Asking for an early retirement package

[Dash man]

My team lead took an early retirement package about a year before I left. The package was offered only to his pay grade and up about three levels. I didn’t have the option. I’m sure they would have refused mine anyway since he left. I knew my job was pretty secure after his departure, so when I was ready a year later I gave three months notice to allow them to hire someone and for me to train them. It worked out nicely, except no package for me.

 

[RunningBum]

I wound up with 3 months exit pay, in return for training my replacements overseas (via phone and email, I wasn't going to travel there), because I had let my boss know I was ready to go. I only did that because he was also a friend and I trusted him. I would not have done that with all of my bosses. He also did things like get me a bonus rather than long-vesting RSUs. But he couldn't get me the primo voluntary retirement package that had been offered earlier, that I couldn't get because I wasn't old enough. Tread carefully.

 

[fleefromhome]

Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

 

[youbet]

I plan to retire within a year or so

There is the key. Do you think your retirement plans are suspected? Or does your management believe you're still fully locked in on your career and will continue to be so for several more years?

Are there any downsizing actions taking place now or in the recent past where severance packages were defined and utilized? That would help, especially if ongoing downsizing is on the agenda and you identifying yourself as a voluntary victim would save someone (likely younger) else.

In discussing your hopes of volunteering for a package, be sure to have a convincing story as to why MC will be better off spending money on a package for you as opposed to simply accepting your retirement application and perhaps popping for a luncheon and gold watch. That is, be able to explain "what's in it for them" and why MC will be bettor off following that path.

 

[aja8888]

Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

What trend? layoffs? Goodbye packages? Neither are guaranteed.

 

[youbet]

Good luck to all who are hoping to get riffed and severance from MC. I just found out my former IT MC adopted a new severance policy - NOTHING, ZIP, NADA. I imagine layoffs are coming. This trend is distressing and soul-less.

If someone is hoping to be RIF'd and receive a severance package when their true intention is RE, I'm not as sympathetic. Severance packages are intended to help those involuntarily terminated from employment get through possible tough times between jobs. They're not really meant to be a "retirement bonus."

If you're intent on getting a bonus (buy-out) when you leave your employer at your own discretion, better have that in an employment contract up front.

In terms of compensation to satisfactory employees who are victims of RIF's and are not permanently and voluntary retiring from the working world, I do agree with you that providing some outgoing financial help should be done.

 

[brett]

Good advice here.

Whatever you do, DON'T speak with HR. Keep you ear to the ground and your mouth buttoned up. Be very careful about that discussion and only do it with a boss who you trust and have history.

Don't give the show away by talking about your desire for early retirement. Only ask about downsizing, rightsizing, etc...whatever your firm calls it. Once you are in that conversation there are ways of signalling that you would not be upset if your name was on the list. This is how it worked where I worked. We had 18 years of constant downsizing.

 

[fleefromhome]

What trend? layoffs? Goodbye packages? Neither are guaranteed.

I was speaking about a trend in companies taking away severance.

 

[Dash man]

I was speaking about a trend in companies taking away severance.

I doubt the higher ups will leave without a severance, no matter what they do. I remember a guy that had seven counts of sexual harassment pending. He left with a large seven figure package. Must have been nice to be the son of the Chairman of the Board!

 

[aja8888]

I doubt the higher ups will leave without a severance, no matter what they do. I remember a guy that had seven counts of sexual harassment pending. He left with a large seven figure package. Must have been nice to be the son of the Chairman of the Board!

I would assume that at a senior level, many exec's have the severance package spelled out in their work contract.

 

[IMATERP]

I took my package on December 15, 2017. Accepted 9 months of pay and $5,500. (As a health subsidy.). For me, it was the right decision to "volunteer" because I was somewhere between "burnt out" and "frustrated."

I am very grateful that I spoke with my Supervisor several months earlier as she recognized that I was near the end of my rope and assisted in recommending me for the buyout.

By the way, I do not receive my first retirement check until January 2021, but I had monies saved, access to decent healthcare, and valued peace and serenity over aggravation.

It was an easy call and 7 months later I have a low key part time job and a nice balance of activities and flexibility with life.

I

 

[harley]

In discussing your hopes of volunteering for a package, be sure to have a convincing story as to why MC will be better off spending money on a package for you as opposed to simply accepting your retirement application and perhaps popping for a luncheon and gold watch. That is, be able to explain "what's in it for them" and why MC will be bettor off following that path.

There's almost no way that could happen, which is why you don't go to HR or upper level management about this. It's not a win for them, just for you. However, assuming you have a decent relationship with your direct boss, not losing a head count (unlikely to ever be replaced) along with a retiree (also unlikely to be replaced) can be a significant win. You appeal to the best interest of an individual within the MC, not the soulless MC itself. Then it becomes a possibility and is worth pursuing.

 

[Splash]

As a manager, I facilitated some employees getting severance packages that would not have gotten them if they hadn’t confided in me. My advice includes:

• Don't talk to HR or give a definitive end date to anyone. At my MC, this was considered "giving notice" and made the person ineligible for a package.
• Talk to a trusted manager. Let him/her know that you have reached a point where you are financially secure but haven’t set a retirement date. However, you want him/her to know that you would be interested in volunteering for a severance package to save another employee if the opportunity arises.
• If your initial conversation goes well, consider making suggestions to this trusted manager on how work can be eliminated or automated for your team. Also share ideas on how work could be redistributed to eliminate your position.

When employees shared their thoughts with me, it helped me to redesign the work in a way that got them the package they wanted and created more fulfilling positions for those that stayed with the company. It was a win for everyone.

 

[brett]

splash...it was the same for me.

In fact, I wanted to know. I was called upon on a regular basis over at least 10 years to reduce headcount. I would much rather provide a package to a team member who was planning to retire instead of one who was not.

