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HOW TO MARKET YOURSELF TO EMPLOYERS
Dealing with a Salary Cut You love your job, but circumstances beyond anyone’s control mean that you have to take a pay cut. It is a bummer, but there are ways you can manage the situation and minimise the damage.
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t may feel like the end of the world when you are told that your salary has to be slashed – being asked to take home a smaller cheque with no change to your workload is no one’s idea of career satisfaction! Unfortunately, this is a strategy that companies use when they need to tighten their budget in order to stay afloat during a global pandemic, recession and curtailed growth. Although it is common knowledge that salary cuts are a necessary evil, it does not mean that the situation is easy to manage. Because of this, it is important to figure out how to address the challenges that come with the situation. Especially if you love your job and the company has informed you of the pay cut respectfully and delicately, you may prefer to stay with your current job rather than take the risks with a new one. Besides, depending on the severity of the recession and the type of industry you are working in, there may not be many job openings in the first place. So, the first step you need to take is to learn how to manage your emotions, your health and your finances while dealing with the pay cut. Tackle this challenge successfully, and you will look back at this moment as just a minor bump in your long, successful career journey.
Ensure the reduction is in line with government guidelines When the results of the economic fallout in the wake of the pandemic and tightened budgets became more widespread, companies began slashing employee wages in a bid to maintain solvency while keeping their workforce in place without (much) retrenchment. Although most employers have the power to reduce pay at any time, they will typically specify a period of time or circumstances which necessitate the smaller paycheque you will be bringing home. However, these cuts must follow strict guidelines the National Wages Council (NWC) put in place to protect employees. Do not be afraid to ask your employer for the parameters used to calculate your reduction as well.
SIM CAREER GUIDE 2022
Consider familiarising yourself with government guidelines • Familiarise yourself with the Flexible Wage System (FWS) • Ensure your salary cut is fair and reasonable • Check if you are eligible for the 13th month bonus • Check when your salary will be restored
Identify your anxieties and mitigate them If you were already dealing with financial stress and student loans even before the announcement of your salary cut, take some time out to settle your mind and emotions first. Although it can be a battle, you need a clear head to come up with a game plan. When you have cleared your mind, start identifying your sources of financial anxieties by creating a list of bills you have to service, as well as present expenses. Then, think of ways on how you can work with a smaller paycheque, whether it is cutting unnecessary expenses or considering taking up freelance work.
Consider these ways to continue saving • Extend your student loan tenure • Take advantage of insurance policies or national medical schemes (e.g. CHAS) • Tighten your budget
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