Redundancy – part 1: Preparing for redundancy
A series of case studies on redundancy for executives
Helena is a C level executive in her mid-40s, married with two children. She believes her role is at risk of being made redundant and begins preparing for the inevitable six months in advance.
Helena contacted Equitas Partners and Robert MacLean worked with her on a strategy. Firstly, Robert determined the need for an employment lawyer to coach Helena through the negotiations and review the redundancy calculations and terms and conditions. The $5,000 she spent on legal fees resulted in a $50,000 increased payout and a greater sense of satisfaction that a fair deal had been achieved.
Helena invested in skills by undertaking some short courses relevant to her next career step, attending networking functions and industry briefings, and updating her LinkedIn profile. She also engaged an executive coach and worked with her financial advisor on her preferred timing for triggering the event. By establishing a self-managed super fund and her own income and life insurance, Helena unencumbered her financials from her employer.
The benefits of this strategy were that Helena maintained her relationships with the CEO and the board, and left the company on her own terms. Her insurances continued and she stayed in control of the timing so that she was ready to take the next career step when the redundancy offer was made.