That way I would be down only one headcount instead of two (we often had hiring freezes). Plus I would have made at least one employee very happy.

But the smart ones did not advertise it. And certainly not to HR or any blabber mouths that they may work with. I did take notice of those who were in the early retirement age and who I knew would be pre disposed to a package. In most cases they came to me or one of the managers. More than a few times I had a quiet word with someone to sound them out. Then we made the 'appropriate' layoff or downsizing decisions.

 

[wolf]

IMO asking for and getting a severance / retirement package is a low probability event with a fair risk of alienating management, unless one has a senior management position.

+1. Appreciate concise advice. Been there. Could not agree more.

 

[brett]

From your point of view, as a former people manager, I would say that the sweet spot for an employee is when the firm has a hiring freeze AND is in the process of HR downsizing actions.

This is when headcount issues really impact the management teams.

IMHO, if your organization is in this 'sweet spot' then it will be considerably easier for you to attain your goal.

I had a senior management position. I did not ask for a package however I realized that when in country management met the intersection of any one of downsizing or centralization my chances of getting the package would increase. It did, much to my benefit.

 

[youbet]

There's almost no way that could happen, which is why you don't go to HR or upper level management about this. It's not a win for them, just for you. However, assuming you have a decent relationship with your direct boss, not losing a head count (unlikely to ever be replaced) along with a retiree (also unlikely to be replaced) can be a significant win. You appeal to the best interest of an individual within the MC, not the soulless MC itself. Then it becomes a possibility and is worth pursuing.

The point I'm making is that OP needs to go into this clearly understanding who are the winners and who are the losers in the "severance package vs no package retirement" scenarios. Understanding that will allow OP to do the best job possible in selling his request and making it happen.

I fully understand your point of OP working with his immediate supervisor as that's the MC person with the most to gain (don't lose a headcount) vs HR. But it's likely that the supervisor will be questioned as to why OP is being chosen for the RIF if OP's performance reviews and skill set don't support him being selected.

I received a decent package when I was RIF'd at 58 yo. My entire department was eliminated and MC was shrinking fast. I had planned on working until 62 yo but after being RIF'd and including the severance and stock option dollars in my FIRE portfolio, realized I could FIRE if I used a sharp pencil with my budgeting. So, I did technically Fire with a severance package, although my retirement plans were still four years off when I was added to the RIF list and booted.

My son also worked at MC in another division. Due to MC's "shrinkage," he circulated his resume and found a great job with another company. He tried to negotiate a severance package since his group was laying off (with severance packages) at the time, but no luck. They told him they needed his skill set, he was not on a layoff list and they might give him some perks to stay but were certainly not going to pay him to leave! He left anyway since his personal prognosis for MC was poor (as he was right as the layoffs went on and on and on for several years) and the new company looked to have a better future, which it has had.

So...... just saying OP would be well served to think about where he fits into his MC at this time. Are there ongoing layoffs happening there now? Might he be a victim? If he's on the "retain due to valuable skill set and high performance rating" list, how can he and his supervisor work around that?

 

[njhowie]

I would highly suggest not discussing with manager or anyone else. Bite your tongue, keep your head down, and just do the time for a year.

If you notice that your company is downsizing and looking for volunteers, that's another story. However, at this time, considering the economy, labor shortage and difficulty companies are having in hiring enough qualified employees, it's likely not the case that your employer would be sympathetic to what you're looking for. If anything, you will likely be labeled a "short-timer" and it could make your remaining time awkward.

 

[cooch96]

Good advice here.

Whatever you do, DON'T speak with HR. Keep you ear to the ground and your mouth buttoned up. Be very careful about that discussion and only do it with a boss who you trust and have history.

Don't give the show away by talking about your desire for early retirement. Only ask about downsizing, rightsizing, etc...whatever your firm calls it. Once you are in that conversation there are ways of signalling that you would not be upset if your name was on the list. This is how it worked where I worked. We had 18 years of constant downsizing.

+1

It depends a lot on your megacorp culture. If I asked for ER, I’m sure I’d either get blank stares or angry rejection for wasting their time. Something like, “you can’t ER, you’re not 59.5 (or 62) yet.”

 

[nhcycling]

My MC has just offered early retirement, here’s the catch, it’s just 6 months severance. Period. There’s also a RIF coming that they’ve communicated with a far less generous severance. I guess if you think you’re going to be laid off, better grab the 6 months pay.

 

[ncbill]

If you ever read the site Financial Samurai, this is a big topic that he talks about.

I'd buy his e-book on negotiating a severance were I in the OP's situation.

 

[jmwh7626]

Many thanks for all the guidance. However, it has become a moot point as i have just been told that my position has been eliminated effective this week. So I guess I will be retiring effective Friday!
However, I do want a lawyer to review the paperwork in case I can enhance my severance package - does anyone know a good attorney in the Bay Area who specializes in this type of work?

 

[Jerry1]

Save your time and money. Corporate severance packages are based on their policy or your employment contract. They are not going to deviate from them unless you have some leverage, like if they will need something from you (your knowledge) in the future. If they call you back to consult (they need you) then you might have some leverage. Best bet is to take the money and run before they change their mind.

 

[Dd852]

Timing is everything. Know when your company does its budget cycle and know who is the decider in your department (it may not be your boss - it may be a level or two higher). In my company September was always the crunch time for the next year. If I was approached then by someone, it often made my job a lot easier to know how I was going to present my next year's plan with the right money/headcount in place. If I was approached in march, it was way too early - I had no crunch on. But in September/October, I was anxious for ways to make a plan....

 

[jmwh7626]

Lol Jerry - I don’t disagree. However, if I am going to have the paperwork reviewed anyway then it might as well be by someone who knows this space.