Is there more to work than money?

For most people, the extrinsic reward of money is the main reason we work. There is no harm in this at all. Salaries put roofs over our heads and food on our tables; they drive the entire economy. It’s natural to want as high a salary as possible.

However, almost everyone has other motivators besides, and often over and above, financial ones. For an in-depth look at the different between extrinsic motivators (including, but not limited to, money) and intrinsic motivators, see Intrinsic Motivation.

Sometimes, the strength of these non-financial motivators, when weighed against our current financial situation, see us contemplating a career move that appears counter-intuitive; reducing our own salary. Here, we explore the rationales behind making a decision like this, as well as the considerations involved in making this move.

Shouldn’t my salary keep increasing?

There are various approaches to how salary might play out over the course of a career.

DevOps Engineer Mahesh typifies many people’s approach when he takes his current salary as a baseline against which to compare other opportunities.

Assuming he sticks with this approach, Mahesh’s salary will tend to continue to increase over the course of his career, at least to the extent that he is in control of it. While a major economic shock could force him to reconsider, Mahesh’s own approach is only to consider opportunities paying the same or more than his current role.

Operations Lead Rhiannon, however, takes a different approach.

In this reading, while her salary might continue to rise through the early years of her career, Rhiannon (and others like her) will reach a threshold where their salary covers their living costs comfortably, and from there other considerations take on greater importance. In other words, above a certain salary threshold, salary diminishes in importance as a consideration, and could very feasibly plateau or even fall over time.

Every individual’s reasoning on this front will be unique, as will the exact threshold for any given person. Factors like the arrival of children could massively raise the minimum salary threshold; then, when those children fly the nest, it could dramatically lower it again. The important thing to note here is that, if you have found yourself considering a position paying below what you’re currently earning of late, you are far from unusual and there are sound, rational reasons to consider taking that pay cut.

Job satisfaction and salary

The balancing act between those reasons and the option of higher-paying work is often portrayed, simplistically, as a trade-off between job satisfaction and salary. It isn’t necessarily the case, however, that these two need be diametrically opposed.

For example, UX Designer Jakub found that moving to a better-paid position increased his engagement and satisfaction in his own work.

Similarly, Chief Data Scientist trusts that there is a correlation between her own engagement in her work and her salary.

Perhaps, then, “job satisfaction” is too broad a term to encapsulate the complex set of considerations that might be weighed against the prospect of a higher pay cheque. There is clearly no reason why high salaries and fulfilling work shouldn’t be correlated.

Reasons to take a pay cut

Factors that might, however, come into the equation include those related to career growth, improving work-life balance, and finding work that more closely matches your personal values.

For example, start-ups typically pay lower salaries than larger, more established companies, but founder and COO Lucy found that she learned much more quickly in this environment.

Similarly, CTO Marta prioritised work-life balance over seniority after suffering from burnout.

While it’s not spelled out here, such a decision is likely not to have been the best-paid option.

Taking a pay cut

That said, however good our reasons are for considering a pay cut, it’s not an easy thing to do. There are a great number of practical considerations to consider, as outlined by VP of Engineering Claire.

If these practical considerations can be dealt with, however, decoupling the value we derive from our work from the salary we are paid for it can be a hugely liberating step, as Head of Product Maria found.

Ultimately, the decision over whether or not to take a pay cut is a difficult one that rests with individuals, and is entirely dependent on their circumstances and current life priorities. If, however, your gut is telling you it’s the right step for you and you can bear the financial pain, taking a pay cut can be an enormously rewarding step over the long run.