.

    • -2

      ah this comment makes me want to cry

    • +2

      You won't regret anything as you'll be dead

      • Not that you are wrong but I think you (if any) do not have the same religious belief as TheMindsetTraveller.

  • -2

    How unique is this field? That seems quite a low salary for the age. Assuming 10 years experience in Engineering and you're chartered, you'll be looking minimum 200k.

    • +2

      Pretty unique and quite Canberra. Work in science innovation and advocacy.

    • Got any source for that? Hard to find these things for engineering

      • I'm in the industry and have line management reports.

        Also check Sydney Metro or TfNSW's public salary grades report.

        • +3

          From the 2017 TfNSW award a Professional Engineer Grade C Level 4 got $144,870 from 1 July 2018. That's the highest level engineer in the award.
          It would take 15 years to get there if you progressed at 1 level each year.

  • +7

    Do I take a job for less money?

    No

    • +28

      I'm sick of working in Canberra.

      Oops…. I missed that bit…

      YES

  • +31

    Big 4 will always pay you less for more work hours. You'd only take a role at Big 4 to get the work experience in order to find your next gig.

    Also you were probably paid a lot because your current position is in Canberra. Don't let that distort your expectations.

  • +9

    I'm sick of working in Canberra.

    In a roundabout way?

    • Funny but I totally agree. I moved to Canberra from a city in the US where streets are straight. They might have thought of worm holes when designing streets in CBR.

      • +1

        Canberra was designed by an American

        • -1

          an American who wasn't from my city or his idea was rejected there.

  • +6

    If I were in your shoe:

    Money is not everything. It will not make me content. I can live with less money. I cannot get more contentment with more money.

    However, there is no guarantee that the new job will also give you the satisfaction you are seeking. So in summary: I will say that you need you know what your end objective is and device a way to get there, even if it means taking a lower salary.

    • +2

      My motivation is a new challenge and to get out of Canberra. I was willing to accept a 5k pay cut in my base salary, but 20k is far too much of a step back. The 10k bonus feels like a distraction.

      • Simple - apply for other jobs across a number of cities; if they all offer you less than you are on then this proves it's the Canberra bit that has inflated your wage

  • +9

    I know A LOT of people who have taken a pay cut by accepting a low stress role/ workplace and not one has regretted it. Lot of these people have gone from 300k to 150k and have called it the best decision of their life as it allowed them to spend more time with family, pursue further education or recover from health issues etc.
    A new job in a new city might give you lot of new things to experience. Could be a nice new chapter.

    • +6

      The problem is, this will be more work, more stress and less money. I worry I'll resent the role going in on less money.

      • +25

        You most likely will. The Big 4 tout that you'll gain experience and exposure to different clients but they usually over-promise and under-deliver (like the projects you'll be working on). And note that unless you play the politics game, good luck getting any meaningful promotions. I would skip tbh

      • More work doesnt necessarily mean more stress. But heavy office politics could mean more stress and make you resentful. If you suspect this will be the case then avoid and keep looking for another opportunity. Your decision should also depend on where you're at in life and your family situation.

    • Hes talking about working for the Big4. Low stress is not that.

  • +7

    Personally I wouldn’t take the offer. The loss of earnings are too much when you don’t even know if you’ll like the job. Keep looking for another opportunity.

    Does you current employer have offices elsewhere? Could you talk to them about a move? Do you have connections through your current role that might help you find something elsewhere. Presumably you’ve been checking various state government job sites, CSIRO, unis etc?

    • +1

      I saw a job at CSIRO that was very similar. Allied for a job at a uni that was 130. Won't hear for a month probably.

  • Just say no, look for other opportunities.

  • Canberra pays way more for every kind of job. Sounds like you're getting underpaid over there!

    • Isn't the cost of living higher in Sydney as well? Would need to land a pretty good job to be in the same position after living expenses

  • 6 years ago, I left the previous job, and joined the current company.

    The new job (current company) offered the same money as my old one, but I had to scarify 12 days RDO. Which means, it was a paycut offer.

    I'm glad I made the right decision leaving the old company. I have a group of good colleagues, and a good boss who appreciate my effort.

    • Have you progressed though ? Or are you on the same salary.

      • Surely he would not be on the same salary for 6 years!

  • +5

    I guess it depends how much you hate the current job - is it "I'm a bit over this" or "If I stay in this job one more week I may do something I will regret"?

    You've only been applying for jobs for a few weeks (start of January). Not knowing exactly what field you're in, are there likely to be more / better prospects if you keep at it for a couple of months (assuming you can - see my previous question :P )

    If you can cling on a bit longer at the current job and there is the possibility of other / better opportunities, then I'd turn this one down. Tell them no, and say it's because the salary on offer is not adequate. Hell, they may come back to you with a better offer in which case you can take the new job AND get the salary you want.

    Inflation is ticking upwards. If you take a $10k pay cut now, it may take you a long, long time to claw back that difference unless there are short-term opportunities for promotion that might push your salary up again?

    • +5

      Even matching the salary will be a pay cut if having to live in Sydney (or a leisure time cut with all the commuting).

  • +1

    it's pointless to be miserable just to get paid more. go with happiness, life is to short.

    • But what if you're miserable and earning less? That would just make you more miserable.

      • that's dumb, lol.
        why would you move somewhere else to get paid less and be miserable?

        just stay where you're if you are going to be miserable, at least you are getting higher compensation for it.

  • I once took a 50% pay cut.

