Apr 7, 2009 7:52 pm US/Eastern
Recession Advice: Furloughs May Help You Keep Job
If Your Employer Offers Time Off Without Pay, You May Want To Take It Instead Of Facing Costly Alternative
NEW YORK (CBS) ―
In four months 2.6 million jobs have been lost.
Many employers say they're still not ready to hire, but they're focusing on keeping their current headcounts. Instead of firing, they are offering furloughs.
Lynette Seymour's boss gave her a choice: lose her job or take unpaid time off
to save it.
"It was an opportunity to sort of step up," said Seymour, a bookstore manager.
So Seymour agreed, along with 350 co-workers. It was a move that saved their employer more than $500,000 and allowed them to keep their jobs.
Seymour's company is not alone. A new survey found 10 percent of businesses questioned said to avoid layoffs they're asking workers for voluntary furloughs.
"Transportation, in retail, electronics, manufacturing -- almost any industry you can name as well as a lot of government agencies, colleges, universities," workplace psychologist Marie McIntyre said.
Some companies are asking for a week off; others offer a few furlough Fridays. Seymour got to decide the amount of time, but experts say before you volunteer make sure you can afford it.
"If you're having trouble making your mortgage payment or putting food on the table, that's not the time you want a pay cut," McIntyre said.
Also consider how the furlough will impact your pay, health insurance, seniority, vacation time and retirement benefits. And get it all in writing, said workplace attorney Garry Mathiasson.
"If the total number of weeks or hours lost is great enough, it could adversely affect your accumulation of time on a 401(k) plan or on a pension plan," Mathiasson said.
Career counselors advise that if you do take a voluntary furlough, use the time to start a new job search because layoffs may not be far behind.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
World's Most Useless Facts
Click to enlarge
Stumble It!
Reporting
Comments