NEW YORK (2/19/08)--Bill Hampel, chief economist with the Credit Union National Association, gave advice Sunday to The Wall Street Journal
readers in an article about whether employees should accept buyout packages offered by employers. Sizing up a buyout offer “is more complicated than buying a house, and most people don’t get practice at it,” Hampel told the paper. “This is something where a professional financial consultant can help you do the arithmetic. “If it would be fairly easy to relatively quickly get a fairly similar job with a fairly similar salary, that makes it almost a no-brainer” to accept the buyout, Hampel added. Otherwise, employees need to run the numbers, he told the paper. Other considerations brought up in the article by Andrea Coombes include:
* Whether employees can still receive employer-funded health care; * Whether employees will be laid off later with no benefits if they reject the buyout offer now; * Whether the company goes bankrupt soon after the offer; and * Whether employees let fear guide their decisions--they shouldn’t because sometimes a buyout is an opportunity to start a new career or business.