What changes are coming to this program?
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I believe you're thinking of the Cash Balance plan, with company contributions depending on age/YoS etc.
The previous severance plan, I believe, offered a month of pay per completed YoS instead of 2 weeks. Forget what the cap was in those days.
Currently it’s 2 weeks per year of service capped at 52 weeks. Years ago it was 4 weeks per. Will be interesting to see if it changes. 2 weeks per year likely will remain but they may reduce the max down from 52 to something less would be my guess. Not very good from a PR look if they hang on to someone with 20 years until January came instead of 40 weeks they get capped at say 26 while they continue to move jobs overseas. If they change the policy, let the people go this year
"severance was cut a few years ago before layoffs started"
I'm trying to remember -- wasn't there a formula, including things like pay level and years of service?
"Currently severance isn't generous, it's at "market value" with most peers. Honestly if they cut it further people may refuse and elect to sue the company for wrongful termination. The point of severance is to protect the company from lawsuits. Changes as far as how many weeks of pay you receive per years of service are unlikely, perhaps changes to the maximum weeks you're allotted makes more sense."
This is an excellent point. A 10-year employee would be more willing to keep their mouth shut over 20 weeks of pay vs, say, 10 weeks of pay.
Does anyone know if tech is affected?
- Chris Browne
Post ID: @tws+1dqxh5Oi
"now it’s our turn to run the organization much more competently and profitably."
Step up and take it then - or just keep whining on an anonymous layoff site. That having been said, give me the option to take a package and I'll be out like a scout on a new route as they say.
Currently severance isn't generous, it's at "market value" with most peers. Honestly if they cut it further people may refuse and elect to sue the company for wrongful termination. The point of severance is to protect the company from lawsuits. Changes as far as how many weeks of pay you receive per years of service are unlikely, perhaps changes to the maximum weeks you're allotted makes more sense.
The decision to cut severance again has been made (I don't have the details). When to implement this change is the question. I understand it will be in 2022.
Why I believe this.
- Remember, severance was cut a few years ago before layoffs started. Historically, I've seen companies change the package during layoffs, so those that were laid off early had better packages than those who left later.
- The goal is to reduce the number of employees. That's the driver for the hub strategy and RTO. Getting employees to leave is cheaper than giving severance packages. Making severance less desirable may get more people moving out the door.
The people that keep,saying it’s changing, you know you are saying that to create panic. Ask yourself what a lowly piece of trash you are for intentionally trying to mess with people like that.
We need to trim the fat much more; especially the boomers. I for one am tired of carrying the load of others who won’t do their part. We all see this, it may not be nice but many must go in order to save those of us who are relevant, reliable and add value. The boomers have had their chance, now it’s our turn to run the organization much more competently and profitably.
None that I have seen or heard rumors of.
I heard tech is affected.
2 weeks pay
People say the same thing every couple of weeks. I wouldn't put too much stock in n.