Redundancy - what would you do

[Mama17xx]

I have been working in a corporate company for 15 years. Great work life balance, early finish on a couple of days to be with my child, work from home.

Early April a restructure was announced and my role was at risk. Voluntary redundancy was offered, and I took it for the following reasons:

• redundancy pay out was tempting
• next year my mortgage is up for renewal. Currently at 1.7%, will likely go up between 4 and 5%
• my current role pays perhaps a little lower than national average wage, or there abouts. Wanted to find a higher paid job so I could afford the repayments next year

My plan was to use the redundancy money to pay towards my mortgage next year. This would mean that my monthly payments would stay the same, rather than increase. And in the meantime, find another job, hopefully with a higher pay.

I applied for a sideways move in the company, as a safety net, and I was successful. They offered me the role, same money, same working from home and early finish benefits. Great job with a lovely team.

But the mortgage situation will still be there next year, and no guarantee I will be promoted in a year, particularly because it’s a new role that I’ll be learning from scratch.

What I don’t want to do is take this sideways move and have to resign next year anyway for a better paid role, when I can leave now and take the redundancy money which will help me be financially secure in a years time.

But equally, I’m concerned if I take the redundancy money, I will be unable to secure another role, and will need to use the money to live on. Would likely need a temp job, until I find a new role, but how would I do interviews?

I don’t interview particularly well, especially face to face. I do better with remote interviews. I’ve applied for about 10 roles, with some interest, but some roles have 100+ people apply which is scary, and some that I thought I was perfect for, said they weren’t pursuing my application. I work in marketing / digital sector.

I guess my question is, what would you do? Would you take the money and try and find another role? Or would you side step into this lovely role, great for work life balance, and just try and work towards a promotion, especially with the current job market? Knowing my mortgage will increase next year, and on my current wage, it will be incredibly difficult?

Last day will be end of June.

I have a partner who supports the redundancy decision and will try and help financially where he can. Mortgage and house in my name.

I’ve really been struggling knowing what to do.

Thank you

Take the new sideways job, bank the redundancy for now, keep applying for new jobs while working towards the promotion. If you get something better paid, take it. If not keep plugging away.

A bird in hand is worth two in the bush.

The job sector is pretty brutal at the moment so I’d go for the certainty of the job you’ve been offered and try to work hard for promotion. It will also give you time to find something else that has the same good conditions of promotion is looking unlikely. If you take redundancy, it may take you a long time to find another role all the while eating into the payment. You may be forced then to take something that doesn’t have the favourable conditions of the job you’ve been offered. You could look at other ways to make money too like getting a lodger.

In the current job market I’d take the sideways move. It does depend on the sector you’re in, but the job market is dire at moment and may well get worse. The offer gives you the certainty of knowing you’ll have a job and not risk longer term unemployment.
Just continue job hunting until that higher paid role comes along, but with redundancies in many sectors there’s no guarantee at the moment

I would be concerned that if your company is making voluntary redundancies now that they might be struggling and might be making forced redundancy later on, so even if you move to a sideways job security is not guaranteed.

You would also be more at risk in that new job if they make redundancies because technically you would be a recent hire.

I would take the redundancy package if it is generous enough.

Why dont you want to do this...?

What I don’t want to do is take this sideways move and have to resign next year anyway for a better paid role,

Because it exactly what I would do.
Its harder to find work when not in work.
You are not strong in interviews.

As pp said bird in the hand...
I know people put of work for 18m +

How good is the redundancy payout?

I don’t need to know figures as you’re obviously not comfortable sharing that, but how many months pay would it equate to? Assuming as you’ve been there so long it would be decent.

Would you also be entitled to PILON? How about holiday pay, would you get a few days paid out there too?

Are you sure you'd be eligible for the voluntary redundancy now that you've secured an alternative role at your company? At my place, securing a suitable alternative role would remove you from being at risk and mean you couldn't take the voluntary redundancy option.

Like others have said, I'd stick where you are. The job market is very difficult at the moment, and you might end up spending any redundancy money keeping you going while looking for work.

agree with pp that job market is tough. Assuming your sector is affected if your current co is cutting roles.

take job and start looking for better role.

