Offer packages to anyone 55 + and thousands of expensive employees would gladly accept the offer. Win win
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Employees that are ready to retire start those rumors.
I often wonder how these rumors get started
Yes, I heard that for 33 of my 35 years. Happened once. Keep on waiting.
Early retirement offers rumored to be on their way by the end of 2019
If any of you have ever worked in a numbers driven environment, full of micromanaging and constant criticism of your work and an average raise of 2%, if that. Then you have found it.
The work needs to get done yes. But it's the Allstate way to go ahead and make changes and then ask questions. They go ahead and make changes regardless of what the outcome will be. And who will be there to clean up the messes? Why should we care?
By advocating for a VTO, you assume they want a lot of people out, and they want them all out at a certain time. The reality is, even if they are transitioning roles to another part of the country, they need to get the work done in the interim, and a VTO can/will result in a jailbreak. Difficult to control. It’s also a math exercise in cost of severance (w/no VTO) vs VTO.
@bitter on aisle 5; I was also significantly impacted by the ‘13 pension freeze, much more than $400k) but the reality is, less than 15% of publicly traded pensions at the time. Senior leadership/compensation team benchmarks the marketplace, and tries to provide a competitive package. If they come in too low, people will walk, or they’ll have trouble hiring. Too high, and they’re “overpaying” for the job. (as a shareholder, that’s also an issue) As an aside, in the couple of years that followed the ‘13 freeze, employee turnover didn’t increase, and I don’t think hiring was an issue. If the company is perceived as “treating people like sh*t”, it should show up in employee retention. If that becomes an issue, and it’s compensation (including benefits), they’ll react. It’s that simple.
@ "bitter on isle 5"... I could not agree more with everything you've stated.
The 2013 pension freeze has had a deep impact on many employees. Just imagine what would happen if the state of Illinois pulled this similar stunt on their public workers.
In any case, there's not much one can do at this point. Most veteran employees are just doing the bare bone minimum to get by. The younger crowd is very eager to learn and grow. They will be rewarded only when they leave the company, at which time they will command a sizeable pay increase. This will especially be the case if they remain in the downtown area.
In the end, corporate greed wins. I recall TW once stating that CEOs are justified in receiving such high compensations. He went on to say that this is due to the short duration of their careers as CEOs. He's now been at the helm for 12 years.
Reduced productivity and lack of enthusiasm @Anonymous? Freezing the pension in 2013 cost the typical worker $100.000 to $400,000! For years we accepted lower than market pay because of "Total Rewards" including pension and profit sharing making it pencil out. Then health insurance costs increased and benefits were reduced, annual pay increases were reduced in actual % and due to broad banding, We are out thousands of $$ and now when we should be able to have an option to leave with a package they pull it away.
Call me bitter on aisle 5.
I don't believe that Allstate employees are being mistreated. Perhaps, it may appear that way to some, but that's each individual's perspective.
The real threat to the company, I believe, is the reduced productivity from those employees that are at or near retirement age. I have personally witnessed a lack of enthusiasm from these individuals and have no doubt that they are performing at minimum levels. Very few will go above and beyond to bring value to the company.
I struggle to understand why Allstate does not take action to entice this segment of its workforce to retire. Certainly, some sort of incentive would be justified.
Why in the world would they offer severance when he can just treat everybody like sh– and have them leave on their own?
This would be a good strategy for targeting Northbrook employees. I can't understand why an "early out" isn't offered to those in a location that's been slatted for downsizing.
Knowing that they will be eligible for severance, the 55+ segment is going to be very reluctant to retire or leave on their own. An early retirement option seems to be the best course of action here.