(UPDATE) WHAT?!? Can you say that again

  • DJZ77

    Posts: 381

    Dec 12, 2008 8:31 PM GMT
    ... is what I said to my supervisor this morning when he told me I was chosen to be offered a company voluntary resignment package. So now I have a little dilemma and was hoping on getting some advice from fellow RJ'ers.

    So here's the deal, I now have 45 days to decide if I want to resign or keep my job. The package is somewhat decent, they are basically giving me about 65% of my total yearly salary, which I could totally live off of for a good 6 to 8 months, not including my savings. If the economy were great and I was sure I could get another job in no time flat, I would not hesitate on taking the package. Again, this is completely voluntary on my part and I have been told that staying does not guarantee I will be safe from any future cuts, but that this offer will never be offered to me again. On one hand, it's cool that I still have a job, but I can't get over the fact that I could have just been fired today and not given anything... HELP!!! What would YOU do in my spot?? I'd just like to know what the majority would do if you were put in this situation.

    -Damian
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    Dec 12, 2008 8:32 PM GMT
    I'd try to stay employed at all costs. The economy is in the shitter and layoffs are happening every single day. I'd rather not do a job search in this market.
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    Dec 12, 2008 8:36 PM GMT


    I've been that there and done that! Now aside from your 65% payout, shouldn't they be giving you about 1,000.00 for every year of service?
    Find out if you can take part of that package now and the rest in January so it will be spread over two tax years.

    If you can throw the bulk into RRSPs that are cash-able, then you can pull from it in small chunks, and pay less tax especially if you can deduct the RRSP deposit (from the payout) on your taxes!

    -Doug
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    Dec 12, 2008 8:43 PM GMT
    I'd take the offer, plenty of other companies will be headed to lay-off scenarios and possibly similar offers as yours in the coming months....

    There's no reason to think that the 1st Quarter of next year won't see a continuation of bleak times. Some economist are anticipating (and I said this myself a month ago) an impending economic deflation.
    I wish you luck!

  • DJZ77

    Posts: 381

    Dec 12, 2008 9:01 PM GMT
    Guys... Thanks for the feedback!

    Doug - Yes, they are giving me 1,000 per year employed, should I decide to take the package.
  • EricLA

    Posts: 3461

    Dec 12, 2008 10:46 PM GMT
    Wow, what a dilemma. I guess it depends on what field you're in and whether it's doing well in your area. But you say you're not sure you could get a job. 6-8 months is a pretty decent package.

    You might want to track down some HR organization (maybe even a temp firm might have some advice) about how things are going and what a good course of action is to take.
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    Dec 12, 2008 10:51 PM GMT
    Consider that if you take the package, you'll be paying far more per month for health insurance coverage via Cobra vs. your current contribution (if you're in a typical situation) and that's only for the time the Cobra lasts (a year, I think) and after that you'll probably opt out of having health insurance because of the prohibitive cost. That 65% of your salary will probably not go as far as you think if you even decide to take Cobra.

    Personally, I'd hang out on the job longer. This is no time to be caught with your pants down.
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    Dec 12, 2008 10:55 PM GMT
    ould continue working. Its a steady paycheck. If you take the package you will be getting a limited salary and you dont know when you will get another job. I was laid off and it took me 3 months to find a job. I know others that have been laid off much longer.
  • coolarmydude

    Posts: 9190

    Dec 12, 2008 11:47 PM GMT
    gymguy1 said, "Its a steady paycheck."


    Ummm, it's not a steady paycheck when your job isn't guaranteed after the voluntary resignment package meets its deadline.


    I would take the severence, but don't let the company know until the deadline arrives. I would also start looking for a job...the sooner the better.

    What's your job/field/industry? This would be the biggest factor in what you should do. If it's a shrinking field because of the latest economic downturn, you might be better off rolling the dice with your current job.

    But like I said, check far and wide as early as possible for a new job because that will increase your chances for a new job. Also, how long have you been working in this field?

    Good luck.

    P.S. Start pinching pennies if you haven't already.
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    Dec 12, 2008 11:51 PM GMT
    I would SERIOUSLY do some research on the industry you're in and how the employment rate is for that industry in your city. Or if you've been considering relocating (NYC is not the cheapest city to live in!) I'd research that scenario as well!!!

    That IS a dilemma if there's ever been one, DAMN!!! GOOD LUCK man and keep us posted!
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    Dec 12, 2008 11:53 PM GMT
    The company where I used to work through went through several waves of these VRIFs (followed by IRIFs, if enough people didn't take the package.) I was never offered one (dammit). The people who I knew that took the package had mostly been planning to move on anyway.

