Smart Moves: Should I Relocate For a Job That Pays Less?
Question: I work in
-- James G.,
James: I can understand your confusion. Most of us have learned to
expect an increase in pay, not a decrease, when we move to another employer.
This is certainly the case if the new job is a step up the ladder from what
you're doing now.
But I'm assuming that you are making a lateral move and will be
doing the same thing in
Typically, companies take geographic differences in living costs
into account when determining salary levels for their employees, says Laura
Sejen, practice director for strategic rewards at compensation consultant
Watson Wyatt Worldwide in
I don't know why you are considering a move to
You can research cost-of-living differences nationwide, using the Salary
Calculator on CareerJournal.com. It shows how much you need to earn in one
location to equal what you are making in your present city. Assume you are
making $100,000 now and own your own home. According to the calculator, you
would have to earn only $94,731 in
So while I've used
As for your second question, most companies don't reduce the
salaries of employees asked to move from higher- to lower-cost areas, where pay
levels are lower, says Ms. Sejen. Instead, they typically keep paying the
employees who move the same amount if their old salaries are within the salary
"range" -- the lowest to the highest salaries -- paid for the same
jobs in the new region. Those employees might receive lower raises for the next
few years until their pay becomes more aligned with the local levels, she says.
"It's rare for companies to reduce an employee's salary,
particularly if they are being asked to relocate," she says. "What
happens is that the employee might see lower pay growth for the next couple of
years, but they are benefiting from the lower cost of living."
Naturally, it's a whole different ball of wax if you have been
asked to take a job with more responsibilities and authority in
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Article from
CareerJournal Today – November 2005