National survey: 3 in 10 employees would take pay cuts or demotions to avoid a layoff

Three in 10 employees would be willing to take a pay cut or demotion to avoid being laid off, according to a national survey conducted by Resume Builder.

The study, which included 55 participants from New York State but none from Long Island, was conducted online in June among 1,250 U.S. workers to find out how a furlough would impact them; and to ask what compromises they would make to survive a workplace cut. Their biggest concerns: no longer being able to afford a place to live and not having health benefits.

One in eight workers said they had made "sacrifices" at their current workplace and would be willing to make others to remain employed.

"When facing a potential layoff, negotiating to retain your position, even if it involves a pay cut or longer hours, can provide valuable time to explore other options, such as seeking additional income or initiating a job search," said Stacie Haller, Resume Builder’s chief career adviser. "Staying employed while you evaluate your next steps can offer stability and a clearer path forward."

Of the 31% willing to accept a reduction in their pay, 28% said they would accept a 1% to 5% drop. Another 10% were open to a 16% to 20% decrease, and 8% were prepared to take a pay cut of more than 20%.

Respondents who would take a demotion numbered 32%, and 25% would work more hours without additional pay, and 20% would forgo certain benefits.

One in eight employees said they had made compromises to avoid the chopping block.

Of those who compromised, 17% took a pay cut, 16% are now working in a part-time or freelance capacity, 10% lost some benefits, and 9% took a demotion.

Workers said their biggest concern was about paying the rent or making mortgage payments, with 48% saying they would be very worried.

Losing benefits, such as health care, was a significant worry for 41% of those polled. Affording food was another major concern, with 40% being very worried.

Long Islander Stephanie Giunta, who was laid off from her job as a director of brand marketing in December 2022, said she couldn’t see herself doing any of the things in the survey to save her job — particularly taking a pay cut or demotion.

The 34-year-old Hauppauge resident and her husband have a 2½-year-old daughter and are expecting another child, and they own their home. Four months after Giunta’s furlough she got another job as a marketing director.

In "desperate economic times," Giunta said she could imagine someone trying to save their job in any way they can, but she said attempting that by offering concessions didn’t occur to her, and in hindsight that still wouldn’t have been an option.

"I didn’t think about that. I was very comfortable with my title and my salary, so that probably wouldn’t have been a consideration on my end," Giunta said. "Our cost of living is high, day care expenses are high, and the price of food is ridiculous — all these elements come into consideration."

To qualify for the study — conducted by the survey platform, Pollfish — participants were required to be over 18 and employed.