The recession is something which keeps on fluctuating from time to time, therefore to keep up with the market, companies tend to cut down their expenditures.
The salary freeze is one of them and this step is taken after a lot of consideration and thought process that goes into it. Yet it is somehow a better option than losing a job itself.
Most of the time salary freeze is a temporary phenomenon that companies proceed with. This could be a frustrating and painful process for any employee, but one need to deal with certain situations like these. So it is important to know the steps to manage such situations.
15 Ways to Cope With Wage Freeze:
1. Know the reason:
Be informed about the reasons of this salary freeze as to what are the circumstances a company has, to take such steps. Was it the last resort to find the right solution or it was just a panic call for a company.
A right and complete information will provide you the insight of the true scenario and will give you enough time to plan for ahead. Whether it is the time to stay in this company or you need to look for another job, it can only happen with timely information.
2. Be aware of the time frame:
Generally, a salary freeze is a temporary scenario as it depends on the market reaction. If the market is under short time pressure then it could be for a shorter period of time. Talk to your employer about the time duration for the salary freeze.
Is it for a month, a few months or a year? Knowing the right time frame will give you a clear understanding of the situation and will help you deal with it. If you find that this could be a long term thing then you can easily plan for your further steps.
3. Don’t take it personally:
Another important factor is to understand that the employer does not hold any grudges against you for this. It is merely a company’s process under which all the employees are part of.
Therefore, know that it is a way with which a company ensures that everyone gets to keep their job and in these crucial times having a job is extremely important. It is important to be a part of a team and function as a team, rather than thinking only for self.
4. Look for non-monetary benefits:
In situations of a salary freeze, talk to your HR team and see if there could be an alternative to the money and see if you can leverage other benefits which are non-monetary in nature.
For Example, an opportunity to work from home or if you can have extended leaves when required in an emergency. Also, some other form of recognition and reward will also be beneficial for further ahead as this will reflect in when you will be applying for jobs in the future.
5. Rework your financial plan:
With salary freeze, all your savings and investment plans will take a major shift, hence, ensure to rework on your financial strategy. Talk to your financial advisor and learn how you can keep up with your monthly investments without losing out too much on it.
Know what are the necessary action you can take for your funds that you might be saving from years.
6. Be patient during salary freeze:
Patience is not only the virtue but an asset to deal with such situations. Rather than panicking on the issue of a salary freeze, better to give time and think how to deal with it.
Patience will help you analyze the situation clearly and will allow making the necessary plans for it.
7. Cut down your expenditures:
Take a step back and list out all your expenditures. See what is important and necessary and what all you can give up easily.
For Example, if you are spending too much money on shopping or on extravagant luxuries, it is better to cut it down for the time being. Adjust your spending with what you have.
See if there is something that you are planning to buy if you can delay the purchase or can substitute with something else.
8. Find ways to help the employer:
Be a part of the team and help your employer to save the extra money spent on the company. Take charge and see how you can help save the company’s money.
For Example, sit with your HR team and figure out ways for cost-cutting areas, like you can take a person for work from the home facility or can tell them to get discounted bus passes to the employees rather than hiring the bus for pick and drop facility. Or you can suggest ways like to reduce the use of the coffee machine by the employees.
9. Enjoy the work you are doing:
It is definitely a difficult time to be in and one might feel bad for being paid less as to what they deserve. Nevertheless, see the bright side of the darkness and enjoy the work you are doing.
Keep up the enthusiasm in you and learn as much as you can as even a time this will teach you money management in quite an interesting way. You never know when you will get the advantage of the things you learn here.
10. Maintain your savings:
Do not hamper your saving funds to get that luxurious lifestyle. This is your important money to take care of and let this not be depreciated.
It is better to give up on your night outs for a few months rather than hurting your money for the future. Remember this is your retirement money or your emergency funds when you will be needing them most.
11. Be a part of the team:
The important thing is that salary freeze is affecting everyone in your company and you are not the only one under its influence. Hence, be a team player and know that your positive attitude will help cope all your team fellows.
Keep up your energy and inspire everyone around you, let not your personal negative thoughts seep into the momentum of the team.
12. Appreciate the best:
Be thankful that in crucial times like these you have a job in hand. Many big companies instead of choosing the option of salary freeze tend to fire their employees. This is still a better situation where you have the opportunity to earn money and do not have to hunt for a new job all over again.
Therefore, appreciate the best in this situation and try to make the best of it. Better to be employed rather than being unemployed.
13. Be motivated:
Remember that money is important and not essential to live a life. Enjoy the smaller things that are there in your life, give yourself some time and to your hobbies like painting, reading books etc.
These small things will keep you motivated and will provide you a fresher perspective towards life in general. Let not money solely dominate your mind and thoughts
14. Look for another job:
If you think after a lot of planning and understanding that things might not work out for the better in the future. Then it is good to search for a new job rather than getting stuck in a critical situation.
A timely exit is always a better idea to pursue. Getting another job while working is easier than looking for a job in tough times. Contact the people you know or talk to a head hunter, share your CV with them and let them know that you are looking for a job.
This will easily help to find a better job during this process.
15. A backup source of income:
Always ensure to look for an alternative source of income and prevent yourself from solely being dependent on your job for earning money. It could be a form of an investment of turning your hobby into a small-time business, always have multiple sources of money flowing, in this way you will always be financially independent and can easily keep up with your luxuries too.
If your part-time venture is successful then you can easily make it your full-time profession, freeing yourself with financial dependency.
These points will ensure to get through the tough times of salary freeze but rest assured that it is always a smaller phase to deal with. Keep yourself calm and patient and do not give up in this situation. Give your best shot, be a part of a team and see how you can contribute to your employer.
Once the salary freeze period is over and the company is back on track they might see your efforts and responsibility and can give you benefits ahead. Therefore, a good plan for long term benefits will reap better results than short-termed goals.