Take 3 mo severance or work 3 mo?

[BMWTurboDzl]

You've been given the option of taking 3 mo severence in a lump sum or working for 3 mo. You are probably going to exit your industry entirely because it's in free fall.

Would you continue to work and look for a new job under the premise that it's easier to find a job if you can say you're working?

 

[tbm5690]

I doubt you'd have issues securing employment while that fresh out of work, especially given it was a layoff and not a performance issue. I only question I would have in taking the severance would be whether or not benefits are the same...I assume health coverage would be lost? That alone might make it worth staying on.

 

[cptbarkey]

What is the benefit for working for 3 months? Continued benefits?

 

[Cropduster172]

I doubt you'd have issues securing employment while that fresh out of work, especially given it was a layoff and not a performance issue. I only question I would have in taking the severance would be whether or not benefits are the same...I assume health coverage would be lost? That alone might make it worth staying on.

You'd still, at very least, have continuation of benefits entirely at your expense through COBRA.

 

[Patman]

I would take the severance and then immediately get to work finding another job. That way if you find another job right away you have that bonus three months where you’re basically getting paid twice! Otherwise if you just wait until the end of the three months you could find yourself with a gap where you might not have any money coming in at all for a few weeks or a few months until you find a new job

 

[Patman]

Or you could just do what I did after I got let go from my last job. I got 7 months severance and just said to heck with it and retired

 

[RhondaHonda]

You'd still, at very least, have continuation of benefits entirely at your expense through COBRA.

Also, you don’t need to pay for COBRA right away. You can pay for it retroactively 60 days or more after loss of employment. I’d take the severance and start looking for a job and hope to double up on pay.

 

[KrisZ]

Take the severance and start looking. You will be ahead of most people this way. Most will likely chose to work until the end, so there will be a large group of people suddenly looking for work.

 

[demarpaint]

Take the money and run to another job.

 

[TomYoung]

If working preserves health insurance benefits, then I would keep showing up. Otherwise, use your severance time to look for work. Let's say you work for the next three months (for free) and do not have a new job secured. Your situation would be considerably worse. Keep your relationships strong, but working for nothing detracts/delays preparing for the future.

 

[spasm3]

I would take the severance, that gives you the freedom to spend the next three months all day, applying and interviewing for another job. That would be difficult to arrange if you are still working.

 

[BMWTurboDzl]

I doubt you'd have issues securing employment while that fresh out of work, especially given it was a layoff and not a performance issue. I only question I would have in taking the severance would be whether or not benefits are the same...I assume health coverage would be lost? That alone might make it worth staying on.

Their benefits would be the same. Health insurance for the next 3 months.

 

[BMWTurboDzl]

What is the benefit for working for 3 months? Continued benefits?

The concern is getting passed over a new job because you're not working.

 

[BMWTurboDzl]

I would take the severance and then immediately get to work finding another job. That way if you find another job right away you have that bonus three months where you’re basically getting paid twice! Otherwise if you just wait until the end of the three months you could find yourself with a gap where you might not have any money coming in at all for a few weeks or a few months until you find a new job

Well you would be looking for a new job during those 3 months. The concern is getting passed over because you would not be currently employed.

 

[BMWTurboDzl]

I would take the severance, that gives you the freedom to spend the next three months all day, applying and interviewing for another job. That would be difficult to arrange if you are still working.

They would still have the ability to look for a new job. The company is not busy.

 

[shortyb]

How old are you? If you're not anywhere close to 59 1/2, or being able to retire/collect Social Security, I would take the severance and run. That way if the bottom drops out before decide to leave, and they lay you off, the severance offer might not be on the table anymore. Take that time to look for something else and still get "paid". As for health care, I would skip COBRA unless you have real health issues that you would depend on a benefit plan for. I'm on my wife's insurance after retirement, and will use it for major health care issues, but I joined the local APC (Advanced Primary Care) facility that did the direct care for my former agency. I pay $60 a month and can get primary care for just about everything including meds for $0 out of pocket. It does not compete with, nor it it health care insurance. Works for all the small things I need and is becoming a viable alternative to traditional health care through an employer. Good luck.

 

[cptbarkey]

The concern is getting passed over a new job because you're not working.

This perception matters little as long as you are looking. My father took a low paying job at 7/11 the moment he was laid off in 94 from Unisys. I'll do the same so I can at least bring in "something."

 

[ecotourist]

Can you negotiate for benefits during the severance period (eg health coverage)? The severance agreement is often not as cut and dried as the employer implies. In general they want a position gone with as little fuss as possible, and that can include a few extras. I've even seen an employer allow severed employees to use copy machines and office equipment during the severance period.

One feature of severance agreements that I have seen is that if you start work at a new job during the severance period your severance pay stops. Ensure that isn't part of the agreement.

 

[burbguy82]

You've been given the option of taking 3 mo severence in a lump sum or working for 3 mo. You are probably going to exit your industry entirely because it's in free fall.

Would you continue to work and look for a new job under the premise that it's easier to find a job if you can say you're working?

I am sorry to hear of your situation. I can in some ways relate to it, although my situation is different.

What industry?

I suppose I would take the severance, that way you could focus more on a new gig. I dont know what you do, but if you are a competent worker bee, you probably, partially immerse yourself in the job....thus making it more difficult to think on other things, which will be more important later on.

 

[KrisZ]

One feature of severance agreements that I have seen is that if you start work at a new job during the severance period your severance pay stops. Ensure that isn't part of the agreement.

OP said he’s going to get a lump sum, so there is no impact on how soon he finds a new job.