How to Make Up for a 20% Pay Cut: Tips and Advice for Downsized Employees

[Intrepid_Chef]

My FT employer has been mandated to make cuts. In order to avoid cutting one staff member, he's trimmed 8 hours off of 5 people's work week ... including me.

This means a 20 percent pay cut. At least those of us being bumped to 32 hours can keep our health coverage.

I've been in this job for 14 years. Every company that does what mine does is losing money ... it is an industry-wide problem.

The good news is I get 3 paychecks in May, 2 at the current rate, so I really won't start to feel this until June.

I crunched the numbers and I can make up the loss two ways:
* Get a part-time minimum wage job. I'd have to work 20 hours a week to make up the loss. Of course, who knows when I'd find time to work 20 hours on top of 32 ... especially when my schedule still involves odd hours.
OR
* Sell $2,400 a month in Pampered Chef

This is 8 parties a month, 2 a week. Right now, I am averaging 1-2 per month, and the vast majority are catalog shows.

I am also struggling with the decision to attend National Conference ... with this looming, it's hard to justify plunking $600 to $700 down on what could otherwise be put in savings and make up for a month of lost income. But if I am serious about taking it to the next level .... how can I not?

Advice and tips are most welcome.

 

[AlowayFamily]

Can you use the 8 hours you lost at your FT job and work PC during that time? That might be able to help you jump to the 8 shows a month you need.

 

[kearstin]

Unfortunately I can't say that I have any real advice for you. But, I can say that I feel your pain - in a big way! I found out on Friday that my job is being eliminated due to "budget cuts." The funny thing is that I'm the ONLY person at the hospital losing their job. If you read my other post from a while back (http://www.chefsuccess.com/f3/advice-going-pt-hobbyist-ft-warning-lengthy-post-33298/) you'll know that I don't, for even a second, believe that I'm losing my job because of the budget. Especially since they are replacing my position (Marketing & Development Specialist/Volunteer Servicees Coordinator) with a secretarial position that will be expected to perform "many of the same duties that I am currently performing."

Sorry for the hijack. Once I got started typing I couldn't stop myself!!!

I really do feel for you and am a big believer that everything happens for a reason. {{hugs}}

 

[janetupnorth]

I have a question for you...how is your employer cutting the hours? Is it daily or a whole day off? Is there any negotiation there?If your employer is cutting 8 hours, it is only fair that you work one less DAY a week. This means less gas, less travel and a WHOLE day to focus on PC or whatever else you fill in.If your employer is just cutting hours, yes you have insurance, but they are putting the same daily burden on you each day and you don't gain, only the employer.On the PC side, many people have bumped up that much...it is a matter of motivation and doing it.I personally do PC Hobby/Part-time...more so hobby! I never have a problem staying active, but also don't "kick it up". I find it easier to teach a class for Red Cross to have some income than work to do a show someday (sad I know). However, I am still keeping up my training, I'm going to the Regional Meeting and going to Conference to keep my knowledge up and still do PC to the best of my ability so it is there if God changes my life around a bit someday. (Remember you can write-off NC as training on taxes...that may help).For me, I couldn't replace my FT job with PC unless by some miracle because I get paid well for my FT job and I am the main income in our family. Go with what you LOVE since you have the chance and work to the best of your ability at it.

 

[Intrepid_Chef]

No hijack Kearstin ... I saw that thread and appreciate the reminder ... I think it has some very good insights I plan to apply! And I am sorry about what happened with your job but if I remember that thread correctly ... it was an awful place to be and your life is probably better for it.In my city there are 4 hospitals ... in the region, many more. Meanwhile, there is one big company that does what I do, which downsized heavily last year ... and all the others are 45 minutes to an hour's drive away. Again, downsizing in my line is an "industry-wide problem."They are seeing it as a 4-day week .... and it looks like my day off will be Fridays. So yes, less mileage, less wear and tear on my vehicle, and more time to do shows, which often schedule on Fridays.If they were to cut me to a 6 hour day, then yes, they would be the only ones to gain ... and good luck getting out of here in 6 hours, given the nature of the business!I am single and am the only wage-earner in my household. (I also have an unemployed roomate ... that's a whole 'nother issue which I don't care to debate.)My director asked me what I would need to leave my job and I told her ... she said this is what she was making before she had some life changes. So with directorship comes higher income. But I am not ready to be a director, because I still love what I do full-time ... and I need the benefits. But if "full time" is 2 shows a week then yes, I'm ready! I better be!

