Senior agency leaders, laid off in an environment of stubbornly low advertising spend, should be prepared to take a pay cut when seeking the next role, according to recruiters.
Organisational down-sizing and strategic shifts, seeing companies streamline teams and refocus on core products and services, have particularly affected leadership roles.
Recruitment agency iknowho has seen senior candidates taking pay cuts of 10-15%.
But while it’s tempting to take a smaller package, recruiters suggest this should only be done if there is a trade-off.
“Better work balance or broadening experience to add new skills or aligning more with their personal passions are good trade offs,” iknowho lead talent partner Sheryn Small told AdNews.
“Otherwise the step back in salary could lead to feeling undervalued in the long term.”
As candidates mature, there is a point where remuneration becomes less of a driver and being happy with your reporting lines, role, flexibility and overall well-being takes over, DMCG Global executive partner Simon Hadfield said.
Candidate shortages over the last three years saw salaries creep to unprecedented levels, but budget constraints saw salaries flatline toward the end of 2023.
Many companies are contending with budget constraints, which are influencing the salaries they can offer, Aquent Australia talent specialist Kate Verran said.
“Alongside organisational restructures, we've noticed the introduction of salary bandings and increased discussions around gender pay parity, which is improving transparency in remuneration within some organisations,” Verran said.
Leaders can review what the market is paying in real time with Aquent’s salary comparison tool Compare My Salary.
Understanding how a candidate's previous salary compares to current market rates can help, Aquent Australia senior talent agency Jimmy Sutton said.
“Candidates shouldn’t devalue their skills but it’s balancing that with their financial situation and how long they’ve been out of work,” Sutton said.
“For example, a head of digital salary in our latest guide ranges from $150-220k + Super.
“So, if someone’s been sitting on a $190k base they’re not undervaluing themselves by dropping to $170k. If that’s affordable for their cost of living, then it's worth making that compromise to get a foot back in the door and build back up towards $200k.
“The net widens the longer someone’s out of work. If it’s getting to a critical point, you may need to make bigger compromises to get back on track.”
Expecting to earn what talent was previously on in the market right now might price them out of the running, Creative Natives senior design and creative recruiter Mikhaila Warburton said.
“So be prepared and have your 3 w’s - wish, want, walk number and know what your freelance rate vs perm salary would be,” Warburton said.
“Advice is to keep your head up, be open, get visible, use your network and lean on experts to help you position yourself. The best career opportunity could be just around the corner.”
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