Many companies trying to stay afloat amidst the current economic slump are starting to trend away from layoffs and towards pay cuts as a way to save money. And like it or not most employees are stuck dealing with it, since rising unemployment rates mean they have fewer options and even less negotiating power. Being underemployed and dealing with a significant drop in income can be almost as bad as being altogether unemployed, as both can mean important bills can't be paid and making less money now can have enormous impacts on the future in the way of 401K values and social security earnings.
Ugh, what a mess.
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Reader Comments (Page 1 of 1)
Stephen says: (7:59AM on Jun 12th 2009) Vote Up Vote DownReport2.5/3
As a recruitment professional I have seen this first hand... large companies have trended to rate cutes on their current openings and most recently hired consultants. I can name at least three major companies in the US who have dropped their current rates between 5% and 15% compared to what they were post recesssion era. The same can be seen for the candidates who are applying to jobs though... because they know that there are more candidates on the market applying to jobs and they want to give themselves a better chance of attaining specific positions they will lower their compensation in hopes that it will make them more competitive in attaining said position.
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