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Posted 05/06/2021 in Category 1 by Amelia Grant

7 Situations When When a Small Salary May Be Better Than a High One

7 Situations When When a Small Salary May Be Better Than a High One

The idea that your wage could become lower but leads to positive consequences has looked ridiculous about 20 years ago. For most employees, regular salary increases were a sign that the employee is on the right path. But in the modern world ups and downs in income are considered the norm and don’t necessarily indicate your success at work. Moreover, in some cases, a smaller salary can be even better than a high. 

Below are 7 situations when a small salary can offer you more benefits than a higher one.

1. An ability to save your work

According to a study by the recruiting agency Hewitt Associates, in the United States during the 2011-2012 recession, 16% of large companies cut their employees' salaries. On the part of corporations, this was a forced measure that allowed them to retain staff and leave them at least part of their income. According to analysts from the Salary resource, most workers consider cutting wages better than dismissal.

2. Change of profession

In most cases, people have to choose a profession at a young age. Subsequently, many of us are dissatisfied with our work and over 55% of employees admit this. Salary experts emphasize that if you like a certain type of activity, do not give up on it just because it offers a small salary. Starting a career is rarely associated with high income. Nevertheless, this stage must be passed to acquire a new profession.

3. Finding your favorite job

Former CFO of Restoration Hardware and Safeway, Tom Lowe ditched a multibillion-dollar business that didn’t please him and started working at East Meets West, a charity firm that helps underprivileged people in Asia. His example tells us the following: if you go to a job that you find pointless or unbearably boring, you should not waste time on it, even for the sake of a big salary. Money cannot make you happy, but an interesting activity, even a low-paid one, can.

4. Perspectives

According to analysts, a decrease in salary is normal when you are moving from a small company to a larger, more stable organization with potential opportunities for career growth. For example, working in a large accounting firm can offer you more benefits than the same work in a small but unclaimed place. Even if at the first stage you have a small salary, in the long term, thanks to your hard work, you can expect a large income that will exceed the salary at the previous work.

5. Relocation

If you are going to move to a small, quiet town or countryside, be ready to get a smaller salary. This is a natural process associated with different living standards, which ultimately affects the income of employees. However, the good news is that you can save on your daily expenses, for example, by paying less for renting an apartment or shopping in stores. Even if your salary is significantly lower, you will compensate for this loss with positive emotions, which will bring you a new living place.

6. Balance between work and personal life

Over 45% of employees are ready to decrease their salary to get more flexible work hours. This can be the right solution if you want to be with your family more often or pay more attention to your interests and hobbies. After all, not a single person on their deathbed complained that they spent little time in the office.

7. Work close to home

In large cities, employees sometimes have to spend two to three hours a day on the way to and from work. But do you really think that these hours spent in traffic or crowded public transport are worth the salary you receive? Even if you drive to the office by your car, calculate how much you spend on gasoline and car repairs. If you find a job with a lower salary, but closer to home, you can save on your daily expenses and even win some.