Preference: Layoff risk or Certain Paycut?

[ksluis62]

I'd go with the chance of layoff, with the same pay. I'm in an industry (computer systems consulting & software development), where telecommuting is increasingly an option. So if I can't find a job locally, there's a reasonable chance I can find a job elsewhere, and not have to move the family.

[disneysteve]

If I had a prediction, I would have thought 80-90% would have taken the "safer" route and opted for a paycut.

You need to keep in mind that a great many people (including folks here, though in smaller numbers) live paycheck to paycheck. A 20% pay cut would be devastating. Even most folks who aren't living paycheck to paycheck couldn't handle a 20% drop in income. They'd rather take the 90% chance that they get to keep their job instead of the 100% certainty that they'd be unable to pay their bills.

[Scanner]

Disneysteve,

Good point. . .also. . .I am surprised not many people voiced this (this wouldn't reflect in the poll raw numbers but is rather qualitatitive) but my wife would vote 20% paycut so she didn't have to see her co-workers, who she has some amount of affection for, lose their jobs.

So. . .I wanted to see how much it was about you or the "collective." ( I guess this is an unaffectionate bunch, LOL )

I think the poll also indicates by it being higher than I predicted that people tend to think of themselves (no judgment - as Maat notes, the employer is thinking of themselves in this capitalistic world).

Again, I still remain surprised.

And yes, a 20% paycut is uncomfortable but not unworkable. If you are making $1000/week and you drop to $800/week, okay you are perhaps dipping into savings of $200/week (if you live paycheck to paycheck and won't cut cable, phone, internet, recreation). However, lose your job entirely and you are dipping into your EF $1000/week (minus unemployment). . .which do you think will run out quicker?