Author Topic: Maneuvering for an early retirement severance  (Read 6733 times)

friedmmj

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Maneuvering for an early retirement severance
« on: June 26, 2015, 01:18:13 PM »
This may come across a wee bit shady, so I'm looking for some of your reactions.  I'm 48 and hoping to retire at 55.  I've served in a series of mid-level executive management positions for the last 15 years.  I'm a fairly hard worker and have a steady record of accomplishments with good raises, reviews, etc.

I've been giving some thought to the strategy of angling to being offered a "retirement package" as opposed to a straight resignation when the time comes to quit.  The general idea is that as I approach the desired exit date, I drift toward becoming more of a liability to my company instead of an asset.  Nothing malicious, just a drift toward "dead wood" status.  I've seen other executives (most of whom have a long track record of being dead wood) retiring early and I assume most of them have been encouraged to do so with a nice financial incentive thrown into the deal.  The company is strong and growing so it is not likely that there will be a downsizing any time soon that would make this type of exit easier to accomplish.

Have any of you experience with this type of strategy?  Any advice is welcomed.

trailrated

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Re: Maneuvering for an early retirement severance
« Reply #1 on: June 26, 2015, 01:33:07 PM »
Reminds me of this
Quote
http://www.financialsamurai.com/how-to-make-money-quitting-your-job-2/

Also the thread discussing something similar that you might be able to benefit from. http://forum.mrmoneymustache.com/ask-a-mustachian/get-fired-on-purpose/

Case

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Re: Maneuvering for an early retirement severance
« Reply #2 on: June 26, 2015, 02:01:52 PM »
This may come across a wee bit shady, so I'm looking for some of your reactions.  I'm 48 and hoping to retire at 55.  I've served in a series of mid-level executive management positions for the last 15 years.  I'm a fairly hard worker and have a steady record of accomplishments with good raises, reviews, etc.

I've been giving some thought to the strategy of angling to being offered a "retirement package" as opposed to a straight resignation when the time comes to quit.  The general idea is that as I approach the desired exit date, I drift toward becoming more of a liability to my company instead of an asset.  Nothing malicious, just a drift toward "dead wood" status.  I've seen other executives (most of whom have a long track record of being dead wood) retiring early and I assume most of them have been encouraged to do so with a nice financial incentive thrown into the deal.  The company is strong and growing so it is not likely that there will be a downsizing any time soon that would make this type of exit easier to accomplish.

Have any of you experience with this type of strategy?  Any advice is welcomed.

It does across as a wee bit shady.  You're an executive; when is enough enough?

AZDude

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Re: Maneuvering for an early retirement severance
« Reply #3 on: June 26, 2015, 02:12:03 PM »
Not a wee bit shady, very shady. Dont be an ass.

frompa

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Re: Maneuvering for an early retirement severance
« Reply #4 on: June 26, 2015, 02:19:56 PM »
Hmm. I don't find this shady.  In the world of work (in the US at least) the flow of loyalty goes only one way -- from the employee to the employer, and screw the employee otherwise.  (It didn't used to be this way, but such is a "market-based" work economy.)  If you want to give 1000% (I'm not making a typo) only to be replaced at the drop of a hat by your employer, go right ahead, but I personally think such an attitude is extremely naive.  No one but you is going to take care of yourself, and you are far best off knowing your limits and your goals, and planning accordingly.

You don't have to be dead wood, but only a less than hyper-willing-to-do-anything wood, to be less than utterly attractive to your employer.  Frankly, few of us retain the ability to work like at maniac in our fifties, like we did in our thirties.  So slow down and consider yourself as pacing yourself so you can last to fifty-five.  It's the mature thing to do, and nothing shady about it.  Personally, I applaud your ability to take the long view of your place in the work, and to not let yourself be manipulated into working yourself into a tizzy perpetually.  Good luck.

cripzychiken

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Re: Maneuvering for an early retirement severance
« Reply #5 on: June 26, 2015, 02:32:01 PM »
completely counter-point, but an old coworker of mine wanted to retire and be given a retirement package, so he stopped helping people, accepting extra assignments, working OT, etc.  His work was still it's normal level, but he did the exact job he was paid for and nothing more (to the point of calling facilities to replace the empty coffee can rather than just walk over and grab on from the supply closet).  After 2-3 months they gave him a small bonus for "being able to focus on his core work and ignoring the extra noise in the workplace".

