Voluntary redundancy - your experiences?

scoobie

Hi ,

Like many others I am sure I am weighing up whether to take voluntary redundancy.

Interested in knowing other people's experiences with taking voluntary redundancy and getting new work.

How do you find new employers treat the fact that you took voluntary redundancy? Do they look on it negatively?

Did it effect your salary negotiation? One thing I have found is that employers try to match or beat your current salary when applying for a new job. But if you've left your job have people found that their next job pays a lot less?


I'll get approximately a year's worth of salary if I volunteer to leave my current job (less than I'd like but not to be sniffed at), but I will loose out on 20% pension contribution for that period and company car cash scheme. If I do volunteer there is no guarantee they'd accept, but there is a general scheme in operation.

Benefits I see for me from voluntary redundancy are:
- taking a 6 month break
- using that time to do up and sell a house I have inherited. As the house is not near were I live, I am finding it hard to manage alongside work.
- I was planning on leaving my current job in the next year anyway, and have been applying for other jobs periodically. I had two interviews in the past year, though my experience has been so far that its pretty tough going out there job wise.
- I don't like where I work now, but maybe its better the devil you know.... but I do like the salary

Negatives
- I have a pretty decent salary £56K and 20% contribution pension in my current role, so if I leave I might find this hard to match elsewhere.
- I had wanted to buy a bigger house when the housing market bottoms out - because I'm trading up it makes sense to wait. If I'm not in employment, I clearly wouldn't be able to get a bigger mortgage.

I am single and don't have a lot of pressing financial commitments especially in light of the inheritance

jazzyman01

Hi

VR not usually looked on negatively. Issue is getting another job in current climate - especially if you know you are well paid and your pension contributions are very generous.

Benefit is that you were already looking to leave and you will get a tax free payment which will stretch your payment out a bit. Also, as you will be taking 6 months out, you are likely to get a rebate too.

LindsayO

Another thing to consider is whether or not your current employer is likely to bring in compulsory redundancies, and whether the terms for voluntary redundancies might change anytime soon

mluton

I took VR back in November last year after an 11 years service at a engineering company. Also the same week I was given the option for VR we found out we were exspecting.

Best decision I ever made. I decided I wanted to change career and secured a job within a week with no qualifications in my new career.

I did suffer a massive 8K loss on yearly salary changing career, but the 10K redundancy payment paid off all debts, paid for a deposit on a newly rented house and put 5K into a savings account.

I have a career I love now and savings, in a lovely rented house and a new baby. I earn alot less now, but dont pay any debt each month, so I'm better off.

bristol_pilot

I took VR, but not until I had another job lined up. Finished on the Friday and started the following Monday, with a higher salary and £30k tax-free in my pocket. Never told the new employer about the VR.

In the current climate I'd make sure the new job was in place first tbh, no six month break.

scoobie

LindsayO wrote: »

Another thing to consider is whether or not your current employer is likely to bring in compulsory redundancies, and whether the terms for voluntary redundancies might change anytime soon

There are both compulsory and voluntary redundancies now. And more expected next year. An unknown is whether the terms for redundancy will change, they have changed them once before in the past couple of years. There are a lot of cutbacks on perks at the moment, so redundancy terms could get another thrashing but I just don't know

scoobie

bristol_pilot wrote: »

I took VR, but not until I had another job lined up. Finished on the Friday and started the following Monday, with a higher salary and £30k tax-free in my pocket. Never told the new employer about the VR.

In the current climate I'd make sure the new job was in place first tbh, no six month break.

That was my plan, I found a job I wanted outside but I didn't get it. It is so difficult to get the timing right in the current climate.
At the moment I have no job applications pending so I think it will be a least 6 months to find new work

henm01

I took VR after working 20 yrs. Redeployment was offered but too far away. I really worried about taking the VR but have now decided it was the best thing to do after weighing up job security (travelling miles) v the cash.

I have found another job and will start as soon as I leave this one. It is for far less money than I currently receive but closer to home etc etc. The salaries offered are def less, especially if you have been working for the same co for a long time and risen through the grades. I will start at the bottom again.

I felt VR was my only choice. Since the VR's a number a number of staff have been made CR. Difficult times.

Good luck.

roversbabe

Am in a similar position and still deciding - good luck with whichever way you go.

hula-hoops

VR was offered at our company and I took it. The department I work in was being scaled down and my area of expertise was being scrapped so my options were VR or working in an area I am not too familiar with. My reasons for taking VR were:

- I felt that the company was obviously struggling if they were making sales roles redundant so it was a case of get out now while you can

- I needed a change anyway. I had considered resigning on numerous occasions and so this fitted in nicely as I would get a nice pay-off for it.

- The atmosphere changed dramatically in the company and there was a constant fear of 'who's next?'

In the end, I volunteered and my offer to volunteer was accepted. I have never told an prospective employer that my redundancy was voluntary. Someone had to go - the fact that it was VR for us was just a means to an end. It I hadn't taken VR then maybe I could have found myself in the situation of CR anyway.

Our company took the approach that anyone who wanted to take VR should be accepted. They felt, quite correctly, that if people want to go then they should be allowed to go. There would have been a lot of bad feeling if people had volunteered and then not been selected.

reheat

I opted for VR just over a year ago ... just before anyone knew the credit crunch was on the way. Did some contracting work for a while, and only then got into serious job hunting once the credit crunch was really starting to bite and unemployment starting to rocket. Been pretty grim along the way and if I'd known then how the unemployment situation was going to get ... I very possibly would have made a different decision. Not nice going round ASDA wondering if you'll have the money to buy food for the family in the not too distant future. Or pondering if you might be able to move some of your more treasured belongings to relatives if the bailiffs become a threat.

I naively thought I would get 2 or 3 interviews a week and a job within 10 interviews. In reality I got 3 interview in the first 8 months, and only once I got a decent CV did the other 5 interviews turn up within the next 3 months. You have to get the interview rate up, no interviews equals no job. And interview rate is down to getting a good CV (you really do have to put time and effort into this) and getting it to as many relevant people as possible.

Thankfully I've just got myself a great job shortly before the money ran out. Interview number 8. That's my (and my family's) experience.