Redundancy or security: WWYD?

[Myjobdilemma]

NC for this as my normal username is fairly identifiable and I’d rather not be.

I have been made redundant following a restructure in my department. I understand the rationale of the restructure (though do not agree with it, but ultimately it’s my boss’s call how the department is organised) so not disputing the redundancy. I am the only person to be made redundant, but I do not believe it is personal.

A new role has been created which I can have if I want. It is a grade lower in salary, which affects health insurance for my family, car allowance, bonus payment, and share options. It is also a £10k drop in salary.

Or I can take the redundancy package, which is 3 mos’ pay in lieu of notice, plus 5 mos’ salary (minus car allowance), holiday owed and the offer of 6 mos’ career counselling.

I do not really want to keep the job offered as it is boring, and I would have to report to someone who has been a peer till now so a bit awkward... but it would mean security. I would look for another job but it might take many months before I found one I wanted and for which pay is commensurate, as my company is a very good payer so will be hard to match elsewhere.

My concern is that I can’t un-know what I know, so will end up doing much the same job as I am doing now but for less pay. The new role is similar to the old one, but “different enough” that can’t argue constructive dismissal - but I can’t see how I can do the new role without bringing the skills and experience I already have to it.

I am veering towards the redundancy but also scared to jump with nothing to jump to, as I am the breadwinner and am 50 years old.

WWYD? Sorry this is long, but any advice appreciated.

Definitely redundancy! You'll get 8 months salary, plenty to live off and plenty of time while you find a new job

Is this an opportunity to shift sectors and do something different?

If you were to apply for a new job tomorrow, what is currently available from a quick web search?

Are there any customers / clients / contacts who might be able to help find you a job?

I think I would go. Everyone will know what has happened and they have effectively demoted you. I’d take their money but I would check what jobs are out there first! You didn’t have much security in your current job. Do you really trust them?

I'd go for redundancy. 8 months salary is plenty and I'm sure you'd get another job pretty soon

Thank you for replies, pretty unanimous so far! I am just scared because even with the salary drop, the new salary is good for the sector and I could do the job with my eyes closed. But I wouldn't enjoy it, I do know that, and would probably look to leave in any case, just in my own time (and then without the redundancy payout as once I've decided to take the new job the redundancy goes off the table).

I have looked for other jobs since I was informed of this at the start of June and there are some out there but not loads, and most would mean a salary drop even from the new role's level. However, they may be more interesting and could progress over time, whereas I have been told that the new job at my current employer will not allow any progression in future - it's basically a new box for me to climb into and if I do, the lid closes.

I am tempted by redundancy but still scared! Anyone have any stories of successful re-invention after redundancy? Positive life changes? Will employers hire a 50 year old?

Thank you!

I took a similar package coming up two years ago and it had worked out really well. The career counselling was excellent. I took full advantage of it and for pretty much the first two months ( after a couple of weeks break when I left) diligently worked through all the assessments an went to lots of one to one sessions. I did practice interviews had my CV fully overhauled and worked out what I really wanted to do. Three months after leaving I had the right mindset to go about job hunting properly and met recruiters etc. I’m now in an excellent role at increased pay and a good step if not two more up the career ladder. We’ve also now taken four years off our mortgage with the redundancy payments now I’m in a secure position

I think job hunting is a bit like finding a date. If you aren’t actually ready to start dating again then you seem to put out vibes that mean you don’t find any. Once you’ve got the right mindset and are in a better place post break up then you tend to find a good relationship. It was the same for me with job hunting. The first things I applied for immediately post redundancy weren’t right looking back on it and I didn’t get them. Post the redundancy outplacement stuff I was totally set up for searching and at the top of my game and ended up able to pick and choose between offers.

Obviously this is my personal experience and my sector but hopefully a positive tale to show it can work out.

Oops forgot to add my new role and industry are totally different from the one I took redundancy from. The outplacement gave me the confidence to know what I wanted to do and the package gave me the financial security to go for it.

