Today’s labor market is tight, even here in worker-friendly California. Thus, if your company is guiding you toward an exit strategy, few can rely on a golden parachute to cushion the blow of sudden unemployment.
In truth, golden parachutes were only offered to high-level executives whose companies were involved in takeovers and mergers. This was to offer them a painless transition into their next opportunity.
What opportunities do lower-tier employees and labor have?
While golden parachutes are indeed rare, companies may still offer long-term non-executive employees “silver” and even “tin” parachutes as encouragement to go quietly on to their future positions. Learn more about these designated severance packages.
The lure of a silver parachute
Those employed in mid-level management positions may be offered lesser severance packages in the event of unplanned job losses. These typically can make a padded landing easier while still offering fewer benefits than those enjoyed by corporate executives.
What do tin parachutes offer the rank-and-file?
About the most value offered in a tin parachute is a full-year’s salary, sometimes padded with additional compensation for each year worked. While all severance agreements should be legally reviewed before signing and acceptance, this compensation package is likely to be the only offer available on the table.
Are there barriers to acceptance?
There can be, which is why it’s prudent to get a professional opinion on the terms. For instance, if the tin parachutes contain stringent noncompete agreements, they could effectively place you outside the local labor force for a year or more.
In those cases, it could make more sense to turn down the severance package and strike out on your own to find the next job available in your chosen field.