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During your professional life, you are likely to encounter circumstances that are beyond your control. Even at times of personal achievement and success, such as positive performance reviews, promotions, and compensation increases, you may be caught up in a sudden upheaval.
Buyouts, mergers, acquisitions, economic recessions, rising competition, corporate mismanagement, new technologies, shifting consumer behaviors, business reorganizations/restructuring, and new laws are just a few forces that make up the “invisible hand” (that THAT, Adam Smith!) that affect the labor market and, consequently, you.
Regardless of the exact reasons, sometimes the hammer is going to come down and there is little you can do about it. If your job is being eliminated or is at risk of being eliminated shortly a handful of scenarios are likely to play out:
You are offered a buyout. This is a corporate-speak for a severance package. If you’re directly approached and offered a buyout, you’re vulnerable. While perhaps not true 100% of the time, it is likely your position is targeted for elimination and you may not have a choice unless some kind of malfeasance is at play (more on that later). If you’ve been wiped off the org chart, you may need to downshift into “Maximize Mode” instead of “Adapt Mode.”
Company-wide buyouts are offered. In this scenario, a company may ask employees to volunteer to quit in exchange for an exit package. This is typically a sign the company culture is entering a period of dramatic change. Even if you don’t volunteer, your long-term job security is not guaranteed, your job role may change, and you may have less leverage in your day-to-day duties as well as during any future cuts. A general offer may soon become an individual offer but the severance package may not be as robust.
Your future with your employer is uncertain. Worse that knowing an upheaval is on the way, is not knowing what the future may bring. Right now, for example, United Airlines is asking pilots to volunteer for unpaid leave due to delays in receiving new planes from Boeing - that’s writing on the wall. If you don’t volunteer, your work schedule may change and company morale is probably not at an all-time high. If you do volunteer, there may be no guarantee how long the “time off” will last or that you be back on the payroll in the same way as before. The uncertainty may make you question whether or not it’s time to move on.
Your company announces layoffs are imminent but no buy-out offers have been made to you or anyone else. There are laws requiring employers to announce major staffing changes so you may know cuts are coming but are unsure whether or not you will be affected. You may want to have a candid discussion with your manager and/or human resources so you can make an informed decision about what action you take. You may want to wait and see where the chips fall. You may want to get the hell out of Dodge and skip the severance process altogether.
What do you do if you’re faced with a buyout offer?
<<<<IMPORTANT DISCLAIMER>>>> Insider Career Strategies is not a law firm, and any recommendations are not to be considered legal advice.
Buy-out offers are always accompanied by a legal separation agreement your company will ask you to sign in exchange. If you are ready and willing to sign, it is always a good idea to have an employment attorney review any legal agreement before you do. If you don’t want to sign the agreement because you believe your company is in breach of labor laws or includes provisions with which you are not comfortable (e.g., non-compete clauses) immediately consult an employment attorney before making any moves.
1. Assess the landscape. Are you facing a corporate restructuring or has your company been bought by a private equity group that will most likely gut the place? Are you merging with another company and your role is duplicative? Does your boss hate you? Try and make an honest assessment of the calculus behind whatever upheaval is on the way and your place in it.
2. Adapt mode. If you’re faced with uncertainty like the United Airlines pilots, know layoffs are imminent but do not know if you will be one of them, or a general offer is made but you’re not one of the initial people who accept it, you can take a wait-and-see posture while preparing for the worst. For example, sometimes a company makes rolling cuts. You may be one of the first people out the door. You may survive a round of layoffs in the spring but get your pink slip in the fall. Or your position may be kept in the end and you can adapt to the “new” company. If you decide to stick it out, be ready with all your job-seeking tools. Update your resume and LinkedIn profile. Line up referrals and tap your network. Don’t wait for the hammer to fall.
3. Maximize mode. If a buyout offer is made directly to you, or you believe you will most likely be terminated soon, it’s time to figure out how to make a graceful exit with as large of a severance package as possible. The softer you land the better. Believe it or not, most companies will lead with their most generous offer to trim the “low-hanging fruit” as quickly and as painlessly as possible. That doesn’t mean there isn’t some wiggle room but don’t dig in and “hold out.”
4. Determine your leverage. Do you have any? If you do, what is it, and do you want to use it? Leverage can be many things -- a great relationship with your boss or ownership, specialized knowledge, work on sensitive company projects, or knowing where the bodies are buried (uh… metaphorically speaking of course). If you have an employment contract, it may have provisions that detail what you are entitled to in the case of non-performance-based terminations and your leverage is to ensure they are enforced.
5. Decide whether to negotiate. Your company has a separation agreement it wants you to sign because it wants to protect itself from any future legal action regarding your termination. You want to walk out the door with as much as you can carry. Let the games begin! Remember, firing people isn’t easy for anyone, and reasonable arguments may find a sympathetic ear if they are made professionally and framed as a win-win. If you believe you have the necessary leverage to get your employer to sweeten the pot, indicate that you are ready to sign the agreement (after an attorney reviews it) if you can agree on mutually agreeable terms. When the time comes to make your pitch, know exactly what you want. For example, if they offer you six months’ salary, don’t just say you deserve more. Ask for a specific number of months and explain why you’ve earned it, if you negotiate in good faith.
Philip Roufail contributed to this article.
Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercs.com.