 

[Intrepid_Chef]

And Janet, I have decided that I almost HAVE to be at NC ... if only to meet you in person!

 

[buckeyefan08]

I'm not sure what advice to give...
I just know how you feel. DH got his hrs. cut too! He is down to 4 days a week, it's going to get tough fast! It's easier for me to kick it up a notch b/c I'm not the one working. I made it my goal to double my PC income starting in May and so far it has worked. Times are hard around here right now, try to book based on cheap and easy ways to cut costs in the kitchen. It has worked for me so far.
GOOD LUCK!

 

[susanr613]

Hi Di:

First, so sorry that you are losing out on income. Fortunately the hour reduction is a whole day, not bits and pieces of each day. This is a great opportunity to revv PC into high gear.

I also work full-time, and manage about 4-6 shows a month. I've noticed that when I really work the 3-2-1, my show count goes up. The great thing about PC is that your success is tied to your efforts, not someone else's decision (other than whether or not to host, of course).

So, think about how you can leverage your day away from your job:
- work the phones
- offer daytime or happy hour shows
- pamper offices and associations

Much success -

 

[chefann]

Di, I feel your pain. Luckily, being cut one day instead of a couple of hours per day works to your advantage. Book those Fridays solid, and work it! Heck, if you get into the right circles of people, you could even do 2 shows on some Fridays (a lunchtime show at an office or for work at home parents, and an evening "traditional" one). Remember, too, that as you do more shows, your show average will go up. I had that discussion with my Director when I lost my job. DH wanted me to do 10-12 shows a month, and my Director pointed out to me that doing 6-8 quality shows would probably be better, since I could focus more on each host as I was coaching. If you're still uncertain about attending conference, set yourself a pre-conference goal to help make up some of the money beforehand (like tell yourself you can only go if you do 4 live shows in May, with $1500 or more total sales). And make a pros and cons chart to help you see both sides of the decision. If you end up not going, you can still plan to go next year, or even to Leadership in January (all you'll need is 2 recruits so that you're a Future Director).{{{hugs!}}}

 

[janetupnorth]

And Janet, I have decided that I almost HAVE to be at NC ... if only to meet you in person!

Aww...shucks...don't know what I did to deserve that. :blushing:
But, if you come, hunt me down!

 

[wadesgirl]

I agree with everyone else, your business can be your lifeline during this issue. On a show average of $400-500, you would only have to do 4-5 shows a month to hit as much. I work full time and usually pull about 3-4 shows a month.

And you never know, this could be temporary. My last job did this and it only lasted for 2 weeks until they discovered that we got so far behind!

 

[Intrepid_Chef]

((Lisa)) things really stink in our particular community, don't they?Hmmmm ... I was already envisioning a lean May because I didn't know where I'd find time to do shows on weekends with two Relays. Now I have 3 more Fridays to book ... I did have a source of the money ... the tax rebate, and the extra paycheck in May ... but I like the idea of setting a goal. I might tweak it just a bit. Oh, and I do have to get around to repairing or replacing that pesky lawn mower .... grass in my front yard is literally a foot high!I'm envisioning doing calls during the day on Friday and shows at night ... this move probably won't give me more evenings to do calls, which stinks when I can't reach people during the day.Somehow, I am sensing it will all be OK ...

 

[Intrepid_Chef]

nd you never know, this could be temporary. My last job did this and it only lasted for 2 weeks until they discovered that we got so far behind!

Well, I don't see that happening, at least not that way. They are fully aware that the work that isn't being done will have to be done by someone and there's no way around it. But if one person decides they've had enough and decides to move on or retire early ... they probably will not be replaced. In theory, we all might get our hours back.The thing that really bites is that in December I was moved out of management. Rather than put me in one of the "key" areas, they put me in one where I am vulnerable to downsizing and put a recent college graduate in the "key" area. He is not being downsized, I am.

 

[buckeyefan08]

((Lisa)) things really stink in our particular community, don't they?

