Furlough or paycut?

[angelcollector1]

My company has to cut expenses... they are offering 2 options to choose from -
1. 10% cut in pay for the next 6 months - that would equal about $1850 gross. However they are giving anyone who takes this option 6 additional paid days off to use whenever you choose before the end of the year.

2. 13 days furlough over the next 6 months... the stipulation is that you have to take them in full week 5 day increments, therefore in the week where only 3 of the days would be furlough you would have to take 2 days vacation or personal time (only given 2 personal days a year) or they would be unpaid. They do not have to be taken all together, but over the 6 month time frame.

I will say the one big issue with the furlough option is that my not being at work or being able to do work from home unpaid during that time will greatly impact my book of business. 1 week out of work would mean I could not grow my business or maintain contact with my candidates or my clients (I recruit). No one will pick up the slack and cover while I'm off.

A couple of more things to think about - losing the 10% of my salary will stretch my budget where there is no leftover cash after paying for necessity expenses... and we will have to find a way to cut our grocery bill. The cost of gas for me to commute to work at this point is approx. $210 a month and $60 in tolls.

Which would you choose and why?

[MyTwoAs]

Will the pay cut definitely be given back to you in 6 months? I tend to think that that is the better option because you won't lose that important contact with your client base. Is there a commission structure to your job? Since you mention growing your business, would expanding your client base make up for that pay cut?

[angelcollector1]

If the business turns around, it's totally based on the economy- we will be given our salary back at the end of the 6 months, and if things don't turn around then the furloughs or salary cuts will stay in place.
I do make commission and depending on how many candidates I recruit and place for a fee I can make up the $ in commission, the typical # of placements that can be made in a month are 3, however since the beginning of December the people in my department have only made 1 each total in the past 3 months.

[Logan's Mom]

Well, I would actually take the furlough being that you would save money in gas and tolls. I can't really determine the impact it would have on you client base, so that is a tough call. Is there anyway to "work from home" on that furlough so you can keep in touch with the clients and therefore the commisions while reducing the cost of commuting to the office?

[angelcollector1]

As far as working for home while on furlough-
It is against the law to work while on furlough and our company WILL NOT allow us access to email or our database or to contact our clients or candidates while on furlough.

[Smithie]

I'd be looking for a new job. This place is going down the tubes.

But meanwhile, I'd take the 10% pay cut if I were in a commission-based, client-focused field and thought I might not be able to find more stable job in a few months of looking (and who DOESN'T think that, these days?)