I am based in NYC. Many companies offer salaries more suitable for lower-cost regions, resulting in significant pay cuts. Currently, I’m in the running for interviews with [Tech Company[ for a marketing role (42% salary cut) and [Financial Company] for a tech support role (74% salary cut), but both positions come with substantial salary reductions. I am not being considered for anything remotely close to my last role’s salary. Additionally, several companies have shared that they are not considering me because of my location and salary expectations. – Recently laid-off IT Analyst
This IT analyst was laid off this past summer, and signs of a cooling job market were already showing in the spring Therefore, it makes sense that current job seekers may see lower-paying job offers. However, you may not need to take a cut in salary or career momentum. Here are five strategies to bounce back from a bad market without sacrificing your career:
1. Uncover Why You’re Seeing Lower Offers And Shift The Narrative
You might be seeing lower offers because prospective employers see the gap in your resume and assume you will take less. Your most recent salary is a strong anchor for your next negotiation. When you’re unemployed, your most recent salary is $0, so unless you shift the narrative and introduce a new anchor, a low salary is still higher than $0.
What alternative anchors can you use? Use current salary data for the role you’re targeting if it reflects the salary you want. If there is a measurable bottom line impact that you can achieve on the job, use the value of your contribution to anchor your negotiation. Finally, if you have a competing offer at a higher salary, that is a strong anchor to reposition how other companies see you. You can negotiate for better pay even in a tough job market and even if you’re coming back from a layoff.
2. Make Sure You’re Targeting Jobs At The Right Level
For this IT analyst, the jobs they’re considering are so far away from their most recent salary that they might not be targeting the right jobs at all. Before you assume that salaries in your field are dropping, make sure you’re targeting jobs at the right level. A role where you have a smaller team (or no team) or where you have fewer responsibilities may pay less because it’s a smaller job, not because of a shift in the market.
Don’t just use the posted job description to determine the level of a job. Research the company to uncover what their key priorities are. Network your way into decision-makers to get firsthand nuance about what the company really needs. Then focus your marketing – i.e., networking pitch, cover letter, interview responses — on how you’ll contribute to those needs and priorities specifically, not just the stated tasks of the job. This way, you align yourself with what is most important to the company and brand yourself as indispensable.
3. Expand Your Job Search Without Lowering Your Standards
Don’t let the online application filter you out by putting too high a salary target. See if you can skip the question, or put $1 if you must insert a number. This way, you can move into the conversation phase and have a chance to present your case for what you’re worth.
If you have to mention a salary, give a wide range, and emphasize that you’re looking at a range of roles, so you’re not pigeon-holed at the start. Even if you initially shared a low salary target, you can still negotiate up during the interview and offer process. Even when a company says that are bound by specific salary bands, you can negotiate beyond salary caps once you understand the job and get the company to really want you.
4. Look Into Consulting Or Freelancing To Maintain Your Income And Options
If you need money right now, look into consulting or freelancing to get some cash in the door but also maintain your options to continue looking for something else. These short-term assignments could convert to longer-term arrangements. You might decide to pursue consulting as your career and build out a proper business. Or, one of your current consulting clients might hire you in-house and put you on their payroll.
If your consulting work isn’t your dream job, you can still grow your career while working a less-than-ideal job. Continue to follow news and trends in your target industry so your expertise stays relevant. Nurture your network because you are more likely to hear about higher-paying opportunities from plugged-in colleagues and active decision-makers than by perusing job ads. Hone your relationship management and communication skills as a consultant, which will translate elsewhere even if you end up working in a different role.
5. Future-Proof Your Career To Ensure This Doesn’t Happen Again
Layoffs can hit even high performers. A downturn in the general economy can hit even strong companies. You need to prepare for career adversity so that you don’t get stuck in the next downturn. Since it’s impossible to anticipate every change, future-proofing your career means knowing how to stay competitive no matter the circumstance.
Make growing your career an ongoing priority (use the suggestions in Point 4). In addition, maintain a strong financial foundation separate from your job, so that you have alternative income sources. Examples of non-job income sources include a side hustle, an emergency fund or rental real estate.