But I'd say do your job, just stop doing more than your job.  You are a number to the company, not a person - so do what they pay you for and let some younger upstart 'force you out'.  Hell, try to help groom the next guy (or agree to stay on for 2 months to help groom the next guy for an additional xx months of severance).  Main thing would be don't be a dick to the people who work for you.

deborah

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Re: Maneuvering for an early retirement severance
« Reply #6 on: June 26, 2015, 02:54:46 PM »
I've seen more people given a "retirement package" when they've worked hard than when their work has dropped off. Often it seems like it is a sort of "thank you for working so hard".

friedmmj

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Re: Maneuvering for an early retirement severance
« Reply #7 on: June 26, 2015, 02:57:05 PM »
Thanks for the feedback.  The main reason that I am unlikely to ever follow through on this strategy is that I don't want to dump work on other people or affect my team's morale.  It just seems unfair that the guys who have been mediocre for the last 20 years get sent off with a fat severance or retirement sweeteners while the hard workers get a pat on the back and a handshake.

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Re: Maneuvering for an early retirement severance
« Reply #8 on: June 26, 2015, 03:13:13 PM »
In a recent downsize/restructure at my company, some were given packages, but a lot of the highly compensated dead wood was moved back into grunt positions to presumably "encourage" them to move along.  At that point, I'm guessing they could have just been fired if they didn't perform.

Coasting when the end is in sight is pretty natural but 7 years of coasting probably a bit much.  12-24 months is probably what I would consider the "norm" .  Unless your company has a strong history of offering packages, I probably wouldn't "angle" for one.  Not matter what you think the company might "owe" you, purposefully creating animosity is never healthy, and may cost you more emotionally and physically than a package would gain, especially if it goes on for 7 years.  You have always been, and will continue to be, free to go somewhere else at any time. 

If you are fully vested, a better strategy may be to get a new job with a higher salary, options and signing bonus.  Work a few years in a new/stimulating/challenging environment then go out with more knowledge, contacts, and money than you would have ever had otherwise.       

nobodyspecial

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Re: Maneuvering for an early retirement severance
« Reply #9 on: June 26, 2015, 03:13:30 PM »
Nothing malicious, just a drift toward "dead wood" status. 
You have to get the balance right, too massively incompetent and you risk promotion

okits

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Re: Maneuvering for an early retirement severance
« Reply #10 on: June 26, 2015, 08:12:59 PM »
Nothing malicious, just a drift toward "dead wood" status. 
You have to get the balance right, too massively incompetent and you risk promotion

Ha ha ha ha!

OP, if you feel you have been treated fairly (or even well) by your company, don't spend too much time and energy on this.  If you have received fair compensation for your labour plan to resign with a big smile and a light heart.  If you are not being treated well why not leave now for greener pastures?

taekvideo

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Re: Maneuvering for an early retirement severance
« Reply #11 on: June 26, 2015, 10:40:56 PM »
Nothing malicious, just a drift toward "dead wood" status. 
You have to get the balance right, too massively incompetent and you risk promotion


friedmmj

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Re: Maneuvering for an early retirement severance
« Reply #12 on: June 27, 2015, 07:57:22 AM »
Nothing malicious, just a drift toward "dead wood" status. 
You have to get the balance right, too massively incompetent and you risk promotion

Ha ha ha ha!

OP, if you feel you have been treated fairly (or even well) by your company, don't spend too much time and energy on this.  If you have received fair compensation for your labour plan to resign with a big smile and a light heart.  If you are not being treated well why not leave now for greener pastures?

Sound advice.  Thanks.

SnackDog

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Re: Maneuvering for an early retirement severance
« Reply #13 on: June 27, 2015, 08:18:39 AM »
I know senior executives who have left prematurely for family reasons, health problems, harassment, and to take jobs elsewhere.  Normally if there is not a down-sizing in progress there is not a package available.  You need reliable information. Your former co-workers may have been fired rather than offered a package. Take a couple of them out for drinks and ask for advice.

If you really want to get shady, see if you can record someone making inappropriate remarks (preferably regarding your age, sexuality, ethnicity, etc) then get yourself fired and follow up with a lawsuit. This is how the pros do it.  Most companies will settle to avoid a messy public suit.  I think companies that tolerate such nonsense deserve to pay for it.

 

Johnny Aloha

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Re: Maneuvering for an early retirement severance
« Reply #14 on: June 27, 2015, 08:47:35 AM »
completely counter-point, but an old coworker of mine wanted to retire and be given a retirement package, so he stopped helping people, accepting extra assignments, working OT, etc.  His work was still it's normal level, but he did the exact job he was paid for and nothing more (to the point of calling facilities to replace the empty coffee can rather than just walk over and grab on from the supply closet).  After 2-3 months they gave him a small bonus for "being able to focus on his core work and ignoring the extra noise in the workplace".

