Look for a new job or take a layoff package?

By Scot Herrick | Job Search

Jun 24

There are many good reasons to go and find a new job because of persistent layoffs. As with everything career oriented, however, there can be some good reasons to stay and take a layoff package. Not many. A few.

Here are five good reasons to stay and take the risk of being laid off with a package:

  • Pension. If you are fortunate enough to have a pension, there are usually time frames you have to deal with to (significantly) increase the pension payout. If you are a year away from those time frames, for example, you may want to stay for the significant increase in payout.
  • Vesting. Stock options. Stock grants. Staying an extra year can mean significant dollars being available to you. Unless the stock drops 85% in a year
  • Completion of paid tuition. If your company pays tuition as part of its benefit package, staying with them for the paid tuition can make good sense.
  • Paid training that enhances your job skills. Certification programs, for instance.
  • You need to pay back a loan in your 401(k). Loans last as long as the company you keep. Then they are due in full.

You should note all of these reasons are your financial reasons to stay. You will get more money from the company if you stay — diametrically opposed to a company that is laying people off to save the very money they are paying you for your work. This is an adversarial position. Being in this position means your carefully laid plans (or hopes) of not being laid off in order to accomplish these goals is entirely at risk.

This also assumes you will get a layoff package — not always the case.

Are there other reasons to stay and take a package? I’d love to hear some.

  • Jim H. says:

    This hits the mark. You do not know how much of an anchor the RIF environment weighs you down. Take it from someone that was able to escape in the nick of time.

    • Scot Herrick says:

      @Jim H.
      I’m always surprised by the atmosphere of a company in trouble and how much that plays into people’s psych. It becomes an anchor and we don’t even realize it was happening.

      Good comment, Jim.

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