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Chapter 14. Bye-Bye Buddy > When a Team Is Downsized - Pg. 177

Bye-Bye Buddy 177 Who Goes? Who Stays? The decision is made to downsize the department. You, the team leader, are ordered to cut two people from the team. Which two? There are several ways in which downsizing is implemented. Many companies offer an early re- tirement option. Employees who have been with the company for a specific number of years are offered a financial settlement to retire early. For example, JosE9 has been with the company for 22 years. He is 60 years old and can retire on full pension at 62. He is offered full pension benefits if he retires now. Rebecca is 50, but she's been with the company for 20 years. Under the pension plan, she could retire at age 50, but receive a much smaller pension. She's offered a bonus if she opts for early retirement. Heads Up! Be careful about how early retirement offers are made. If the implication is "accept early retirement or you'll be laid off anyway," the company would be in violation of the age discrimination laws. Seniority is often the company policy in determining who is downsized. In most union-management