Ask to take a pay cut

jakestevens81

Hi all, just need a small bit of advice I currently work in a small acounting practice in the North East. I was called into my annual review yesterday, and was asked to take a 10% pay cut, which seemed harsh but in current climate I thought I better accept. It was only when I talked to my co workers I found out that I was the only one asked to take a pay cut. By the way I'm the only qualified accountant in the practice. (other that the partners) What do you think I should do

censuspro

Sine you are the only qualified then you are the highest paid and probably their most expensive overhead. Do you keep a record of how much you are billing? It's very useful in your annual review if you can show how much you have billed for the firm and you can argue your case as to how valuable you are to the practice.

On the flip side maybe you're not billing as much as you should be? A rough indicator is about 3 times your salary, if your not invoicing this much for the firm then they may not be making as much money out of you as they would like and maybe thats why they asked you to take a pay cut.

You can also make other suggestions to easen the burden for example you could get your firm to pay your CPD or annual subs.

My advice is to accept the pay cut, keep a record of how much you're billing for the practice and in the mean time browse the jobs market. A newly qualified accountant in Dublin earns between €45K - €50K.

jakestevens81

Thanks for the response I currently invoice around 140K and my salary is 36K so I think I'm covering myself well.

boredatwork82

Take the pay cut, unless you fancy been on the dole. I know a few accountants who can't get work, in Dublin, Midlands and Midwest.

Kinetic^

Take the say cut and stay working,rather then walking the dole queue.Harsh I know but it is the reality of how bad things are these days.

jakestevens81

Ok thanks for replies, I went and talk to them again but no go so I'll have to stick with it, hopefully I haven't biten of more than I can chew. (Ps maybe I should have mentioned that we are also taking on another qualified accountant, so things cant be that bad.

Kinetic^

I think if it were to really annoy you,then take a look at the job sites.There ain't much out there atm and I'm dreading looking for work soon as my contract will be up in April.

Evertonia

How many years experience do you have? We get paid little enough when on a training contract. You should find out the reasons for pay cut. Personally i'd rather work a couple of hours extra a week than have a pay cut. When you go looking for a job they always ask what you are currently on. The less you are currently on then the less they will offer you.

jakestevens81

I have currently 6 years in practice and 1.5 before that as a accountant assistant in industry. I feel like I'm been exploited because I'm qualified. I have to take a 10% paycut, which will save the practice 1% of overall salary costs, I could accept it, if everyone was taking the same.

Evertonia

Do you know how much your hourly charge out rate for fees?

jnh

if your on 36k and billing 140k there should be no need to take a pay cut unless a lot of clients arent paying or going out of business in the next year. current times can be also an excuse just to cut wages.

Evertonia

This is easy way out for your bosses of cutting costs. They should be trying to make office more efficient instead of cutting your wages. By cutting your wages they are not dealing with issue of increasing efficiency. If they think organisation is efficient enough, then they shouldn't be asking you for pay cut.

P.S. What qualification do you have and how long do you have it?

jakestevens81

I don't know what they charge out, but I know I don't cost them too much, I have vast knowlwdge in Sage Commerical & accounts production, know Sage Line 50 and Instant ok, Know the paye/Prsi system very well, know Rct, Vat CT & income tax very well, If I was to say I have a weakeness it would be in the area of pensions and deferred tax.


I feel like I am made take a cut cause I'm on the highest salary but hey I was the one who was studying every May & June Bank Holiday.

jakestevens81

Sorry I hold a Bus Degree & ACCA qualification

Kinetic^

Sorry I've only just seen that you're the only one taking a pay cut. That's a load of crap tbh.

swanvill

Sorry to hear about the pay cut, take it on the chin and look for something more better paid while you are with them.
Or if you like practice why not look to get your practicing cert and head out on your own once you have it but before you go consider poaching some clients that you have a good relationship with it is difficult to do but it will enable you to get revenge and who knows you could turn your €36k salary into fees of €100k +

Remember revenge is a dish best served cold

manafana

I think a paycut would be fair but not till mid way through year as we are still busy right now fees are down 10-20% and overtime is been cut down, but moneys still coming in and profits are been made.
I know are firm has cash as they planned a new building but didnt go ahead with it, im willing to take a 5% cut but not a 10% considering we are still busy right now. Thing with me is im doing less client work but alot of work for managers partners to streamline their work.

Aidric

Tough break, I've taken a 5% pay cut since last November and given the way things are going one has to be happy to be in a job right now.

LoveDucati2

Thats a terrible salary for someone with your experience. I was earning 40k in industry during my 2nd year exams. You must be an awful negotiator to put up with that and then let them take more off you.

You can't disagree with them now. You had one chance. Fnd out how much the new boy is getting on the QT and compare your experiences.

I would be taking a half day on Wednesdays from now on in return for your 10% cut.

BABYDOLL

Hi,
The paycut is a load of nonsense, too many employers are jumping on the bandwagon because they can get away with it! I think it is totally unreasonable as you are the only one getting it. Have you a contract? I would simply refuse... your salary is already below average for a qualified accountant. I know some finalists who earn 20k more admittedly thats in industry in Dublin, but they are not even qualified. speak to some local recruiters & see what they think they would have a better idea of the vacancies & salaries in your area.
think of all the time you spent slaving away to qualify & thats the thanks you get... Time to get tough!:o
Best of luck.

kluivert

I have to agree with Kinetic.

It should be a pay cut across the board or none at all.

My advice is to start looking for a new job while you still have a job, they say it is easier to get a job when you already have one.

Plodman

jakestevens81 wrote: »

Sorry I hold a Bus Degree & ACCA qualification

Hi jakestevens81

I too had to take a 10% pay cut. I am only part qualified ACCA but my salary in industry is 50K. You are being s*****d

byrne0f56789

Ask for something in return for the pay cut. Say that you are annoyed at being the only person that is taking the strain for the entire practice. Did you sign anything? If not, then push to get something in return or reject the offer. They will not sack you 1) the don't want the word on the street to be that they are laying off workers 2) you are giving them a great return on your labour.

However, I know that accounting firms are going to be really squeezed particularly if they deal with a lot of SMEs.

jakestevens81

Hi All,

Just to give you an update on current situation, I went back to my boss told him I wasn't happy, He listen but didn't care. The whole practice are now on a 4.5day a week with everyone taking a 10%cut in their wages. They have deferred my additional pay cut until September.