For this post, I will be sharing my thought on whether an employee should take up the VSS or MSS offer.
Retrenchment caused by COVID-19 pandemic
This post was first published on 15 August 2015 where job cuts happened globally especially to huge corporates.
Since early January 2020, I noticed there’s an increase in visitors to this page. Most probably due to the COVID-19 pandemic, some employers were forced to reduce headcounts.
I know how tough it can be for those undergoing retrenchment.
Personally, I had experienced two retrenchment exercises. I still remember those terrifying and demotivating moments.
Even though I survived both retrenchments, those were tough times. But, there are good lessons learned as well. I share it in my other post: How to deal with retrenchment.
Compared to all the retrenchment exercises before, this time around, the retrenchment caused by the COVID-19 outbreak is quite different. Because the COVID-19 outbreak is affecting us all globally and across all industries.
For that, employee’s employment affected by the COVID-19 outbreak should really consider a wider point of view before making a decision. Do consider a deeper point of view too.
The COVID-19 outbreak looks like still a long fight for everyone.
Voluntary separation scheme (VSS) and mutual separation scheme (MSS)
In May 2015, I read a sharing by Alice Yokyuen-Wong on The Star Online. It is an article on whether one should take up the VSS or MSS offer.
I strongly feel that those affected by VSS or MSS should read it too.
Why? Because the sharing is from her own experience where she took her previous employer VSS offer. Most importantly, there is a lot of truth in her sharing.
In her sharing, she shared that she budgeted her expenses tightly after the VSS. Even though she had received the compensation sum from her VSS employer. Because she said she is not sure how long she would be jobless.
She is lucky because she got her new job just 28 days after being laid off.
But now that there is a COVID-19 outbreak. Generally, most employers are removing headcounts, not adding headcounts.
Can someone still get employed after being laid off? Or how long she needs to wait for the new opportunity?
Should you take up the VSS or MSS offer?
Based on her sharing in 2015, there are strong reasons employees should take up the VSS or MSS offer and move on. Rather than sinking together with the ship.
In which she shared that two of her friends who had worked in a public listed company for more than 20 years were not paid a single sen when their employers went into liquidation.
The simple reason was there was no more money in their companies’ accounts. That is very sad to know.
If these two friends had taken up the offer earlier, at least the compensation would last for some time while they are looking for new opportunities.
Rather than rejecting the VSS or MSS offer, the friends choose to stay back with additional workloads. And eventually left with nothing when the company went into liquidation.
Again, employees affected by retrenchment should really consider the whole picture before making the right decision for themselves.
Considerations before accepting or rejecting VSS or MSS offer
In my personal opinion, these are things you can consider before deciding to accept or reject the VSS or MSS offer:
1. Check and understand the compensation plan
Firstly, you must check and understand the compensation plan. Especially on the compensation and benefits calculation.
See if there are ways you can negotiate for a better compensation plan such as extended employee benefits.
If needed, you can get help from trusted parties such as the Department of Labor and the National Human Resource Centre.
Based on the compensation amount, do your own calculation to see whether the amount is worth it.
Should you decided to take up the offer, do make sure the compensation amount is able to support you and your family for a sufficient amount of time. Please do not underestimate because sometimes it can be hard to land a new job.
2. Consider the future of your current job if you decided to stay on
Should you decided to stay, do consider the future of your current job in the next few years.
Get some quiet time and ask yourself these questions:
- What will happen if another VSS or MSS offer surface in the next few months?
- Can I have a better package somewhere else?
- How about the additional responsibilities with more workload due to smaller team?
- What if the company no longer operate and has no fund for future compensation?
- Am I happy to continue working here?
- Is there a pay cut?
- Do I still have a future working in this company?
The above are just some of the questions which can help you to make a better decision.
Since you are in the company itself and also in that particular industry, you should be able to know the whole situation better.
Read more: Why do employees leaving the corporate world
Final thoughts
Are you affected by retrenchment, VSS or MSS? And unsure whether to accept the offer or not? I believe everyone’s situation is different and unique.
Do take time to list down all the pros and cons of both options. Then, make the best decision based on your own unique situation. And plan ahead for your path.
Read more: Emergency Account – How Much Do You Need?