    $20k however is a fair whack. I'm leaning towards staying where you are and keep looking.

  • It's a hard one - it's usually easier to bet a bump if you're moving between firms than it is to move within firms.

    However, given you're shifting industries you may need to take the cut, and keep looking once you're in there. Career progression is rarely linear, and 6-12 months of being paid less isn't huge in the grand scheme of things.

    Good luck!

  • +12

    we are confident you would progress quickly

    Big4 say this to everyone who questions progression/salary…

    • +11

      And if they are so confident OP can progress quickly why can't they offer them a higher level job immediately

      • +2

        And OP will probably be competing for that promo with teammates who have put in a few more years at the company and have been assure they are next in line for the promo. Or will find out that 'no one gets a promo within first year' etc

        • who have put in a few more years at the company and have been assure they are next in line

          it doesn't work that way…

  • +25

    DONT. Market currently lacks resources . Reject any lowball offers. If you are worth it, they will reach out. Tell the HR/Recruiter its way below ur current level. Big4 surely has appetite for more and expectations will be similar.
    Good luck

    • Thats probably why they have the 10k sign on bonus. But maybe that is a tactic used by an external recruiter who found the opp.

  • +5

    Here is an idea, assuming you don't have a partner and children can you ask for 3-6 months break from your current job. Go to Sydney and live in a share house in Newtown or Surrey Hills. Try the job and see if you like it, like the people and like the challenge. If it isn't amazing then go back to your old job. For that 3-6 months you can cram in all the cool stuff you can do in Sydney on the weekends as well.

    • Most employment contracts will include a clause that prevents you from working somewhere else whilst employed by them. Even if you are taking a 3-6 month break I'm assuming this would be taken as leave unless you somehow negotiate to resign and return to after the break.

      • That's true, they might make an exception if they love OP and replacing them permanently would be expensive (if they hope they will return after the six months).

  • +4

    I would suggest you to reject the offer and be firm that you wont accept the offer, for anything less than $xx. And then hope for the best, else keep trying.

    All the best.

  • +4

    In the application, it asked for my salary range which I put down at 115k

    In hindsight, this is a major party of the problem OP has encountered. The question is skewed that way to assist the employer.
    OP should have researched the salary band for the role they applied for, and quoted near the top of that range (or not apply if the $ were not acceptable).

    If it were me, I'd reject the offer and keep looking. The employer may come back with a higher offer if they are really interested.
    BTW, I think most salary packages include the mandatory superannuation payment as part of the quoted $ package, not in addition. Which is always interesting when the mandatory rate increases.

  • +3

    Money isnt everything at work - job satisfaction and the will to get out of bed daily comes into it.

    no point spending 10 yrs going to a job you (profanity) hate with people who are pricks with useless management who supposed those pricks

    YMMV

  • +11

    we are confident you would progress quickly.

    That's just a stock-standard reply to brush off your skills and experience. It would soon be forgotten once you've signed the contract. (The contract, obviously, wouldn't say, we are confident you would progress quickly) ha!

    Few years ago I accepted a significant paycut to work at a prestigious consulting company with similar promise. Few months into the role it was clear that I was heads and shoulders above my peers in terms of my skills and experience but I stuck it out, believing in the promise that "I would progress quickly". When comes time for annual performance review and I'm seeing some people getting promotion & salary increase, I asked for a review mine and got nothing, zilch, big fat donut of an increase. Simply a pat on the back saying to "keep up the good work".

    • +8

      Yeah, the thing is that once you establish yourself as a 'sucker', it is impossible for the company to change their opinion about you.

      From an organisational POV they thought that you were the kind of person that will work for less for years. There is no way to change that perception. You would have to move companies.

      • There is no way to change that perception ONCE YOU ACCEPT. But you can fix that perception right now.

        Go back and say "I want the job but you want to pay me a lot less than I'll be worth to you. The starting wage is 115k and that way we both get what we want". Modesty has no place in wage negotiations. If they want you they'll fold - and think better of you to boot. If they don't, keep looking.

        As for the "I'm sure you'll progress" line the right reponse is "Thanks. I too expect to progress beyond my starting salary, which is 115k". Because if you let them sell you short now they will keep selling you short.

  • Its a big pay cut but its also a massive hit to quality of life.

    Sounds like you'll be moving from okay money in Canberra to shit money in Sydney.

    I would weigh that up quite heavily because youre going to be getting less money which will have even less purchasing power.

    It could be the mistake of a lifetime.

  • +2

    Counter offer with what will make you happy to move to Syd and do the new job.

    If they say yes, great. If it's a no-can-do response then find a new opportunity.

    Any big 4 or consulting firm will have tight work deadlines and long hours combined with low promotion opportunities. Do you really think you'll get a promotion in the first 1-2 years when people working there longer than you have are also waiting for a promotion?

    Edit: for context, years ago I moved from syd to cbr for less money and was salty about it for a while. I did get promoted relatively quickly at a consulting firm which did help but I'd say that was an exception.

    If you do go ahead with the move, think of it as a stepping stone to where you actually want to end up work and life wise.

  • +2

    Unless this is your dream job I would not take it. - and it doesn't sound like it is.

  • -1

    I'd let someone else take the role and enjoy a better workplace for 2 years before moving up to a higher position with better pay and still in the better work environment.

  • +3

    Nup push them.
    The big4 are known to squeeze every last drop from you.

    I had a mate who transferred from gov to the Big4 and provided your resume checks out they'll make it work, he did kind of play hardball though.

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