Would You Take a $25k Paycut?

What would you do?

I'm am grateful and fortunate due to a series of events and the right timing, without a qualitification, I am in a temporary managerial position in the government sector.

However I am burnt out and I am craving a more life and work life balance. The field I'm in does not offer work from home.

I am a single mother, with 3 kids in yr 4, 9 and 10.

I have decided I want to leave the company and start afresh with a company that offers working from home. I don't want to take up a new manager position, I want to do admin and see where it takes me. I believe the opportunities I had were due to the networks I had built up and my positive, can do attitude. So i feel more confident starting there first.

But..it's looking like the position I feel confident to apply for are starting from $60k.

What would you do?

I am conflicted and don't know where to go for support, I feel I have reached my limit. Do I burn out and come home unhappy, tired stressed? Or would my growing kids rather a more present mum?

  • Update: Thank you Ozbargain community for reaching out to me. It has been a relief to get this off my chest and get advice from you. Thank you for listening to me. I will have the confidence to give it a go and also to ask for help :)

Comments

  • +20

    I feel I have reached my limit.

    and

    Would you take a 25k paycut?

    If you feel that way, I wouldn't really call it a question/option anymore. If you think you've reached your limit, do something about it now. It'll be much harder to go backwards once you've gone past breaking point and not be able to work at all. Most larger corporations or government organisations have an "employee assistance" program that you can reach out to for confidential support.

    • +5

      Thank you..I had forgotten about the simplest things..the EAP for help. You are right..my health has taken a toll.

      • +16

        The fact that you're recognising it early and willing to do something is really good already. I think lots of people go into a state of denial for quite some time and let their issues manifest in other ways.

  • +11

    Depends if you can afford it. If taking the pay cut will mean you live out of your car under a bridge, that's probably not a great choice. However if you own your own home with no mortgage, then it sound like it could be a great choice.

    • +5

      Thank you..I still have a mortgage and I hope I'm correct in saying it is under control even with the interest rate rise.

      • +13

        Well, if you can afford it, and it will make you happier, and with more time with the kids, sounds like a pretty good thing to me.

  • +16

    Seconding what @brendanm and @bobbified have said, but I'll add this too:

    But..it's looking like the position I feel confident to apply for are starting from $60k.

    Don't shy away from the positions that you're not as confident in applying for, either. It's a buyer's market in the employment space right now, and from what you've said it sounds like you've got a lot of contacts and people that can 'grease the wheels'. You probably have a lot more leverage than you think.

    • +8

      Don't shy away from the positions that you're not as confident in applying for, either.

      Great point. Can go for something that may technically be "outside the skillset", but has less responsibilty than the current management position. Fake it til you make it.

      • +9

        This is a great confidence booster. I am guilty of having imposter syndrome, but hand on my heart I am genuine and have been luckily enough to stay out of office politics. I should have more confidence in myself and though I don't have qualifications, my skills are definitely transferable.

      • +6

        Or.. Fake it until you become it

        • +4

          Isn’t that what everyone does?

          That’s what we’re all doing… right? Right?

          • +1

            @jjjaar: When starting out in something new? I believe the honest answer is mostly Yes.

          • @jjjaar: Nah.

            I'm not faking it, nor really looking to make it.

            "Make it through", sure.

            But, "Make it there"? Where is everyone going???

            Ants on a balloon the lot of us, I say.

        • +1

          Imposters unite!

    • +2

      Sellers market, not buyers market? The employers are competing to buy the labour the scarce employees are selling?

      • I had a feeling I chose the wrong one (I bounced between them and settled on buyer's market for some reason). But yeah, that's the idea.

  • +3

    the position I feel confident to apply for are starting from $60k

    Your post didn't mention which city/state your in, but I feel like you should be aiming a bit higher. Minimum casual wage is up close to $30/hour these days.

    With some experience, you can probably land a job paying 70-80k, with no managerial responsibilities.

    • Thank you, my role primarily dealt with Covid restrictions and managing staff coping with Covid restrictions. That was the managerial part I struggled with.

      I will broaden my Job search again :)

    • ..and I'm from Sydney :)

      • +1

        I will broaden my Job search again

        Take a look at sales jobs - cars/retail/recruitment.

        Its not everyone's cup of tea, but they generally pay well and don't require many skills. Can also fit in well with a 9-5 mind set.

  • If you feel happier living on $25k less why not?

    • Because happiness is less important than paying the bills and providing for your children.

