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Wage Elasticity in the Current Market

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In this market conditions may dictate changing industries which may mean that even the most qualified individuals will need to accept a pay cut to transition to an  industry which offers long term stability.

An interesting corollary to this issue is: what is the wage elasticity for qualified job seekers who are looking to transition jobs within the same industry?

What are people seeing out there in regards to salaries when transitioning within the same industry? Should a qualified professional expect to make the same $ or prepare for a pay cut?  If so what % would be reasonable in this economy? 

 

Answers

Shane Patrick Connolly
Title: Chief of Staff
Company: Council District 10, City of San Jose
(Chief of Staff, Council District 10, City of San Jose) |

As someone seeking new opportunities, I've been listening in on a number of webinars with professional recruiters. What I've heard, in a fairly uniform fashion, is that those hiring candidates with expertise within their industry (or related) have not been eroding wage offers, nor should they as they'd be sending a message that the skills they are seeking are worth less to them now than they were previously. They advised those of us seeking work outside of our industries that there may be a 'buy-in' cost (ranging from roughly 0%-20% reduction in base pay, assuming the candidate was 'at market' in his/her previous position).

Mark Stokes
Title: CFO
Company: Private
(CFO, Private) |

I have seen companies expecting more for their dollar, but paying the same amount. That is, the comp hasn't gone down, but they are looking for more experience, better fit, etc. so it seems like they are driving to get their money's worth.

Those trying to "go cheap" are still getting what they pay for b/c the best people don't have to take lowball offers. I think most boards and exec teams get that.

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