Stay Calm and Professional

• When asked to take a reduction in pay, it can be easy to fall into the trap of letting emotions and personal sentiment take control. When you first hear the news, take a deep breath, pause and wait for your employer to speak. Suggest postponing the discussion until tomorrow so you can gather your thoughts in an organized fashion. Avoid talking about your personal financial woes and yelling -- these will only serve to weaken your position.
  
  

Inquire About the Catalyst for the Request

• Although it may seem like a personal affront to have your pay reduced, it may have been the absolute last thing your employer wanted to do. Ask questions about the company and its financial performance so you can better understand the reason for this request. Your company may not have escaped the claws of the tough economic environment and may have been faced with cutting head count or asking existing employees to take a reduction in pay to keep the company afloat.
  
  

Illustrate Your Value to the Company

• Take an honest inventory of your contributions to the company and your recent performance in the workplace. If you have done things of great value, especially in the past year, you will want to share these with your employer. Focus more on recent accomplishments versus things you did years ago. This is also a good time to assess if you really have been pulling your weight around the office and have been delivering value.
  
  

Counter by Declining and Asking to Take on More Responsibility

• As in most negotiations, accepting the first offer at face value is not good practice. Politely decline to take a reduction in pay and present new responsibilities and tasks that you will be glad to take on. Suggest a performance-based pay structure where you can earn more based on hitting certain numbers for specific projects you are working on or if the company as a whole returns to a certain level of profitability. You may also be able to request additional vacation time or flexible working hours as part of these negotiations.
  
  

Accept and Move Forward

• If negotiations fail and a reduction in pay is inevitable, accept this new reality. You may realize how much you enjoy the actual work you do, the proximity to home or even the people you work with. There are many positives in a workplace versus simply a paycheck. Focusing on the benefits of your job can offset the frustration of a smaller paycheck.
  
  

Consider New Employment

• The reduction in pay may provide the perfect opportunity to assess your career and your future. If you feel that the pay cut was related to how the company values your time versus a broader economic catalyst, start exploring other job options or even consider going into business for yourself.