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

Agree

Definitely take one of the roles you have been offered. 6 months redundancy pay is very low and it’s very likely that the money will be spent by the time you need to remortgage. The chance of you finding another job with the same great benefits is so low.

It's difficult to answer without knowing the figures but it seems the redundancy isn't a mortgage changing amount i.e pay off half your mortgage..

Also your age is relevant. You seem to have excellent working conditions (quite rare) but haven't mentioned pension or holidays. Remember this is the whole package whereas a higher salary in today's climate to have lower pension, holidays and flexibility.

If you like the current company culture then wait for stuff to settle and then start asking what you need to do to get a bigger salary

I would advise taking the better package of ghd2 internaljobsyouhavebeen offered. Should there be another round of redundancies within the company your total continuous service should be taken into account when calculating redundancy payment. As it is, you shouldn't risk being g out of work when your mortgage is up for renewal.

You have 2 objectives which slightly conflict:

1. remaing financially independent, knowing you need to increase earnings next year for mortgage change. Consider whether you can extend the term of your mortgage to limit the monthly affordability - can you add 5 yrs for example if you don’t secure a higher paying job?
2. Take redundancy with a risk approach to securing a new role and retaining the funds for mortgage reduction. This really depends on what line of work you are in and what the market is like, alongside the working conditions you have today.

can you share what line of work you are in?

I work in the digital / marketing sector. From what i have seen, many of the jobs are hybrid - 2 days in office, 3 wfh but it depends.

I am 40 years old and if i remember correctly, my mortgage is already ending around pension age so i dont think extending it is an option.

I work in the digital / marketing sector

I would take the sideways move. This us one of the sectors being affected by AI and I think you’re going to find other companies are making people redundant too, not hiring

If your redundancy payment is 6 months pay, then you’ve only got 6 months to start a job with equivalent terms and benefits before you’re worse off than you are if you stayed.

Given recruiting can easily take three months from advert to start date, that means youve got three months to find that job just to avoid being worse off. Which means you need to find it about now to really see the gains you’re thinking of from a mortgage perspective.

Recruitment timescales are the bit people always overlook, and they can hugely diminish any financial gain you expect to get.

This! Also, not expecting you to share this information here, but it really would depend on the amount of redundancy money, the amount outstanding on your mortgage and how much of a dent the money would make in your mortgage borrowing. If you took the package (if you're still able to do so), is there interim work you could pick up while you look for a job in your field?

I would take the sidewards move. It gives you a bit of financial security and doesn't stop you looking for something else. If you can also get the redundancy payment, that's a bonus

I've been looking for a new role almost a year, redundancy announced May last year, finished September. I apply for 5 jobs a week at least and have had two interviews. Therse are part time roles at half my previous salary. I am now applying for minimum wage jobs as my job seekers allowance has run out so I have zero income. Make the sideways move.

Thank you all, the sideways move is what most are recommending and I need to listen.

I have 2 internal job offers - one is in a different job but still under the ‘digital and marketing’ umbrella, and there will be a chance to learn AI. The other is the same as my current job role but for a different category, so can essentially hit the floor running. Depending if the benefits are the same, I’m struggling to know which to go for…AI experience will be great on my CV but if promotion in the next year is my priority then moving into the same role could mean the road to promotion is quicker.

Which would you go for? Different job with AI or same job?

Without doubt take the job with AI opportunity especially in digital marketing. There will
be huge disruption here in the next few years and being an early adopter will both protect you long term and enable you for promotion.

Ask for a formal training course in AI too to start your learning - there are lots now available.

I say this as as a CIO x

I’d take the sideways move.

The market is tough. Our 26 year old (degree, masters, chartership, experience, great CV) has taken an entire year to get a new job.

(With regret) AI all the way

Do the AI role. It will give you an opportunity to update your skills even if you decide to look elsewhere. It's the buzz phrase at the moment.