Sooner or later you’re going to face this new workplace reality – the give back. It goes something like this:
Your boss or client says: “You’ve been doing great work, but… Times are tough. Margins have shrunk or disappeared. We can’t bill you out and make our desired profit margin based on our fixed costs, such as your salary. Would you consider: 1. Taking a pay cut and paying for your benefits; 2. Working fewer hours but doing the same amount of work; 3. Or, what do you propose?”
The company has several options if this conversation does not move forward: 1. Reducing hours; 2. Laying you off; 3. Outsourcing the work; 4. Off shoring the work; and 5. Other options.
You think and feel: “This isn’t fair.” “This isn’t right.” “This contravenes explicit and/or implicit promises made to our company.” However, this is real both for your company and for yourself. This is a very tough conversation for your client/boss and for you. But, you’ll be hearing much more over the next five years.
Life Lesson Earned: I’ve had a customer do it to me. “We want a $20/hr. reduction in your fees and oh-by-the-way do the same quality work.” Is this isolated? Not at all. Be ready for this question and have your value-proposition down rock solid.