      If OP is not yet happy with her lifestyle and career this late into raising a family, it's safe to say she has no idea what she wants.

      • Slow day?

  • +9

    Burnout is real - and don't underestimate the effects it can have on you, your life, and your family.

    Taking a pay cut is hard to do; I've genuinely considered doing this myself, for exactly the same burnout reason. But don't forget, doing this might just mean you're trading work stress for financial stress and regret.

    No one can make this choice for you; your family is unique, as is your personal comfort with financial stresses.

    Before making the choice I can only recommend taking some time off to recover a little - and take a fresh look at the job market, for comparable managerial roles at a more flexible company. Company culture can make all the difference. If that doesn't work out, you can always move again to an admin role.

    Best of luck

    • Thank you @Barge. That's exactly it. I've been weighing up pros and cons of both sides.

  • -8

    Honestly speaking 70K is all one really should need to fulfil most of their happiness, I barely make like half of that, and am not that happy with not being able to afford a home mortgage etc. but nevertheless still better than someone on centrelink or unemployed. Never appreciate less on great things what you already have compared to others. Consider yourself privileged to have most of stuff you have.

    At 60K you should be able to survive easily.

    • +2

      Do you have children and responsibilty?

    • +7

      At 60K you should be able to survive easily.

      With 3 kids and a mortgage?
      Please show your working……

        • +5

          Well that's a you problem you didnt plan before having 3 kids
          Where the heck is your wife ? Is she not earning anything ??

          Ahhh…did you even read the op ???

        • +4

          Op is a woman.

          For all you know, she had a husband, and he died of cancer, or a workplace accident. Even if he didn't, why can op not have kids? She has a house, stable job, sounds like she's doing well, and trying to provide a good life for her kids.

          Shit, shes making double what you are, while juggling kids, a job, and looking after the house.

  • +9

    I've taken a substantial paycut three times in my career, and it has always ended up with a better role and no meaningful financial disadvantage after a year or two.
    Once was to get a job in an exciting industry, once to get flexibility around work from home, and once to do something cool and interesting.

    That said, I also rode out a bunch of years in a job I found a bit tedious and with limited growth because my bills were relentless and my kids were young, and it was the lowest risk option.

    I've been happier every time, though it has only ever meant a bit of belt tightening, lower savings and skipping international travel or updating a car - not actually going without anything super important.
    If you can do it without going without the important stuff, I'd say definitely consider it (but have a 12 month plan to find the right role, not just the first one that is a parachute).

    • -6

      Did you take those payouts for “admin” roles? If not, your own experience is invalid, especially as it sounds like you went sideways rather than stepping down into things well below your pay grade that anyone with zero qualification can do e.g, “admin” roles.

      • +4

        Well, the first one was $40k to $30k, so it wasn't a high flying exec position.
        But what you say is true, I never left a job I had developed experience and seniority in for a zero-grade, school leaver position.

        I read the question as have you ever taken substantial pay cuts to pursue things you want to do more. I didn't aim to make it sound like I was starting from school leaver status again.

    • +1

      I absolutely love that analogy about the parachute! I feel like things have built up so much I just want to jump ship (or plane)! I feel like I'm grasping at anything (the parachute) but am thinking about what it looks like when I land. I'm so glad things worked out for you. I guess I needed the assurance things can work out after you take the leap, and expect to make a few sacrifices.

  • +12

    This year, took a $70K pay cut and much less favourable work conditions, but the work I do is something I am passionate about, and friends and family think this role is well suited for me. It is hard to let go of comfort and security, and even harder to commit to change. One day we will all die and I want to know that I took a chance and pursued happiness.

    • +2

      I am in awe! Happy you took the leap and your friends and family can see you glow.

      I wish I found a passion! After the past few years, I have this desire to help people. My job didn't feel rewarding..just think really strict Covid restrictions and enforcing them.

      • -1

        oh youre one of those people..

  • +1

    There's no right answer because only you can make the decision. There are also a whole bunch of other things that you should take into account as well - definitely pay and work/life balance are important, but what about career trajectory, how meaningful you find the work, whether you enjoy the environment and get along well with your colleagues…etc.

    At the end of the day, money and time are substitutable to some degree (even though many people might get philosophical and deny this). $25K is a lot of money and that goes a long way. For example, if your goal is to better provide for your kids, this can be used on childcare, tuition, better schooling, better resources for them to learn, sports, extracurriculars…etc. Maybe you will have less time with them, but you can afford swimming lessons and piano lessons (for example). It's difficult to get to the right answer about what's best.

