alt Hacker NewsWhen they offer a package YOU ALWAYS TAKE IT. It means that layoffs are coming.
My friend's company offered a voluntary severance package to a bunch of employees. She was talking to one of her employees and she knew that he was going to get laid off if he didn't take the package but was unable to advise him. I think the voluntary severance was 2 years medical, 2 years of vesting, many months of pay, etc. But he decided not to take the offer and was laid off for a much worse package a few months later.
ALWAYS TAKE THE VOLUNTARY SEVERANCE.
Replies
It obviously depends on the specific amounts of the package as well as the timeline and personal impact of the upcoming layoffs (the latter of which you can’t know).
The company doesn’t necessarily want everyone to take the package, and they’re inevitably going to price the separation benefits such that some employees would end up better off taking it and others would end up better off not taking it.
Always? What I’ve seen is sometimes the buy out is no better than the current severance package. Might as well ride it out. The severance could in theory get worse over time but that doesn’t seem like a worthwhile reason to throw away your job. You’re also throwing away unemployment.
If you take it you're not eligible to unemployment. I think in this market, given the undefined length of employment searching at the moment, that's a major consideration.
That is a fantastic package; you'd have to be daft or blindly proud to not bite on that
Eh, the voluntary severance offered at Google in various European countries recently was less than the negotiated payout for mandatory layoffs. And most of the headcount from people who took it was backfilled, too.
At Google they did voluntary buyouts and gave managers BACKFILLs.
It wasn't a 'instead of layoffs' it was 'ok if you're burned out, here's your exit'.
Can you still get unemployment too?
Having been in a company for many years, that every so often had these packages, I disagree.
Yes, of course it means layoffs are coming. This isn't a conspiracy. The whole point of these packages is "We want people to leave. The more people who take the package, the fewer the number that is laid off."
If the package is going to only a small percentage of the company, then yes, it's a sign they'll get rid of you. When it's offered to such a large number, then it's just a lottery to see who'll lose their jobs. Like all lotteries, the chances of you being impacted are low (e.g. 10% was the max in my case).
Hah not always. I worked at a bank where they offered this and I applied and I was denied and told I was essential.
I have doubts that this is suitable as a generalized statement like that.
Ignoring specifics, the corp offers a package because they want you to take it. That means that you taking it is in their best interest.
It might also be in your own best interest, but it might also not be. That's something that needs to be evaluated on a case-by-case basis