Money

How To Convince An Employer To Pay You Less Money

Since I made a big dent in my student loans, I could afford to make less money in a position that provided me with more opportunities to gain practical skills.

By Jordan Rothman on August 29, 2018 10:00 am

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Usually, when people think about their careers, they imagine that their salaries will increase over time.  And for the most part, this is true.  As people progress in their careers, they gain more experiences and learn valuable skills.  This usually translates into higher salaries, since employers need to pay more for employees who have additional skills.

However, sometimes, you will want to enter a field that pays a lot less money than you previously earned.  Oftentimes, when people take government jobs or clerkships, they are paid much less money than they earned in the private sector.  Furthermore, as I discussed in prior articles, if you want to work at some smaller law firms, you usually will also need to take a pay cut.  Sometimes, it is advantageous to work a lower-paying job, since these gigs can provide you with invaluable experiences that can enable you to earn more money in the future.

Nevertheless, it can be difficult to convince employers that you are willing to accept less money than you earned in prior roles.  As previously mentioned in a few past articles, I took a huge pay cut when I started working at a smaller law firm after leaving Biglaw, and it was really awkward trying to convince my future boss that I would be fine making less money than I previously earned.  However, if you keep a few things in mind, you will have the smoothest time possible convincing a future boss that you are willing to earn less money for the chance to work certain jobs.

It is important to be frank with employers about your financial situation and how you will be fine earning less money.  Sometimes, employers that interviewed me asked how I would get by financially if I made less money.  This was especially true when I interviewed for jobs that required me to lease a car or make other life changes.  Other employers even asked me how I would manage my student debt if I made less money, since most people in the legal profession are very aware of the student loan struggles recent graduates face.

In order to answer financial questions posed to me by some employers, I related that I had already paid off much of my student debt through saving money while working in Biglaw.  Since I made a big dent in my student loans, I could afford to make less money in a position that provided me with more opportunities to gain practical skills.

If you have not made a dent in your student loans, you could explain to employers how income-driven repayment works, and how a decrease in income will accordingly equal a decrease in monthly student loan payments.  You’d be surprised at how many employers (or really, Baby Boomers in general) do not understand how income-driven repayment works!  Explaining this program will go a long way toward eliminating any fears employers may have that you will be unsatisfied with earning less money.

Along with being frank about finances, it is also important to stress why you are willing to earn less money to work certain kinds of jobs.  When interviewing with smaller law firms, I stressed how much I wanted to gain courtroom experience and take depositions at a smaller shop.  I usually started by discussing how I did not have the chance to gain practical litigation skills as an associate in Biglaw.  During interviews, I related how I never had the opportunity to argue motions or take depositions as a Biglaw associate, and how I was willing to earn less money to gain practical experiences.

It is always risky to trash your old gig during interviews, although on some level, you will always need to convince a prospective employer why your old job is not satisfying.  However, it is important to convey the benefits you seek to gain by making a career change so an employer knows that you will be gaining something even if you are making less money.

It is also critical to eliminate a prospective employer’s fear that you will leave a job after a brief period of time.  I tackled this issue by discussing how I wanted to make a name for myself at a smaller firm, bring in clients, and have a real shot at being a partner.  In Biglaw, it is almost impossible to develop a book of business and make partner, and I think prospective employers could see that developing your practice in a way not possible at larger firms is worth making less money.

In addition, as mentioned in a few prior articles, smaller firms usually provide origination bonuses to associates who bring in business.  When interviewing with smaller shops, I conveyed that I wanted the chance to originate clients at a smaller firm so I could both develop my practice and realize financial benefits I could not obtain at a larger firm.

All told, there are certain situations in your career in which you might need to convince an employer to pay you less money.  Whether you are moving to a smaller firm, or a accepting a position in government, you may have to convince a future boss to hire you in a role that pays you less money than the job you currently have.  However, if you are frank about finances, and are honest about your desire to work in a less-lucrative position, you should have few issues making a transition in your career.

Jordan Rothman is the founder of Student Debt Diaries, a personal finance website discussing how he paid off all $197,890.20 of his college and law school student loans over 46 months of his late 20s. You can reach him at [email protected].