    I grew up with very busy parents who worked hard to provide for me. Maybe I would have appreciated more time with them as a kid, but at the same time, maybe if I was in that position, I would have appreciated more extracurriculars, sport…etc. that I might not have gotten. It's hard to say, right?

    I am conflicted and don't know where to go for support, I feel I have reached my limit. Do I burn out and come home unhappy, tired stressed? Or would my growing kids rather a more present mum?

    At the end of the day, I think you need to think about why you're unhappy. You raise WFH, but I don't really think that this single issue is what makes the difference between you being happy, and you being "unhappy, tired, stressed". I can understand if you're saying you'd appreciate the time you save from commuting or the flexibility, but I don't see how WFH will solve tiredness or stress.

    • I think it's my mum guilt coming out.

      I was OK during Covid where I was happy to separate work and life by coming to work. But after seeing everyone being able to WFH, after 2.5 years and doing extra curricular with their kids, and here I am getting home quite late (That's dropping everything at work to get to after school care before they shut..) I'm now thinking..wait..I want that now..or at least some flexibility.

      Though this situation has meant they missed out on extra curricular activities (I had little time), I was able to take them on trips every school holidays which is what I'm grateful I'm able to afford to do. Will probably mean we budget it rather than the lovelier, comfy ones. Making memories, right? :)

      We are taking on a huge project soon, and that will only mean more work on top of my usual work (gulp).So I guess that is what tipped the scales.

      • +1

        I was OK during Covid where I was happy to separate work and life by coming to work. But after seeing everyone being able to WFH, after 2.5 years and doing extra curricular with their kids, and here I am getting home quite late (That's dropping everything at work to get to after school care before they shut..) I'm now thinking..wait..I want that now..or at least some flexibility.

        FWIW, WFH does not necessarily mean flexibility. I'm not advocating for working from the office, if anything, I strongly dislike the time wasted on commuting (not to mention the negative environmental impacts). However, I do strongly believe that flexibility is something we create and if you're finding your current job inflexible, you'll probably find the same for other jobs too. Employers are always going to want more from you, it's up to you to draw where the boundaries are and make it work.

        I previously worked in financial services where 12 - 14 hour days were common. Some people I knew burnt out, but those who succeeded know how to play the game. I was still able to pick up my kid from school, have dinner with him every night and help him with his homework…etc. However, I had to actively make this happen. It does involve saying "hey guys, I'm heading out of the office now, but I'll pick up these priorities on the train", or "I'm having dinner at 6.30pm, but I'll be back online later". It does involve building trust with your colleagues so that they know you don't have to be supervised.

        I think there's a lot going on for you, and perhaps this is an opportunity to seek professional help from a counsellor who can get to know your personal situation and work with you to regain happiness. There's also a case to be made that there are options you've probably not yet explored. For example, maybe you can discuss options to work your current job on an 80% capacity. You'll earn more than 60K, you're working only 4 days a week, which might be a good way of managing your stress.

        In any case, there's light at the end of the tunnel. Your kids in Y9 and 10 are almost done with school and are at the age where they will start valuing their independence. It's important to think about a job that will make you feel happy once your kids are all grown up too :)

  • -3

    Do not do it. $25 k is a biggg step backwards.
    Why are you burnt out? Try to manouver your role description and change things. If you are in a manager position you should have some power to do this.

    • Appreciate your comment @gourmetfoodie. This is what my family and closest friends that i have confided in tell me. Hence the reason I'm torn. My head and my heart is pulling me in different in directions. As those have mentioned above, it'll take a lot of sacrifices. Stress in my mind and to my health VS financial stress.

      In our area we are all burnt out. Getting staff to join us but work on site 5 days a week has been extremely challenging. We are understaffed and as long as staff have this option, I don't see this situation changing soon.

  • +4

    Some good points here. The only thing I have to add is to make sure if you do go to a lower paid position it doesn’t come with the same or additional stresses. I’ve sometimes thought I was going into a better role and then realised after that some of the things I was leaving the previous role for are the same with the new one. This would be pretty miserable if you’re earning less as well. Honestly I’d see if you can find something of a similar level/pay which has a better work culture and more flexible work arrangements.

    • +2

      Thank you, this is great advice too. I will revisit similar paid jobs too now :)

      • +1

        Good luck with it all! I hope you find the best gig for you.