You also need to consider where you currently live and the emplot yment hours /holidays et I downsized to a less paid role but in a year or so was offered a better job within my company and now earn more than I did .. It was hard downsizing ,but it kept my options open and protected my good working hours leave and pension.. I looked around me at the same time, but couldnt find anything which suited me better.
However I do live and work in an area which can be difficult to find really employment locally ( but its brilliant to live in after as seaside/ rural) , and I would have had to commute several hours to get another job in my sector. It just wasnt worth leaving to me..

I've now just taken flexible retirement and got a good package because of my good pension . Am really glad I stayed ..

I disagree with the previous posters. I'd keep the job. Nobody knows how Brexit is going to affect things and getting a new job might not be so easy. Also you start again from the perspective of unfair dismissal etc and have to wait 2 years for job security.

I'd rather have a job paying £10k a year less than no job at all. You may think you won't enjoy it but at least you'll have a regular income and you can still look for new roles while you are there.

I was made redundant with similar cash payment about 6 years ago. Circumstances were different in that my role was moving into central London with minimal enhancement to my salary to cover the cost of commuting. I took the redundancy.

No regrets as the idea of a 2 hour commute each way was more than I could have lived with.

Starting again was not easy. Apparently you should allow around 1 month per year of service at your previous employer to get back to the same level. Obviously some people will be a lot quicker but that is supposed to be the average.

It does get harder post 50 IME and TBH I am kind of resigned to it.

How long do you have to make the decision? Can you start applying immediately and see if there's is much interest? I was made redundant once and it worked out well for me. A new job in a month and a pay rise but I was young and not overpaid.

I would be very tempted by the redundancy. (Sign up to jobseekers straight away for extra money that you would be entitled to but can't back date). But if you stay in those circumstances then I would be tempted to take it easy at work-no extra hours or extra duties. Are you sure that there is no case for constructive dismissal, sounds out of order to me.

Take the package and really invest yourself in the careers counselling service. Be open to any possibility- freelancing, consulting, contracting - don't just look to replace what you have with a similar set up.

Remember a good chunk of your package will be tax free too, so potentially you're looking at closer to 10 months salary.

Don’t forget to allow for tax implications. First £30k is tax free so your 8 months salary may be more.

I really appreciate all this input and insight, so thank you all for taking the time to comment. I have until next Tuesday (31st) to make the decision: I was informed of the redundancy in early June, with a view to it being effective end-June - however, I asked if I could try out the new role and found that as it was not equivalent to the redundant role, I was entitled to a month's trial period (I was not told this till I investigated ). I have been doing this for July but it's a mockery really - the role hasn't been well scoped yet, and they are unsure whether it will be very similar to what I'm doing, or different. It's up to the person who now heads the department who I would be a part of (formerly my peer). So it's impossible to get a real feel for the role from trialling it, though it gave me a month's more pay!

This is why it's a dilemma. I could stick it out and perhaps it would evolve into a decent job, but then I would resent doing it for less pay. But I totally take the point above how it's better to have a job than none. Or, the job could stay lower-level and less interesting to me, in which case I would leave (and probably be grumpy the whole time). But at least then I could leave when I was good and ready, rather than having to jump now - but if I jump now, at least I have a redundancy package to jump with. So I also take the point about investing the career counselling in myself and hopefully finding something else. I am local (enough) to a number of fairly large employment hubs so any commute shouldn't be significantly different to what I do now.

I'm still very torn! Thank you for sharing your experiences, it's incredibly helpful as my brain has been on a constant circular track for over a month now so this is helping me change my tread a bit.

I would have taken redundancy. I was made redundant about 5 years ago when employer relocated too far away to for the costs of commuting to be feasible. I left with about £13k redundancy and a year of careers support.

I am VERY risk averse so as the main (but not the only) earner I mapped out our finances using the redundancy payment, stripping back our outgoings to make the money stretch. Once I realised how long I would have to find a job I felt much better. As it happened I was offered another job just as I was made redundant and went straight from one to the next. The money then contributed to a house move.

If you take the redundancy you will have more time for job hunting and will have the help of a careers service. From my experience they really delve into job descriptions and CVs and help with the whole process. If you take the alternative job and hate it then you'll be job hunting in the evenings with no support from the careers service.

You say that there's not much out there in the way of suitable roles, could this be because it's summer? I know that when I was working in HR we really scaled back the jobs that we advertised due to panel availability.

