Why Employers Want to Minimize Your Trouble

 
 
By Deb Perelman  |  Posted 2008-03-20 Email Print this article Print
 
 
 
 
 
 
 


 

9. Why Employers Want to Minimize Your Trouble

So why are your employers being so nice to you as they send you packing? The reasoning lies deeper than various federal statutes that keep them from doing otherwise. It is just as likely that they're trying to save their reputation and legal position.

"If they get pennywise or foolish and don't handle this well, they've bought themselves long-standing employee relations blemishes on their reputations. Years later, I hear candidates saying that they don't want to work for a certain company because they remember what they did to their employees," said Hoffman.

The same goes for the departing worker. They may be asked to take part in an exit interview, but there is no law requiring them to do so. But experts will advise them to be courteous just the same--when the employer gets back on their feet down the road, they might be glad they didn't burn that bridge.

10. What the Recession Will Mean for the Laid-Off

As the U.S. economy continues to edge into a recession, it is unfortunately likely that the pink-slipped population will increase. Even worse, what is offered to employees as they are shown the door might slip as well--such as severance negotiations.

"It depends on the company. If it is in relatively strong economic shape and they're just adjusting their expenses to avoid problems in the future, they're likely to continue with their normal severance packages. But if the company is in the middle of a financial crisis and doing everything it can to survive and avoid bankruptcy, it may reduce its historic severance benefits. Legally, it can do this, or not pay severance at all," said Warren.

But these companies put themselves at a much greater risk for lawsuits, and open themselves up to even higher legal fees. It is for this reason that even if significantly diminished during a recession, almost all companies will offer some token.



 
 
 
 
 
 
 
 
 
 
 

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