I would take the sideways move with lots of flexibility rather than roll the dice with redundancy.

you might get another job which suits your life as well which pays the same or better or you might not. The job market is competitive and you say yourself you’ve tested it and not got anywhere. You’re not even being taken to interview and you say you don’t interview well.

in the meantime you can continue to apply for better paid jobs as they come up or think about how you cut expenses or earn more money for when your rate changes

The redundancy payout is around half my yearly salary. Could be more after save as you earn, holidays etc.

I have had some interest when applying for roles, it’s not been dire, just more difficult than originally expected, but I have only been looking for approx 3 weeks.

I have until end of June until I’m officially been made redundant, and I’ve allowed myself 3 months from then, before I need to start panicking, so that’s approx. 5 months from now for me to find a role.

The redundancy money would ensure my mortgage payments stay the same next year, it’s so tempting to take it. But the sideways role is perfect for home life balance, and job security - but redundancies can happen again (last year I was at risk of redundancy too, so twice in 2 years. No voluntary redundancy offered last year)

I need to confirm if I want this sideways move by COP Monday.

I would 100% take the new job. It’s brutal out there and a half a year’s salary isn’t enough to avoid the stress for long.

I planned 3-6 months off. Starting new role soon after 12 months off. Beware of the job market and give yourself more time than you think.

Take the offered job with the good conditions. Even if you find a new role it probably won't have the flexibility, especially at the start.
I took redundancy a few years ago expecting to have a couple of months off then get a new job. 10 months later I got a job paying less than the one I left (was still a good decision but made me cautious about taking a break again).

Take the job. Even if you find another role it may not have the work life balance you are enjoying currently. If the redundancy money is six months salary it will be pretty much gone in 6 months and you may not have a new job by then. This is not a good time to be looking for a job. Prioritise saving if you think finances will be tough next year, and as said maybe look for a bit of other income, would you be allowed to do a bit of freelance in your spare time? Or would they know or care?

I wondered this too

6 months money is not really enough. Some jobs take a couple of months to recruit to . If it was 18 months then I’d take the punt. What would happen if you don’t get another job, the redundancy runs out and you have to renew your mortgage?

It’s so easy to look at a big lump sum of ££ and be tempted but you’d be giving up your security and great job conditions. I wouldn’t risk it personally.

Before going for the interview I asked my line manager if it will affect the redundancy money if I get offered the role but don’t accept it, she spoke to HR and they confirmed the redundancy money is mine unless I officially accept another internal offer. I haven’t officially accepted yet.

I live with my partner who is a high earner, he thinks I should take redundancy and find another job and he has assured me he will cover all bills for 3 months from July if I’m out of work. After the 3 months he would still help but he would expect me to take a temp job to help cover the bills, until I find a proper job I want. But I don’t want to be reliant on him, especially in a years time when the mortgage increases. I want to be financially independent. We aren’t married.

I’ve actually been offered another internal role today, so now I have 2 sideways offers to choose from. The one I choose will depend on the package - pay, work life balance and if they honour my early finishes, but I need to make a decision COP Monday or both will be off the table. So maybe I don’t interview as badly as I thought?

That actually makes it even more clear that you keep a job. 3 months is nothing in this market and I know plenty of people who are struggling to find a new job right now.

Take the job. Very foolish not to.

Take the job. Its brutal out there.

It would be putting it mildly to say it’s really not a good job market at the moment and we have a Labour government for the next 3 years. I would 100% keep the job.

You are unmarried.
If he wants you to rely on you financially he should marry you.
Keep the job and make sure you are paying proportionally not 50/50.
Since part of the reason you are on the salary you are on is to provide childcare

The job market is diabolical at the moment. Take the job and stability.

It feels as if you want to take the payout. I can see the appeal of an as yet unobtained new job which is better paid and still flexible, plus the idea of some time off and making a large payment on your mortgage.

However new jobs are very hard to find, 6 months of pay won’t last as long as you think, you note you aren’t great at interview and you aren’t married. Being at home alone without money to spend and pressure to find a role won’t be as relaxing as you think.

I’m afraid in these circumstances the risks are much higher than the reward. I would take the new job.

If it's half your salary I would take the sideways move. It's very tricky though.