  • +2

    But..it's looking like the position I feel confident to apply for are starting from $60k.

    Women typically apply for jobs where they can already confidently do all the things in the selection criteria. We are our own worst enemy.

    On the contrary, men typically apply for jobs when they think they can do most of the things in the selection criteria.

    One stat I read once was that men will apply if they can do 60% of the KSC, women wait for 100%.

    Take some chances. Apply for roles that are higher than the $60k. Don’t take it personal if it doesn’t work out, but you miss 100% of the shots you don’t take.

    • +2

      On the contrary, men typically apply for jobs when they think they can do most of the things in the selection criteria.

      I'll apply for a job when I think I can maybe figure out how to do some of the things on the selection criteria!!!

    • +2

      Anecdotally, I agree.

      If I can cover 50% of the roles requirements, then I'll apply and see how the interview goes.

      Having had to write a JD before, I had to ‘fluff’ the requirements up in order to get the pay scale to the required level to even get someone. I wouldn't have expected anyone to have more than 50%.
      I hired a couple of internal people with the view of upskilling with 30% of the JD and none of the technical skills, but they had aptitude.

    • +3

      This is really interesting!! I have seen this happen! Thank you for the confidence boost :)

      • +2

        No worries! I used to not apply for jobs because of the same reason. Then I read that and stopped my hesitation. Applied for my dream job, though a level higher than what I could confidently do. Got the job.

        A few months later I asked one of the people who hired me why and they said they knew I had a great foundation and would get the whole way there a couple of months later - at the point that I asked, they said I was exactly where they wanted me.

        It helps to have someone see that in you, but if you don’t apply in the first place, they wont see it!

  • +3

    I have never taken a pay cut, I always aim to earn $10-$20k more for every job. What has happened is that I have gone through jobs that were demanding and stressful. But now I realised that the higher you go in ranks, the easiest it gets. The more senior your position gets, the less demanding it gets.

    I honestly don’t think $60k in Sydney is enough to be able to give you spare change for travel etc..

    But happiness is individual and not directly linked to money, so do what makes you happy

    • It would be quite tight for me.

      This is interesting because I'm looking at my managers and they are not definitely doing less or having it easier. We are all under the pump. Perhaps it's the field I'm currently in.

  • +4

    Could you consider going part time and working 4 days a week? That extra day could make a big difference to work/life balance and you'll not be any worse off than going to a 60k job (where presumably you'll be working 5 days full time). You can always then ask to go back to full time in the future an not really lost your position/progression. Obviously this will be a conversation with the company, but if they don't want to lose you they'll make it happen. The only issue with this is making sure you switch off for the day off, so you aren't still doing 5 days of work and getting paid for 4.

    If the workload is so high that they are not going to be flexible than maybe you need to leave. I would definitely hold out for at least equal pay somewhere else unless that other job is a dream job type situation - you may end up working just as hard but for less money. Shoot for the stars and see what you can land in.

    • Work is definitely not flexible at all. Considering low staff, i wouldn't dare being it up. I know the response would be it would not meet business requirements.

      You are right..there's no where else to go, I'm looking elsewhere.

      I would love to do a 4 day week or 9 day fortnight for more hrs and have a day off. If I see that role advertised I would definitely go for it.

      • If you really want you could put it to them, sounds like you have some leverage especially if they are so understaffed.
        Get another job lined up with an offer then you should be confident enough to offer a carefully worded ultimatum if 4 days or partial remote.

        Another option might be to stick it out while earning a qualification for the current role. Your lack of training might be causing additional stress (coming from past experience). Once you are qualified if will mean you have "X" number of years experience and qualification so can be more valuable to new employers, which means you can be more careful with the culture/conditions at your next job.
        I've found once i make an escape plan then work stresses are easier to cope with/ leave at work.

        Fwiw, 6months after our 1st born I left a job and took a $45k pay cut, but the conditions were better and HEAPS less stress. I can definitely see the appeal and agree that it is scary.
        One thing I managed to do was have written into the new contract that once I got a certain qualification (which they needed) it meant a $20k bump in salary, which motivated me to finally get it.

        Ps- if your new role is remote and given you are in sydney with tolls it might pay to figure out the true dollar figure. 25k less isn't actually 25k less take-home pay and I think everyone has realised how many $$$ can be saved by not commuting every day (thanks covid). Once you look at those numbers it might only be 10-15k?

