4 questions to ask if you're offered a late-career buyout
CNN is offering buyouts to older employees with several years on board.
To cut costs, Time Warner Inc. has reportedly made a buyout offer to Turner Broadcasting employees over the age of 55, who have been with the broadcaster for 10 years. Offering buyouts in advance of other cuts is a common strategy.
Here are a few things to think about if you're an older worker — but not one who's ready to retire — considering a buyout offer.
1. Do you really have a choice?
In other words... "The first thing you have to consider is: Why is the company doing this? And what is the probability of their asking me to leave, one way or another?" says Robin Pinkley, a business professor at Southern Methodist University.
In this case, Time Warner has already told employees that other cuts will follow the buyouts— maybe 15 to 20 percent reductions, according to one story. So if you’ve got any worries about getting laid off, you might want to take the buyout.
In a case like Time Warner, the buyout won't be enough to retire on, at just a bit better than the standard severance package. Though, that could help fund a job search, which is likely to be no picnic.
2. Are you ready for a tough job search?
Looking for work after a mass exodus from your workplace is especially hard, says Pinkley.
"It’s not just you who’s entering the marketplace at this time," she says. "There are a bunch of yous."
People with your same resume, who took the same buyout you did. Your company’s probably targeting well-paid older workers because they hope cheaper 28-year-olds will make good replacements.
3. Are you ready to deal with age discrimination?
"It’s a fact that age discrimination exists," says John Challenger, CEO of the outplacement firm Challenger Gray and Christmas. "I don’t think it’s as virulent as it was, say, a decade or more ago, but it’s still there."
4. How do you feel about temp work?
Greg Simpson, who leads the career transition practice at Lee Hecht Harrison, offers a glass-half-full perspective. He acknowledges the chance of walking into a similar job, with comparable pay, without having to move, is low.
However, he says, companies do need people. Just not full-timers.
"They’re looking for alternatives to hiring on full-time labor," he says. "If you’re open to making alternative arrangements with an employer, there’s an enormous talent shortage."
So, if hustling for short-term contracts sounds like a fun way to spend the next few years, that could be an option.
If that sounds grim, just be thankful it’s not 2009. "People are coming into a much better job market than it's been for some time," says Challenger. "It's been getting better, consistently, slowly, over the last few years."