They Sure Do!!!
You are a hard worker, you'll be fine!

 

[Intrepid_Chef]

I just wanted to thank you all again for your kind words and support!

I found myself calling my leader of my previous product line, since she knows the area where I work, and is a pastor's wife. (Our ties go way back to when she worked in this area.) She had some amazing insight. She said she thinks the Lord wants me to remain positive, because others are uncomfortable and my response will be a witness to them.

Tonight, a collegue approached me about it and I found myself quoting a line from Kearsten's thread, "When God closes one door, He opens another, it's just the wait in the hallway that's uncomfortable."

Another friend (on the message board I moderate) has encouraged me to pursue a job change. She pointed out that my experience can translate easily into other opportunities. So tonight, I went home, checked the newspaper, and found a communications position at a university. I think my unique blend of experience as a writer and fund-raiser qualifies me for the position, and if not, there are others.

Anyway, I want to thank you all for helping me see the light at the end of the tunnel.

 

[legacypc46]

Ann is absolutely right about your show average going up and focusing on the quality of your shows (versus the total number).

There are a lot of consultants on here who have high show averages; some work outside jobs and/or have the full-time mommy gig going on as well. The key is to make the decision this is more than a hobby. (Making it your business, doesn't mean it still isn't fun! )

Maybe the door being opened is this one? :angel:

 

[Intrepid_Chef]

Oh, I completely agree. The first 5 shows of my career had an average of about $225. The last 5 shows I've had had an average of over $500! Of course, there WAS that big show in there but still .... my last BOOK party closed at $500!One new dilemma .... I am job-hunting. Assuming one of these searches strikes gold (the one I found last night is a good match for my unique blend of skills) I would hate to take a vacation so soon after starting. But that is part of the game, I guess ...

 

[Kitchen Diva]

My FT employer has been mandated to make cuts. In order to avoid cutting one staff member, he's trimmed 8 hours off of 5 people's work week ... including me.

This means a 20 percent pay cut. At least those of us being bumped to 32 hours can keep our health coverage.

I've been in this job for 14 years. Every company that does what mine does is losing money ... it is an industry-wide problem.

The good news is I get 3 paychecks in May, 2 at the current rate, so I really won't start to feel this until June.

I crunched the numbers and I can make up the loss two ways:
* Get a part-time minimum wage job. I'd have to work 20 hours a week to make up the loss. Of course, who knows when I'd find time to work 20 hours on top of 32 ... especially when my schedule still involves odd hours.
OR
* Sell $2,400 a month in Pampered Chef

This is 8 parties a month, 2 a week. Right now, I am averaging 1-2 per month, and the vast majority are catalog shows.

I am also struggling with the decision to attend National Conference ... with this looming, it's hard to justify plunking $600 to $700 down on what could otherwise be put in savings and make up for a month of lost income. But if I am serious about taking it to the next level .... how can I not?

Advice and tips are most welcome.

I totally feel your pain. I lost my job in March and DH just lost his job today. It's the second job he's lost in 3 months. I have no idea what is going on with us, but my thoughts and prayers and empathy are certainly with you at this time. It seems like a lot of good people are under attack these days and I'm getting quite sick and tired of it. How come the icky, mean or evil people never seem to suffer so?

I'm sorry and hope that you can find PT work, or boost your PC schedule a bit.

Prayers are with you!

 

[Intrepid_Chef]

Kacey, I saw your thread and came to the same conclusion. I could not hang around the prayer request thread because it was breaking my heart ... you're right ... a high percentage of us are under attack! I think we need to pray protection and kick our businesses into high gear! At least we sell a product that people want even when times are tough!

 

[Kitchen Diva]

Kacey, I saw your thread and came to the same conclusion. I could not hang around the prayer request thread because it was breaking my heart ... you're right ... a high percentage of us are under attack! I think we need to pray protection and kick our businesses into high gear! At least we sell a product that people want even when times are tough!

Di- I truly hope that your calendar gets so full on Friday's that you have money shooting out of your ears!

I know what you mean about the prayer request thread breaking your heart. It saddens mine to even have to post there- but for some reason my family is in a season of growth and faith stretching...can't say it's been fun- but it has been memorable! LOL