When a Pay Cut Can Help You Climb the Career Ladder
Where do you want to be in five years? Do you have the skills required to do this? If you don’t, you may have to go down the corporate ladder before you can start climbing again – and yes, that could mean a cut in wages.
Diya Jolly, Okta’s chief product officer, deliberately cut wages three times as part of her long-term career strategy. As she explains on CNBC :
In three stages of my career, I took a step down and agreed to lower title and salary. I know that without any context, this sounds like a flawed decision. But every step I took up the career ladder was deliberate and helped me achieve greater long-term success, both in terms of achievement and in terms of rewards. Each new role taught me the skills I needed for my long-term growth and brought me closer to my ultimate goal of becoming a product leader.
If you are thinking about making a similar decision, ask yourself what kind of job you need now to get the job you would like to have in the future. One of the best ways to determine if you are on the right career path for the job you want is to examine the career history and skill set of the people who are currently in the position. Is their career the same as yours, or have they all held a specific position that you have never held?
If you are connected with one of these people personally or professionally, it is worth asking them for an informational interview, or if you do not want to put a formal label on the conversation, see if they are ready for coffee or a quick chat. You will want to know what it really is like to be in this position (to make sure this is what you really want) and to clarify if you need to upgrade your skillset before applying for a similar role. Ask the person you are interviewing if they recommend you take a step down the career ladder; they may offer several alternatives, such as term papers or certifications.
You may also be able to find the job you are looking for without lowering your wages. Do not show up for job interviews and pay negotiations believing that you will have to accept an offer that is lower than what you received previously. However, be prepared to bring up the topic – and be prepared to explain why you are looking for a position, how your current skills can help the company solve its problems, and what you hope to gain from your career. both in the short and long term.
Ultimately, you will want to create both a career story and a set of skills that will allow you to develop your network and reputation in order to achieve what you want – even if it requires a short pay cut. As Jolly says:
To reach your goals, you need to focus on long-term growth, not just your next promotion. Identifying the skills required to achieve this and taking the time to develop them is your best form of job security.
If you end up settling for a pay cut, we have some tips to help you manage your reduced income and prepare both your career and your finances for the future. If you take the right step, you will be happier at work and will quickly find an opportunity to start climbing the career ladder again.