Re-employment at a Reduced Salary Is Often Worse than Unemployment


Re-employment at a Reduced Salary Is Often Worse than Unemployment


The new Wage Protector® SALARYGAP® Benefit is designed to help fill the gap in salary from re-employment.


Chicago, Illinois, August 18, 2016 – Workers, who become involuntarily unemployed and are later reemployed at a lower salary, typically face hardships more severe than the time between jobs. SALARYGAP® Partners LLC., an insurance product development company, has announced a new product to address this problem.


Unemployment is certainly no picnic.  It can be a very painful, isolating experience. Yet, workers who lose their jobs can qualify for unemployment insurance, a regular payment to help with the transition. This insurance ends once the individual gets a new job.


“After people deal with their involuntary dismissal, they are often faced with the harsh reality of earning less when they finally land another job,” explains Bill Graham, an architect of SALARYGAP® Wage Protector® insurance and a co-founder of SALARYGAP® Partners LLC. “You could go out and find another job, but if you are now bringing less home, it could likely turn your life upside down and be an extraordinary stressor on your family and your health.”


Research over the past 15 years reveals that reduced earnings after a worker is reemployed are potentially far more severe for workers and their families than the period in between jobs.1 Earning less money than the previous job makes it harder to accumulate savings for retirement and make major purchases. Economists have referred to the phenomenon of workers earning less money when they re-enter the workplace – even during economic expansions – as wage scarring.2


“It made perfect sense that we built the SALARYGAP® Wage Protector® insurance product to deal with this issue, as this is a problem affecting workers across the globe,” adds Graham.


The Great Recession of 2008 and years of off-shoring millions of jobs overseas to lower-wage workers have greatly contributed to unstable employment for wage-earners. However, economic instability is a constant threat for wage-earners. Consider that, while over half a million new businesses start each year, an almost equal amount close. In 2014, 514,332 new businesses were started; 548,159 closed; and 55,250 went bankrupt.3

“Even in the best scenario following a job loss, it could take months to find another similarly paying job,” adds SALARYGAP® Partners LLC. co-founder Bill Jolicoeur. “In the meantime, an insured person can use Monthly Benefits from this coverage to help pay any bill or loan and minimize dependence on their savings.”


Workers with more than 20 years of experience in a prior job earn 20% less in their new jobs.4

SALARYGAP® Wage Protector® is designed to help provide income protection for employees of a business and members of an association. It allows employees and members to purchase a Monthly Benefit to protect them from income shortfalls due to qualified Disability, Involuntary Unemployment or a Salary Gap following Involuntary Unemployment due to reemployment at a reduced salary of 15% or more. The Monthly Benefits can be used at the policyholder’s discretion to cover any payment obligations such as monthly insurance premiums, auto or lease payments, medical expenses, utility bills, mortgage principal, interest and taxes. The Monthly Benefit is subject to term and income restrictions.


For more information, please contact SALARYGAP® Partners’ President, Bill Jolicoeur, via email at


Bill Jolicoeur, President



1 Lori G. Kletzer, “Why the U.S. Needs Wage Insurance,” Harvard Business Review,  January 25, 2016, (accessed June 11, 2016).
2 Ben Leubsdorf, “The Recession’s Economic Trauma Has Left Enduring Scars,” The Wall Street Journal, May 9, 2016, (accessed June 11, 2016).
3 (accessed June 11, 2016).
4 “Fact Sheet: Improving Economic Security by Strengthening and Modernizing the Unemployment Insurance System,”
January 16, 2016, (accessed June 11, 2016).