How Companies Treat (ex)Employees

Posted at December 30, 2009

Yesterday I read an article titled Qwest ending death benefits for retirees in ‘10.

This is clearly a business decision, and probably a smart one. Qwest has not been without it’s financial problems, and cutting almost a quarter billion dollars of debt is good for the company’s health and the shareholders.

But here’s the scary part: the message that Qwest is sending (granted, the article is very short, so I don’t know all the details) is this: no matter what we told you before, we’re cutting it off.

Like when I heard a few years ago about companies that terminated pensions after you reached a certain age. Maybe that was an urban legend, but it contributed to employees losing respect and loyalty and trusting companies.

If I worked at Qwest I would have to question what benefits I’ve been promised that will still be around when I retire. Or, after I retire, and I think I have a benefit for life, will it actually be for life??

Let’s go back to the idea that this is a business decision. The problem with this business decision (from a business decision perspective) is that employees were essentially promised these life-long benefits. Imagine you are 24 or 34 or 44 and you are making a decision to work at Qwest or another company – one thing you weigh is what you get… and Qwest is offering this (and probably other) lifelong benefits.

That would absolutely affect my decision (do I work at Qwest, or the other company).

So if I’m 24 or 34 or 44 and I decide to work there, and that’s one of the major reasons why, and then they cut the benefit later, that seems very unfair. Deceptive. Maybe even bait-and-switch.

I’m not saying that’s what Qwest is doing (again, it’s a business decision) – but to me, as an employee, I lost trust and respect in anything else they have said.

Think about any and all messages you send to current and past employees – whether it’s when you terminate them, or years after they’ve retired, or when they’ve only worked there for a few years.

You want good branding, strong loyalty, and all that stuff, right?

Your message has to earn it.

(one way to earn that good branding and strong loyalty is to help people when you terminate them – hence, Affordable Outplacement (and outplacement in general)).