I also think that taking a step down career wise isn't always the best move. It can sometimes take a while to get back to where you are, let alone take the next step.

i am risk averse but in your position i would leave and take the cash. staying for 10 k less would just be depressing. presumably worst case you could easily find another job at the 10k less band, or temp for a bit. and have a nice wedge of their cash in your pocket.

@AJPTaylor and others: that's what I'm thinking (but still scared). I may be able to find an interim role which would make me feel better. I have had some interviews for new jobs since I was informed of the redundancy but only one so far seems to be progressing and I'm not sure if it's because I'm not right for the others, or if I'm not coming across well. It's been a long time since I last interviewed! So it's hard to tell whether it's available roles that are the problem, or me. I'm hoping careers counselling might help.

Ideally I'd like to have a job offer in hand and also get redundancy, but while that's my ideal scenario there's obviously not a lot in it for my employer to hang on until I say so . I have four more sleeps before I have to make the decision. I want to leave but am quite scared to form the words.

It is daunting and scary. I’d only worked for two employers in 20 years when I took redundancy. That’s why the career counselling is worth its weight in gold in my experience. To get the kind of support a six month package gets you would cost thousands and they will get you “match fit” for job hunting - I learned so much through doing mine. I’m also pretty risk averse and did weigh up pros and cons and risks and likelihoods and there was too much in favour of redundancy when I did that. I had a potential role at the company but like you it wasn’t the right one for me and I knew it would only last a year or so and then I’d be wanting out. With the redundancy I was being paid to job hunt and given all the support I needed to do so whereas a year later I’d have been trying to find jobs, blag time off for interviews and prep for them all whilst working full time and miserable and knackered.

I also don’t buy the “it is easier to get a job with a job” view as gospel. For me it absolutely wasn’t the case I’ve done it twice now and never had a problem with not having a job whilst interviewing for a new one. The careers advice spent a lot of time working with me to make sure I had an excellent explanation for recruiters and at interviews and it hasn’t been a problem at all.

I’d take redundancy - with 8 months salary, if you budget well, you could plan for 10-12 months to find a new role without compromising living standards too much, of being forced to take something unsuitable.

My dad has had two redundancies in his sector. He recently moved to a new company at the age of 56 and doubled his previous salary (though this move was planned, not redundancy). A few restructures and payrises and he is now earning 2.5 times what he was a few years ago. I’m proud of him .

The redundancy gives you time. It sounds like you could find a slightly lower paid role with progression prospects, which seems a much more appealing idea than taking a lower paid job with no advancement.

Redundancy without a doubt. You've got a good package there. You don't want this new job.

Redundancy in a heartbeat and I'm slightly older than you. Hell, if i was given the choice of taking a £10k drop plus losing management grade benefits or leave with nothing I'd still leave. Bear in mind, you could stay and there's nothing to stop you being made redundant in the future anyway and with a lower package to boot. Life doesn't end at fifty but it would help to know what your field is. My team routinely hires freelancers/contractors who get a day rate between 400 & 550 and most of them are late 40s and older.

Think of it in terms of up to 1 year's salary depending on your tax bracket. You get the first £30K of redundancy tax free so your 8 months' money could easily be 10 or 11 months in real terms.

I'd definitely take the redundancy and run. Think how you'd feel if you took this lower grade job, hated it and then realised the redundancy is no longer available, so you'd leave the company empty handed anyway.

Thank you all, again, for your replies. I've decided to take the redundancy and told them today. On to my new chapter!

Appreciate the support, especially @RockNRollNerd for your real-life experience.

Wish me luck!

Good luck! If you have enough money I strongly advise taking a break for a couple of weeks and then attack the outplacement and job hunting as if that were your day job. I used to do a full morning of some stuff most week days and then had the afternoons off as it were. The routine helps and also gets you to focus on the tasks, take all the support offered and don’t jump into the first job that crosses the table if it isn’t what you want. Consider all options including things like a fixed contract to get new skills or brush up rusty ones.

It’s a tremendous opportunity to have the luxury of time to do it right and work out what you want. It sounds like you are part way there already as you’d weighed up that the new job wasn’t what you wanted. It’s an exciting time and can be scary but am sure you will come out of it much happier and satisfied in your career.