Redundancy vs applying for new role-help!

I’ve been in a bit of a tricky situation to say the least this week. Essentially I’m at risk of redundancy, however there is also a new job available to one candidate. This is a step up from mine with a c. 10% pay increase. There are 5-6 in the redundancy pool and most are opting for a payout rather than applying for this job as they’re either not qualified enough or want the lump sum and hope to find another job.

I’m likely to be offered the new job. For representative purposes, I won’t discuss real salary but it’s on the high end and let’s say my current salary is £75k. The new role is about £8k more. If I got the new role it offers obvious job security, the company and team are still very good and id instantly be in a more senior position, having a lot more say and reporting directly to the ceo.

The second option is a protected conversation and pay off worth 11-12 months of salary. Whilst highly attractive and whilst I’m a good candidate with a strong reputation, the job market at the senior end in my field is tricky and I’d probably struggle to even match my current salary and likely would need to take a big drop. Even if I took a £20k drop the pay off would cover the difference for 4 years and I’d hope to go up the ladder again and of course hope this new job would be my ideal role.

My overall thinking Is to go for the new role and hope I get it. I’m risk averse generally and thinking about my career future and my next property purchase, where I want as high affordability as possible (considering c 4.5x salary) and of course as strong a salary as possible to help me.

If I don’t get the job I do still have the pay off I can take but I’m trying to make the right decision. My notice is 6 months and going for the role whilst giving me the above, means no lump sum and potentially missing a great opportunity.

Any advice appreciated!!

Replies

  • sturgeonsturgeon Forumite
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    Worth clarifying I need to interview and be accepted for the job (but should only do so if I’m certain I want it).
  • getmore4lessgetmore4less Forumite
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    One issue to watch is giving up redundancy rights if you "apply" for the job because applying implies it is suitable.

    If at the end of the process you get offered but decide you don't want it they could refuse to pay out.

    It may not apply in your case(and sounds like it from what you said) as many companies are decent enough to not try to stitch people up but I would approach the new opportunity as part of mutual consultation to decide if it is a suitable alternative and you both want to go ahead.

    Be very positive that this is right for you and the company unless something negative comes up

    post 2 is a bit of a catch 22 your need to be sure needs you to engage as if you are sure till something comes up that changes that if it can't be fixed

    One advantage of taking on the role and being able/wanting to do it is next time round longer service, higher salary and improved CV.

    There is the potential longer term downside you have to judge is companies generous payouts can disappear if it starts going down hill and the last out can end up with just statutory.

    From what you have written sounds like you want it but not sure.
    When companies are making changes it is always a good idea to look at the bigger picture to asses the future, things like why are they looking to get rid of people, if it makes sense and not something that won't get fixed then that can be OK.

    If it all looks good then unless you have or get a clear opportunity elsewhere staying may be the best option at this time.
  • sturgeonsturgeon Forumite
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    Thanks for your advice. At one point I’d waiver my right to an enhanced payout if I applied for the role by way of an interview and then Didn’t get it. I spoke to them about this as that then meant a financial risk if I actually applied, whilst I know they think I’m a strong candidate. They’ve backed down and now offered the enhanced payout if I don’t get that job after interview. Of course, if I do apply I need to be sure I want it as rejecting at that point will both cause them issues and then likely mean my redundancy will be at risk having declined a suitable alternative.

    My preference is to apply and hope I get it, as it’s a promotion, job security, more money and as tempting as a big pay off is, I’d be very unlikely to match even my old salary in a new job and face all the uncertainty of unemployment and job seeking. I’ll still need to deal with that if I am unsuccessful though.
  • getmore4lessgetmore4less Forumite
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    I would be concerned if they thought applying for the job and failure results in loss of payout.

    The fall back for any internal job application should be you stay in your old job.

    In a redundancy situation it should be assessment as a suitable alternative not an application.

    At senior levels this often get blurred with enhanced packages and settlement agreements.

    Can you turn this round selling yourself to where you are the only right one for the job out of those available and too risky for them to go external.

    It should get to they either want you or not.
  • sturgeonsturgeon Forumite
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    I’d have thought as my old role is deemed redundant that no, I don’t fall back into it. They’ve created this new role due to duplication of work across previous roles. It’s only offered to people in this redundancy process and they will not be hiring externally for it.

    I have sold myself a huge amount this week and there’s probably only one other candidate. There’s one job so for fairness they’re insisting on interview.
  • getmore4lessgetmore4less Forumite
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    The fall back would be your old job which would be redundancy with a payout.

    They should be treating this as a potentially suitable alternative using a selection process which can be anything, including interview and asking the potential candidates if they are interested.

    Anyone not selected should not be disadvantaged.
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