Not what we usually think of as a paid break
November 17, 2008 by Fred HosierPosted in: In this week's e-newsletter, Latest News & Views, That's how they do it in ______
Here’s a problem for HR: Let’s say your business is expected to slow down for several months and then pick up again. For financial purposes you have to trim staff now, but it’d be nice to get these good staffers back when business gets back to normal.
Solution: How about offering employees a paid career break?
That’s what Permanent TSB, one of the largest retail banks in Ireland, is doing.
The bank is taking this action to cover a period when it expects lower business volume from the recession in the Irish economy.
Permanent TSB is offering to pay employees up to 20,000 Euros ($25,400) to take a two-year career break or 35,000 Euros ($44,450) for a three-year break.
The union that represents the bank’s workers has given the plan a cautious OK.
Permanent TSB hopes the career break will appeal to younger workers who might want to travel, according to RET Business.
The bank wants to save training costs by having these employees return after their breaks.
Tags: career break, paid break, recession, training
November 17th, 2008 at 12:32 pm
ill take it:)
November 21st, 2008 at 11:39 am
What guarantees does the bank have in those employees returning?
November 21st, 2008 at 11:52 am
There are no guarantees in life! Sign me up!! I’m sure that I could find something else to do within that time frame if I didn’t get recalled.
November 21st, 2008 at 12:04 pm
Does the bank really expect that those who take the “break” will remember anything they were taught for three years? Some people have trouble remembering their passwords after a long weekend!
November 21st, 2008 at 12:29 pm
Ed 3 is right. How do they know those employees will come back? As good as it might sound, what if you found a job you love, better benefits and better pay; would you want to quit the new job? Probably not.
November 21st, 2008 at 1:06 pm
I would have to imagine the bank would have them sign a contract stating that they will return and if they don’t they may have to repay the money. I can’t imagine them just taking the employees word for it.
November 21st, 2008 at 1:25 pm
What about the 40-year-old with 2 kids and a mortgage to pay? Will $25K U.S. be enough for 2 years? I doubt it. What do THEY do in the meantime? “Hi, welcome to Wal-Mart!” or, “Would you like fries with that?”
November 21st, 2008 at 2:00 pm
My community faces this on a yearly cycle. We are a Smoky Mountain tourist destination with an off season in January, February and most of March. The jobs most affected are unskilled, but not in every case. I am not aware of any retention programs such as this being offered here. Most companies seem to lay off and hope they can find suitable replacements in the spring.
November 21st, 2008 at 4:23 pm
I agree with BD Smith, $25K for 2 years? Can I get my unemployment on top of that, plus draw out my 401K?
November 21st, 2008 at 5:16 pm
The problem here is that there is gurantee these fine folks will return and well they are out collecting from TSB they could be training at another bank and collecting a full salary there as well. If I were the HR manager at TSB I certainly would not be pushing this agreement with upper management.
I wonder if they offer this opportunity to employees to temporarily reduce head count do they have to offer it to everyone to avoid any possible discrimination issues?
November 21st, 2008 at 5:56 pm
I actually think it’s a good idea. Risky, but good. They may never return, but when the bank calls them to come back, and they don’t, all they’ve lost is the money — less than they would have paid in salary probably. On the other hand, if they do return, the bank has their good employees back.
My guess is that even taking the money, the employees are free to take another job. If they want to return (and I probably would if the company was as good as it sounds from this small snippet), they will quit their “replacement” job and return.