Just like office space -- I love it!

nobodyspecial

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Re: Maneuvering for an early retirement severance
« Reply #15 on: June 28, 2015, 10:24:10 AM »
If you are not being treated well why not leave now for greener pastures?
I'm being treated badly but I'm a key employee and so have to give 3 months notice to leave - that is not going to be a pleasant 12weeks.
But if they were to fire me they have to pay 3 months salary.

Time to stop wearing pants .....

The Accidental Mustachian

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Re: Maneuvering for an early retirement severance
« Reply #16 on: June 28, 2015, 10:51:04 AM »
Oh god, i couldn't think of anything more soul sucking than deliberately doing less than my best effort. I know that makes me sound like some sort of boy scout, i'm not, but i do think spending two years deliberately under performing would be awful.You might get what you are after but i reckon you will have paid a high price.

cripzychiken

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Re: Maneuvering for an early retirement severance
« Reply #17 on: June 29, 2015, 06:44:56 AM »
If you are not being treated well why not leave now for greener pastures?
I'm being treated badly but I'm a key employee and so have to give 3 months notice to leave - that is not going to be a pleasant 12weeks.
But if they were to fire me they have to pay 3 months salary.

Time to stop wearing pants .....

You only have to give 3 months if you want to ever use them as a reference in the future.  If you're planning to RE or a jump to a completely different field, who cares about the bridge - especially if they are already treating you like crap.

ender

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Re: Maneuvering for an early retirement severance
« Reply #18 on: June 29, 2015, 06:56:11 AM »
Oh god, i couldn't think of anything more soul sucking than deliberately doing less than my best effort. I know that makes me sound like some sort of boy scout, i'm not, but i do think spending two years deliberately under performing would be awful.You might get what you are after but i reckon you will have paid a high price.

I have thought that it might be a better exercise to attempt to do literally no value-add work for as long as possible. I think in many large companies you could get away with this for a looong time.

At least that'd be more interesting than trying to be mediocre :)

tn3sport

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Re: Maneuvering for an early retirement severance
« Reply #19 on: June 29, 2015, 09:19:46 AM »
Keep in mind it is easy for a company to let you go with NO severance if you are let go for performance reasons. If the company can prove your performance has dropped off, you would have very little legal recourse for claiming severance. It might also put your unemployment claim at stake. So, avoid getting a low performance rating as a strategy.

Having said that, I see what you are considering quite frequently. I have colleagues that have even put in for a transfer to a retirement friendly state a year or two before they execute their plan for early retirement. Then, once their moving and living expense agreement is complete (usually 12 months), they back down on their productivity and start doing the minimum to get by in hopes they are selected for the next retirement package.

There once was a very large IT company (Its initials are 3 letters...) that had a decent sized facility in Hawaii.  It was very common for people near the end of their careers to seek a transfer to the Hawaii branch. Then, they worked themselves out of their job and took the next available retirement package, living happily ever after in Hawaii...  Finally, a reasonably astute executive manager closed that branch. He was hated by many for doing that but I'm sure he was praised in the ivory towers for addressing that issue and ultimately saving the company money.

I think a better idea is to let your first line manager know you would be willing to take an optional leave if cutbacks or a package came out. i.e. Assume a manager is told to let 10% of his/her staff go. It really makes it easy on that manager if they know they already have a volunteer.

mandy_2002

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Re: Maneuvering for an early retirement severance
« Reply #20 on: June 29, 2015, 10:12:43 AM »
Keep in mind it is easy for a company to let you go with NO severance if you are let go for performance reasons. If the company can prove your performance has dropped off, you would have very little legal recourse for claiming severance. It might also put your unemployment claim at stake. So, avoid getting a low performance rating as a strategy.


A friend of mine works at a very large US company in California as a manager.  He inherited a very poor performer.  This man couldn't do his job (every assignment had to be spoon fed to him, with multiple iterations), was unable to properly communicate in English (and the manager couldn't force him to improve his English), and had been passed from manager to manager for nearly 10 years because no one wanted to do the work to fire him.  It took 18 months of documentation, improvement plans, and hand holding to finally get the HR and legal department's approval to fire.  This was a foreign employee over 50, so they were and still are worried about the possibility of a discrimination lawsuit.  On the day he was fired, he reported a neck strain that had "happened" several months before and had never been reported, so the manager, while firing him, had to fill out a workman's comp request.  He was extremely excited that this did not prevent the firing.