Amy Lindgren
So much can happen in a week, or even a few days for that matter. When I put together last week’s column on responding to a worker buyout option, the federal government had already made such an offer — to the entire federal workforce of about 2.1 million.
Although I wasn’t writing specifically for that group — because their deadline for response had already passed — I did want to provide advice for the situation in general. But then the federal buyout bus began dropping wheels and heading for a cliff at the same time. (Apologies for the mixed and unlikely metaphors, but that’s the state of things these days.)
I’m not sure I can recap what’s happened since, but it’s been breathtaking. As in, take a deep breath and see how far you can get with this summary:
At last count about 75,000 workers had accepted their buyouts but the acceptance didn’t matter because a judge halted things but then they got unhalted but it still didn’t matter for some people because they were deemed ineligible for buyouts and then a bunch got fired or laid off instead most especially those on probation in their jobs even if they had worked for decades in a different federal role but then switched to a new role where they were still considered probationary and then unions and lawyers tried to help but that’s not changing things and and …
No, that didn’t work. I thought blurting it all out would help me make sense of this but it just made me dizzy instead.
Presuming you’ve caught your breath, let’s review and move forward on what you might do about a buyout offer in more normal circumstances.
The primary tips from last week’s column included: Be clear that it’s a buyout offer and not a layoff; read the fine print on the offer; negotiate if possible; and take stock of what the buyout will “cost” in terms of: opportunities if you had stayed, liabilities that must be repaid to your employer if you leave, and the possibility that a richer offer could follow (or not).
That’s a good setup for this next point of discussion, which is how to approach the decision and what factors to consider. When weighing the worker buyout decision, ask yourself:
• How would leaving impact career plans? For example, would you leave with too little experience for a similar job elsewhere? Are you on track for an important project if you stay?
• How would leaving impact personal plans? Having relocated for this job or receiving benefits such as college tuition are two reasons you might try to stay if you can.
• Were you already planning an exit? If you were planning to leave anyway, the decision might make itself.
• Are you close to retirement? If so, then taking the payout could be the obvious move. Likewise, if you’re a few years away, you might doubt that the job would last that long — again making the payout attractive. But if leaving would create an awkward gap before retirement, the scale could tip to staying.
• What’s your post-buyout plan? If you take the money, what happens next — job search? Start a business? Upgrade your training?
• Can you afford this buyout? If the package provides only a few months of income — and especially if it doesn’t include health insurance — it may not last very long. But if you can stretch the money or even bank it, the buyout could be a windfall.
• What does staying look like? While you don’t know if there will be another offer or even layoffs, you need to consider what it will mean if you end up staying in your job after others have left.
In addition to weighing those questions, you have some homework to do:
• Confirm the buyout details, including how much you’ll receive after taxes and if it will be a lump sum or bi-weekly payment.
• Check your budget, to understand your expenses.
• Compare the buyout with unemployment and other benefits you would receive if you stayed and got laid off.
• Consider talking with a lawyer or adviser as you finalize your decision.
We’re almost there — come back next week and we’ll wrap up this short series by looking at steps to take even before a layoff or buyout is announced. Whether or not your job feels stable, it’s good to be ready in case your employer’s fortunes turn.
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Amy Lindgren owns a career consulting firm in St. Paul. She can be reached at alindgren@prototypecareerservice.com.
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