        Pps- New job I've been in for a month is a 4 day compressed week, it's (profanity) fantastic! Currently on ozbargain sipping my morning coffee now the kids are dropped off 😎☕

  • +2

    A lot of people I know are happy with $60,000 a year and can budget. My brother is on $150,000 and hopeless with money and always talking about earning more.

    If you will be happier go for the $60,000 job.

    • Curious, is your brother in a stressful /demanding role?

      I felt the more you earn, the more stressful it is.

      • I felt the more you earn, the more stressful it is.

        I do not believe this is true. As someone said above many senior people have less stress. This is because they have more freedom in their jobs and can delegate. It also has to do with how conscientious you are, and women often are excessively so and ensure that they complete all work at a high standard. Most of all I think it is due to different cultures in workplaces. Some just keep pushing staff to do more with less while others may have reasonable resources to do that work and/or better protection for staff.
        I think if at all possible you should change jobs soon. The place you work has not shown any concern for you and others. The prospect of more work without more resources is just exploitation. They may be happy that it's hard to recruit more staff. If they were more flexible maybe they could. You say the work cannot be done from home but before Covid that was believed of ALL jobs. If they cannot lose more people you should be able to negotiate change.
        Also, this is the time your children and especially the youngest will need/appreciate having you around. The older they are the less they want of our time. It is not always that the holidays are important but just being able to give them time when they need or want to talk. If this is not established they will go to someone else, often their peers, and possibly not get a good outcome.

  • +5

    I say work from home and be around your kids more.

    You won't be free all the time, but being able to grab a hug or share a smile inbetween tasks, and no commute, means more time for family, which is what you're working for anyway.

    If it works in terms of budget I say go for it.

    My experience is that burnout goes from
    "I don't want to do this anymore"
    To
    "I don't want to work at all"
    To
    "Can't work at all and now I don't want to do anything…" I.e. a clinical issue.

    Health and sanity before anything else I say. But that might be because I'm slightly mental and don't have any kids to feed.

    • That is exactly what I want and what I have been missing out on. The little moments count.

      That's my exact script..

      I am almost at "I don't want to work at all". I know there's more work coming up on top of what I am already doing.

  • +1

    If it's Government (even though you mention company). Get seconded to another department and you can always go back.

  • +2

    If you're on $85k with the government, you could probably get $100k-115k in a non government company.

    Also remember that if you can tick off everything in a job description, you're probably ready for a new role.

    If you can cover a foundational part of the JD 50-60%, it's probably a good fit. When I was a hiring manager, I didn't want anyone that had 100%, because I knew they would be ready to move on (unless that person had a legit reason for staying at the current role eg family/health were the priority).

    Back yourself and find something remote for the same, if not more cash. You don't necessarily need to be a manager either.

    Not allowing WFH is crazy now, I would expect 2-3 days at home to be a minimum now.

    • +1

      I love this insider advice. Thanks!

      • Good luck with whatever you choose to try. I'd love to hear how you landed in a couple of months time. Maybe revive this post/new post and give a summary of your experience.

        • +1

          I'd love to share how I go..what I learn along the way. Thanks for your support.

    • If you're on $85k with the government, you could probably get $100k-115k in a non government company.

      This is true, but having worked both in the public and private sector, I don't think it's comparable $ for $. When divided by the actual number of hours worked, government jobs are very cushy. There's also the question around whether you enjoy all of the bureaucratic nonsense that goes around in a lot of the line department - some people enjoyed it because it meant the pace is easygoing and things don't move quickly. Others hated it. Depends on what you want. There's also a lot of tricky trade-offs to consider as well. It's much easier to get stuck at dead-end levels in government, e.g. APS6 can be a dead-end for a lot of people, EL2 is another one with the jump from EL2 to SES1 being tricky.

      Don't think one is better than the other, but I'd say be weary of comparing like this.

      • Great insight. I’ve never worked public, so I was taking a guesstimate on her working with covid response, and that having a high workload.

        It's going to be different everywhere. I've found banks to be quite cushy, although more accountable, and telco hectic and a little more forgiving.

  • +4

    It's not a pay cut, it is insurance toward a much healthier life

    • That is right. I'm taking on suggestions I made not have to start from there, to aim higher. I'll give that a go :)

  • -1

    Nothing wrong with taking a pay cut if you can afford it. As long as you're willing to take responsibility and admit that you earn less because of YOUR personal decision. It's not slavery, sexism, wage gap etc.

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