The Question

In 2023 I decided to take a voluntary severance package after working for the same company for 18 years. It was one of the best decisions I ever made. Now, just two years later the company is going through a restructure again.

Working for a multinational multi-commodity mining company it used to be that these cyclical restructures happened every 7 - 9 years, but as with every else, it seems that the frequency of change is accelerating. Over the past year I’ve been documenting my grown-up gap year on social media and I did a series of podcasts with people who have taken conscious breaks from work.

So, I guess it was inevitable that when my ex-colleagues were told that they would be subjected to yet another company restructure, that some of them would phone me to ask for advice. The question being:

Do I stick it out, or do I take a severance package?

My Company Restructure Madness

The 2023 culling wasn’t my first rodeo. I had gone through similar upheavals in 1999, 2008 and 2014, so I had been a participant and spectator in this type of political circus several times.

In 1999 I was on assignment in China when the company restructured and the message I got was either stay in China, or go home (to Johannesburg) and be retrenched. There was a man involved, so I went home. He broke up with me the day I got home…wrong choice, but that’s a story for another time.

In 2008 it felt like all of the madness was happening to me. All I could do was to play the game, apply for positions and hope for the best. I was completely at the mercy of the politics and drama and the whole soap opera of who’s safe and who’s not?

In 2014 I couldn’t afford to lose my job due to being freshly divorced, family commitments and being in debt. But, in 2014 I watched people who had options, make clear-headed decisions and I resolved to have options the next time around, which is why I could leave in 2023.

Stay or Go?

For some people, who’s roles have become redundant there is no option, but to try and make the best of a bad situation. If you are in the fortunate position to make a choice (of staying or going), there are a number of things to consider, and this is the advice I gave to my colleagues.

In the moment, when you feel like you are in the middle of restructuring tornado, when you are poring over role profiles considering which jobs to apply for, witnessing the true natures of your colleagues coming out - from despair to deceit - it is easy to say: “To hell with this. I am leaving!” But, sit back, take a breath, and think:

Are there people who are dependent on me?
What is my financial position?
What is the job market like?
Are there other opportunities in the company (which I could apply for) that will expand my experience and skills?
Can I survive (or even thrive) here until the next round of restructuring?
If I can take break, for how long? And, how will I use this break?

Dependents

When your boss is sitting in front of you, an inexplicably smiling HR lady sitting next to him, reading restructuring T&Cs off a script, his face devoid of emotion (this is the last restructure I went though)…you might feel like just a number, just a little block on a not-yet-filled organogram. And this might make you sad or angry or sorry for your team members who are going through this for the first time, but consider your kids or elderly parents and whether you can stick it out for their sake. Once this disruption has passed there are ways to create little islands of sanity for yourself. When I went through the 2014 restructure I had elderly parents who needed me. I needed to play-the-game, apply for positions and stay positive. That was all there was to it. But, that whole experience also kicked off my planning to be in a better position the next time around.

Financial Position

(Disclaimer: I am not qualified Financial advisor, but I strongly advise that you get one)

If you are scared of spreadsheets or trying to make sense of compound interest makes your head hurt, here is where you need to (wo)man up or get help. You need to understand your net worth, your cash-flow position and for how long you can be without a job if you are planning to take a little break from it all. For my 2024 sabbatical I was supported by an amazing financial advisor who helped me to move my investments around and ensure that they were safe and growing in the background, while I spent only my sabbatical budget. Confession: I do admit to being a bit of a spreadsheet freak when it comes to my personal finances.

Seriously though, it is important that you know what is going on in your own finances. Sticking your head in the sand is really a poor strategy when it comes to your own life. There are many books, articles and websites that can help you to sort out your budget, help you to become debt-free and work towards financial freedom.

(Personally I have found great value in Ann Wilson’s The Wealth Chef and the advice of Mr. Money Mustache)

Job Market

This one may be self-evident. If you are working in an industry that is going through a slump, you may be one of many (for example) mechanical engineers that will soon flood the job market. It is a good idea to be aware of job opportunities in other companies and what people are paid on the other side of the fence. Theoretically, if you are a scarce skill the company won’t get rid of you, but I have also seen in two of my restructure rodeos where the company gets rid of technical people and leaves the massive HR department in tact…but lets not go there since my HR friends might get upset. The question is will you easily find a job somewhere else where they will appreciate your efforts more? This is where it is good to have built up your network of industry acquaintances.

Can I survive here?

When I survived the 2014 restructure I was fortunate to end up in a team I loved. Yes, there was still survivor’s remorse and being part of the old guard as opposed to the new (supposedly better) blood brought in from Australia, but I liked the work. My job had changed and I was in the middle of deploying the new CEO’s strategy, so I thrived in this new environment. That restructure was not bad for my career at all, and even though I knew in the back of my mind not to get too comfortable in that commodity uptick, I made the best of being on top of the wave. So, it is possible that you can find a home, a new team and a better job as a result of a restructure. I think it comes down to re-framing your situation and your attitude.

Do I want to take a break?

This is my favourite one, since I’ve just completed a year-long sabbatical, and I can’t recommend a deliberate, purposeful pause to your career highly enough! If you have addressed all the questions above and you are in the wonderful position to take a break, be it 3 months or a year it is such an amazing gift to yourself. I went into my sabbatical with a plan, which meant the time was spent fruitfully. I’ve come out of that year with new friends and an abundance of energy to build my business and live life according to my values and rules.

Conclusion

If you are considering putting your hand up for voluntary severance during a a company restructure, the question-stack above could provide you with some guidance. I hope I’ve helped you just a little bit with making this crucial decision.

Good luck out there!

If you are on the threshold of a big change in your life, be it stepping up in your career or taking a sabbatical, I am happy to guide you through the process. Book your first (free) 30min do-we-have-chemistry session here.

On Change

Should I stay or should I go?