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layoffs this year Limited to the hardest-hit sectors of the economy, especially technology. However, some industries could face layoffs if the economy slows further significantly in 2023. go.
Recent headlines from companies, Slash and burn approach Elon Musk Spokes On Twitter About Pain Some Leaders Are About To Publicly Disclose letter about layoffs Learn about the various benefits that apply to departing employees.
Layoffs are a matter of corporate reputation at a time when the American public ranks how companies treat their employees as the most important ESG issue, according to an annual poll conducted by Just Capital. Living wages, training and career advancement opportunities, worker safety, and diversity all factor into human capital metrics, but that doesn’t mean companies have at their disposal ways to reduce headcount. Just Capital founder Martin Whittaker said:
“My general philosophy about letting go is that you want to treat people well, because it all comes down to your brand.In today’s market, the employer’s brand is very important. ” consulting firm. “Retirees are still talking about your brand,” he said.
But there is a big problem. Many workers do not know how to evaluate separation agreements. In effect, they cannot distinguish between justified and unjustified layoffs. Here’s a career expert-recommended employer-employee interaction no one wants, but it’s a good idea to prepare ahead of time.
Do not sign anything when first notified
First, a very important piece of knowledge: You don’t have to sign a resignation letter. In fact, career coach Fiona Bryan’s number one piece of advice when receiving a layoff offer is not to sign the papers on the spot when you first get notified.
“It’s a really emotional time. Legally, your employer must tell you how long you’ll need to sign paperwork,” says professional career coach at Ask A Career Expert and The Bryan Group’s Senior Managing Partner Bryan said. “Receive and read the offer. Ideally, some will take it to an employment attorney and offer a short, free consultation.”
“It varies from company to company, but typically you have 21 days to sign a layoff offer,” says Toni, career services manager at FlexJobs, a membership-based recruiting site for remote and hybrid roles. says Frana.
“You can always negotiate a package,” said Andrew Challenger, senior vice president of outplacement firm Challenger Gray and Christmas. And he says employees are more likely to thrive in this environment, a situation in which many businesses are overhired in a slowing economy, unlike sudden and deep recessions like the Covid crash. “This is not panic. This is not a knife being dropped,” he said. Employees never have more leverage in post-retirement negotiations than when accepting a job offer, but “now is a better time than a time of great crisis,” he said.
Once you’ve had time to process the emotional, financial, and mental shifts layoffs bring, here’s how to know if your company’s layoff offer is a good one, and if it’s time to negotiate a better one. indicate.
How you receive your retirement benefits matters
As for severance pay, Bryan advises checking to see if your severance pay is a lump sum or if the company will keep your salary when you deposit the money into your account.
“Sometimes it’s better to take severance pay and find a new job if you’re being paid in a lump sum,” Brian said. Yes, so you can continue to list continued employment on your company resume.”
Bryan said you can say on your resume that you are employed by the company even if you are still receiving checks from the company. This is especially important if you are not employed and have active employment listed for some time.
How much should you expect
Most companies that offer severance pay are based on your tenure with the company. A general rule of thumb, Frana said, is that companies will offer you one to three weeks of salary for each year you work for the company.
If you work for the company for a year, you can receive one to three weeks’ salary. However, if she works for the company for 10 years, from 10 weeks she will receive 30 weeks of salary.
“If you’re a person of value to the company, you might be able to get extra money or ask for extra money,” Brian said. I don’t think I’ve heard of anyone over 24 months in my history of doing this.”
Assess health benefits and retirement benefits together
In addition to the amount of salary, the length of time until health insurance expires is also part of the company’s layoff offer.
“I found it [health benefits] Bryan said: “So if someone stays on payroll or is paid in a lump sum, that’s another difference.”
If you’re paying two months or a year for retirement, health insurance often covers that period as well, says Bryan. However, once a lump sum is received, it is difficult for companies to continue medical coverage.
“This is how insurance companies do it. If you’re not an employee, the company can’t pay your premiums,” Brian said. “On the other hand, if you are still on salary and are paid your regular salary, the company can also pay your premiums.”
In today’s tight labor market, some companies are offering more talent. In a recent layoff, her fintech company Stripe said it would provide cash equivalent to six months of his existing medical premiums or continued medical care.
In the United States, retirement benefits, however or provided, are Department of Labor calls for businesses Temporarily continuing to provide health benefits that were provided to the employee while previously working for the company. This is usually done at the employee’s expense. Required by COBRAor the Consolidated Comprehensive Budget Adjustment Act.
Every company is different, but they offer temporary coverage for about two months, Frana said. However, these ongoing health benefits are not provided at the same rates they were provided as employees and can be expensive for those who have just been laid off.
Challenger said the “major numbers” of total weeks of severance pay were the most difficult to negotiate, but peripherals like health care would retain salaries longer and the PTO would say employees are better off. There may be room for asking for conditions.
Career assistance for negotiating contracts
Retirement and health insurance benefits are important, but there are additional resources that companies may offer in layoff packages that can be negotiated even if they weren’t initially offered.
Helping employees learn about parts of the package that don’t necessarily cost money or set major precedents is important because that’s something HR doesn’t usually try to do, Brian said.
Outplacement benefits such as resume reviews, career coaching, and interview training are key resources companies offer in retirement packages.
Lisa Rangel, founder and CEO of Chameleon Resumes, a resume writing and job consulting firm, says these resources are one of the most needed resources for people to get back on the job market when laid off. says there is.
“If the company doesn’t provide them directly, you can negotiate them yourself,” says Rangel. “Alternatively, if they offer comprehensive and general outplacement assistance, you could negotiate which custom services would benefit you and see if they do it. .”
Other resources include connecting to the company’s alumni network and access to internal resources such as attorneys to assist with legal needs.For online payment companies Stripe laid off workers in Novemberthey gave former employees access to alumni email addresses and also provided career support and immigration support. very important for
These services aren’t typically offered by all companies, but Bryan says employees can and should always ask for what they need and if the cost isn’t too high. help. If she wasn’t offered what she needed or what she thought she deserved, based on tenure and performance, she assumed that everything was negotiable, much like a job offer. Added.
Mr Wolfe said the company’s work goes beyond the financial benefits offered. As an HR leader, in a layoff situation, he said:
“If you’ve never been in a layoff situation before, negotiations may not automatically be considered,” says Frana. “You can always try to negotiate whether there is room for negotiation or not. You never know until you try.”
Getting fired is never ideal and is often unexpected, but Bryan said you should always stand up for what you need and deserve.
“A retirement package can be a good thing if you know it’s coming and do some planning,” Brian said. needs resources, and if you’re ready, another company can scoop you up, so it helps.”
