What's your price for a buyout?

[lightning]

There's a rumour going around at my place that some senior faculty will be offered buyouts this fall.

I can be bought, and everyone has their price. I'm sure my price is too high, but I'm curious . . . . .

What's your price? Two years' salary? Three? One? A fake gold watch and steak knives?

[Parasaurolophus]

I've never thought about it. At a glance, two years seems insufficient--I'd be relatively comfortable with five, I think, and I guess I could make three or four work. But I'd really have to believe that my writing was on the wall.

[AmLitHist]

I can only drool over the idea of a year or more's pay as severance incentive. I just looked at our most recent offer (2021).  We had the option of:

1.  Full insurance coverage (i.e., both the employee's and college's portion) for up to 24 months--based on one month of coverage per full year of employment.  (In my case, if that were offered today, it would be worth about $2200/month for 20 months); or

2.  1.5% of the employee's current base salary x the number of years of FT employment, UP TO a maximum of $30,000. (For me today, that would be about $24K.)

So, not jack-diddly-squat, though if it happens again tomorrow I'd jump to take the insurance (as it would bridge me to Medicare coverage).

Crappy as the options are, though, I have to admit that things are sufficiently rocky here now that I'm eagerly awaiting another VSIP (voluntary severance incentive plan) offer. (I do have the advantage of having a good pension waiting, with about $200K available to me right now as a partial lump sum, plus a guaranteed monthly net payment of about 75% of my current take-home. I won't get much in SS since I haven't paid in for the past 20 years.)

I lived poor for a long time before getting this job, so I know how to do it and can do it again. I just didn't expect to have to go back to living that way after working my ass off (in grad school and on the job) all these years. Still, I know I'm way better off than a lot of people, so I guess I should STFU.

[Parasaurolophus]

AmLitHist... I thought it was supposed to be an incentive. 0_o

FFS!

[apl68]

I'm an at-will employee, so I guess the best I could expect would be two weeks' notice.  But where would they get somebody else who could/would do the job for what I do it?  I feel pretty secure, so long as the library remains open.

[bio-nonymous]

If I was at retirement age already (quite a ways to go yet--but visible out there on the horizon!), and thinking about it already, at least 1 year salary severance pay (better yet 2) would possibly help make my decision to pull the trigger easier. My place recently did that, but the caveat was that the department where someone takes that option would lose that faculty line! So, it kind of screwed your colleagues over. I am not sure how many folks took the bait (and to heck with their co-workers that can now do more with less!).

[EdnaMode]

If I were closer to retirement and they offered a buyout, I'd take no less than one year's salary, would prefer two, but the most important thing would be to keep my insurance at employee rates until I'm eligible for Medicare. My insurance isn't amazing, but it's okay and the cost is reasonable. I've lived below the poverty line before, and don't wish to do so again. I could continue to do the consulting I already do to bring in additional income or would look for an industry job, or if all else fails, go work at a bookstore because I always thought that would be fun, though I'd probably make excessive use of my employee discount and spend most of my income on books.

[secundem_artem]

I've posted it in another thread, but 1-2 year's salary?  What Daddy Warbucks College are you folks working at?  In the past, Artem U has offered a bag of chips.  And if you really complain, they'll throw in a pack of gum. Seriously, the crap offers they've made to date would only be of interest to those given a terminal diagnosis by their physician with a 3 month life expectancy.

[dismalist]

It's useful to distinguish between "offer" price, or willingness to pay, which depends on how badly they want to get rid of you and how much cash they got to do it, and the "bid" price, or willingness to accept, which depends upon our personal idiosyncrasies and which is the subject of this thread.

It's hard to say anything systematic: Every institution will differ in its offer, and every individual will differ in his willingness to accept. Thus, the difference between the two -- the surplus -- will differ. One can fight over the surplus, but not more.

However, there is something that can be said about the apparently weird structure of the offered incentive. When the idea of paying faculty to leave started, it was often in the form of a cash emolument to leave. So, who took the option? Only the best faculty! They got new jobs right away. Employer was left with a bunch of losers. Thus, more sophistication: Pay only enough and in a form that the oldest leave. And so on.

There! Now you know why one can be unhappy. :-)

[Vkw10]

I'd take 6 months salary, a year of health insurance, and payout of my 240 hours of accumulated annual leave. That would cover my lease buyout, moving expenses, and living costs until I found part-time job in fast food.

[spork]

Every few years my employer issues an early retirement offer in the form of "Up to X faculty members with Y years of service get Z times their salary if they leave." X is always less than 10. Z tops out at 1. Y is usually something like 25.

[. . .]

the department where someone takes that option would lose that faculty line! So, it kind of screwed your colleagues over.

[. . .]

The situation of former colleagues should not be one's concern. The faculty line will not reappear because you've worked until you've dropped dead in your office at age 93.

[AmLitHist]

I've posted it in another thread, but 1-2 year's salary?  What Daddy Warbucks College are you folks working at?  In the past, Artem U has offered a bag of chips.  And if you really complain, they'll throw in a pack of gum. Seriously, the crap offers they've made to date would only be of interest to those given a terminal diagnosis by their physician with a 3 month life expectancy.

I fear this might be the level of our next buyout offer!

The running joke among long-time faculty here is to reminisce about the truly wonderful food we used to get at every event--even things like academic council meetings:  in-house gourmet cookies, taco bars and salad bars, gourmet sandwiches etc.  Nowadays we're lucky if we get warm tap water and a package of stale saltines. (We usually don't get anything.)

[spork]

[. . .]

The running joke among long-time faculty here is to reminisce about the truly wonderful food we used to get at every event--even things like academic council meetings:  in-house gourmet cookies, taco bars and salad bars, gourmet sandwiches etc.  Nowadays we're lucky if we get warm tap water and a package of stale saltines. (We usually don't get anything.)

Spork Snack Index: University quality is indicated by its snacks.

I knew my employer was headed for eventual extinction when post-event snacks consisted of some store-bought cookies set on a table at the end of a hallway -- which had been designated the reception venue on very short notice.

[Ruralguy]

Our phased retirement plan is basically just a delayed buyout at 1 yrs. salary. Honestly, if I am ready to teach for 10 years, I'd start by asking for 10 years salary. I'd be laughed out of the office for that, but that's my initial bargaining position.

[Wahoo Redux]

I think I posted this somewhere else, but the buyout at my wife's uni was targeted at specific departments in two successive waves.  First year 100% of 1 year's salary.  Second year, when everyone was good and scared, was 80%. I think almost everyone took the buyout because the threat, never put in writing, was that it was buyouts or retrenchment because of enrollment declines.