    A couple of my friends took the package and used it to start their own businesses - complete lifestyle changes. As it happened, both of those businesses only lasted about four or five years, but they're still glad that they did it.
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    Dec 13, 2008 12:29 AM GMT
    I had an offer like yours once from the pharmaceutical company I worked for - when it was being acquired by Roche, back in the mid 90's. I gave it a lot of thought - as I'm sure you are doing. I had been Director of Marketing for years and was bummed that I would lose that job to a Roche employee - and I'd have to work under him. I took the buy out (which for me included stock - a generous package). I then carefully invested this capital in a good start up - which three years later was sold to Yahoo. I was then given another hurdle: A good job at Yahoo or two blocks of Yahoo stock - then trading for $28. per share. I took the stock deal. I then unloaded the stock over the years - and I'm glad I did - before it sunk to a five year low - when Jerry Yang rejected a deal that had a +40 P/E.

    Sorry to digress, but to me - the handwriting is on the wall, so to speak, at your present company. I'd consider strongly that if you don't take this buy out offer, you could stay on - as some here have suggested - but at any time in the new year, there could be lay offs - and you'd be out without much of a package at all - wishing you'd taken the buy out. Yes, you'll have to start a good career search, in a cooler market - but it sounds like you're going to be doing that anyway - so why not start now - before you're in the pool with a lot more of your present co-workers?
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    Dec 13, 2008 1:15 AM GMT
    I'd mostly agree with JockBod. The chances of this progressing and layoffs getting worse are strong here. Look out for yourself. Take the next 45 days to see what you can find out, and I'd probably take it at that time. Also see if you can negotiate to see if you can stay on their health care system. Additionally, count the days well: if 45 days stretches into February, you get an extra month on their health care.

    As one who's been laid off/taken packages six times, I can say that I've seen a few companies go through this, and it's most likely just going to get worse. Take care of yourself.
  • DJZ77

    Posts: 381

    Dec 13, 2008 3:44 AM GMT
    Thanks for the advice guys... This has really been eating away at me all day. I keep telling myself... "At least I still have my job", in hopes of trying to stay optomistic, but for how long? For those who asked and sorry for not disclosing in the first place, I work for a major political magazine in their circulation dept.

    McGayConsider that if you take the package, you'll be paying far more per month for health insurance coverage via Cobra vs. your current contribution
    Damn! I hadn't even thought about that. Time to re-calculate things.

    coolarmydudeI would also start looking for a job...the sooner the better.
    Already have and that's what has me worried. I didn't find much, but then again it could be due to it being end of year. As for the penny pinching... so gonna be hard for me, I love to splurge on things and that will be the death of me most likely icon_eek.gif. We'll see what the new year brings. *crossing fingers*

    Jockbod48I had an offer like yours once from the pharmaceutical company I worked for - when it was being acquired by Roche, back in the mid 90's.


    Oh wow, I know who you're talking about. I actually started out in pharmaceutical printing right out of college and Hoffman-La Roche was one of my accounts. Yeah, they're back to just 'Roche'... go figure. I'm not scared of going out and starting from scratch if I need to, I've done it before. As previously stated, I'm just worried about the lack of job posts.

    A1972guyI would SERIOUSLY do some research on the industry you're in and how the employment rate is for that industry in your city. Or if you've been considering relocating (NYC is not the cheapest city to live in!) I'd research that scenario as well!!!


    The magazine industry is not really doing all that well. Most every magazine I know of and have connections at have had major cuts. People are not buying or subscribing as much as before and the rate base just keeps going lower and lower. So that's why I wasn't all that much surprised, caught off guard yes, but not surprised. Relocation... I'd really rather not, but if need be, I very well may have to consider it an option.

    matt45710As one who's been laid off/taken packages six times, I can say that I've seen a few companies go through this, and it's most likely just going to get worse. Take care of yourself.


    Wow, six times... sorry to hear that, now I feel bad. I totally agree with you, I have a feeling things are going to get worse for everyone.

    I need a beer... wait no, that would require me to go out.. like to a bar and spend... money... damn! Nevermind icon_evil.gif
  • DJZ77

    Posts: 381

    Dec 16, 2008 9:33 PM GMT
    UPDATE...

    So I actually have some good news. As I've already mentioned to some fellow RJ'ers... Monday morning I came to work and my boss pulls me into his office as soon as I walk in. He starts off by asking if I was ok and if I had given any thought on taking the package. I told him I needed more time to think about it and I needed to carefully review my options. That is when he tells me that he's not really supposed to say anything, but that my name was just thrown into the mix to meet some criteria, something about needing a certain amount of people and age range. So in his words... "We don't want you to go anywhere, we still have work for you here". So yay, a huge weight has been lifted from off of my shoulders... Thanks to all of you for hearing me out, offering advice and just letting me vent!

    You guys ROCK!

    -D
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    Dec 17, 2008 1:58 AM GMT


    HAH!
    WOO-HOO!! ....guess Uncle Henry's getting that powder-blue knit leisure suit after all.