It occurred to me that announcing major layoffs and then letting us wait to find out more details and stress over it for months could be a part of an intentional strategy to get as many of us as they can to quit. Saves them severance money, saves them unemployment money... It's a definite win for Allstate. An evil and immoral win, but still a win...
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Tossing the layoffs out there in 6/10 was a tactic to get people to leave on their own. These delays in taking action just fan peoples flames about getting another job before they get cut. The delays are also a punishment of a sort as they must really hate the workforce.
I am an Esurance employee and have felt this for months. The additional stress on top of everything else going on in the world right now is almost too much. Some will quit due to this but not sure where they will go as limited opportunities right now. It is very interesting that a company that is laying off thousands of people just posted over 200 new jobs.
quitting if you are getting severance is not dumb if the job will be paying more, Allstate and other insurance companies are some of the lowest paying companies out there. I know people that have gone from insurance sales at Allstate to other types of sales at other companies and nearly doubled their salary, HR Generalist who went from 70K at Allstate to 100K at their new company, and many others. I know one person who was looking at a layoff and just picked up a new job, the one month severance he was looking at getting wasn't worth staying for the 25K increase at the new job he started at Monday.
Look to see what is out there and you might find a great deal.
Do not quit if you have any kind of severance coming to you potentially as you were throwing money right out the window
Don't quit, dumb
5 of our 18 team members have quit since the layoff announcement in June.
Seems obvious to me this is part of their strategy. Also, the timing of the layoffs will be right around the holidays. I don't think that's a coincidence either. Most people don't want to lose their job, especially around the holidays so I think they hope people will find other jobs instead to minimize severance $$ they have to pay. Have lost so much respect for this company with how they are handling this and that ridiculous assessment.
At first I thought it was a dirty ploy to save money. I have come around to the idea that perhaps the ineptitude in Northbrook is actually helpful for a lot of employees.
- We have a clear look at the leadership, planning, & implementation abilities of the folks in charge. From my vantage point, it is not real good. So, to me, this clearly gives us insight into the future of ALL and how the culture etc will be 'transformed'. So, time to look for a job while these ding dongs are paying us to work from home.
- TW had the 6/10/20 call announcing what was coming. For any employee 5 years or less, the severance package is essentially a months pay. You were told 2 months ago that a good chance exists you are looking for work soon. Plus, you will get 60 days from whenever they tell you that you need to beat it. For most this will end up being in the neighborhood of 75 - 90 days from 6/10/20 you were told + an additional 60. This is plenty of advance warning to get your ducks in a row for your next gig and if one can find a decent paying gig, waiting for the magical 1 month severance (5 year or less employee) seems silly. Take the new job and drop this dumpster fire like a bad habit.
When I look at it from this perspective, while the incompetence is shocking and frustrating, it does allow the employees a lot of time to look for another job.
@xhn+16pX7jCL the WARN act is what you are thinking of
yes the more that quit the easier it is to make cuts, and really those with only a few years at the company should take this time to look for new jobs, they have little severance and could make up the difference at the new job, I am already looking and know of several that have already left as the pay increase at their new job made up for giving up any severance or potential severance.
Probably so we have had 4 people leave since this announcement. Since everyone is working from home who knows when they actually quit.
There is expected attrition when an announcement of layoffs occur. The amount is typically very low when referring to a larger corporation. Although there may be some end-game benefit, it’s not enough to be purposefully strategic. One thing that would support that this isn’t the case, is the refusal to extend early retirement offers by the company. But hey, you never know.
They are an at-will employer. This means they can fire you for no reason (assuming you are not a protected class).
No law requires an employer to pay severance pay. The Fair Labor Standards Act (FLSA) requires that an employer pays an employee whose employment has been terminated their regular wages through their completion date and for any time that the employee has accrued. Time accrued would normally include accrued vacation time, but not normally sick days.
I am not sure but I think there may be some regulatory requirement to advise of a layoff when a company plans to impact a certain number of people.
Frankly, I wouldn't give them that much credit. I don't think they know wht they're doing
Yes, otherwise they would fire who they want/low performers and that would be it. I’ve never seen a company drag out layoffs for months and months with ridiculous “assessments” and still no clear picture of who’s getting canned, they’re hoping you will quit in the meantime
I cannot think of any other explanation for why they handled it the way they did. So yes, I do think that’s the point
From a seasoned professional this is a dirty but real tactic to save money. All signs point to confirming this is true.