IE
EDITOR'S TAKE: What right-minded person would opt for voluntary redundancy at Anglo Irish Bank?
2 November 2009
After long-running media speculation, the inevitable job cuts at Anglo Irish Bank are said to be on the cusp of being decided. We just have to wait for the boss (or the government as it's otherwise known) to give the green light. But, if these redundancies do turn out to be voluntary, it could be a very bad move to accept the offer.
Anglo is likely chop anywhere between 200-500 heads out of a total workforce of 1,700 in Ireland. The method of the announcement to staff, thought to be via a podcast from chief executive Mike Aynsley, rivals Goldman Sachs in its coldness - the US behemoth has a predilection for delivering bad news through voicemail.
There are a number of reasons for Anglo staff to stay put.
Firstly, the relatively paltry redundancy package on the table. The bank is said to be offering five weeks salary per year for the first two years of service and two weeks pay for every 12 months after that.
Yes, this might seem like a slightly attractive offer to the younger, and therefore not as well-paid staff, but with other job opportunities scarce, how long is this going to last them? And, as these figures pale in comparison to redundancy packages offered to executives at international banks, how many senior staff will step forward? It's doubtful many more will want to fall on their swords.
Now, putting aside the fact both Bank of Ireland and AIB are still posting losses, licking their wounds and unlikely to offer many opportunities to redundant bankers for some time to come, Anglo staff face another problem – not many firms locally want to employ them.
It's a sad fact of life that having Anglo Irish Bank on your CV carries a stigma that few firms can currently see past. As one Anglo employee told the Irish Times: "Previously, when employees were asked where they worked, they would say Anglo Irish Bank. Now they say financial services, or insurance or some even lie about it completely."
Still, this reluctance to hire Anglo staff is not universal. Financial services recruiters tell us that at the junior and mid-level, and particularly within operational areas, experience at the bank is not frowned upon.
Which brings us to the final insult to Anglo employees. Imagine you accept redundancy, and then apply to just about the only institution recruiting in any significant capacity – Nama. You face the choice of either taking the job at Nama or accepting the redundancy package, but not both.
You could argue that it's only right that the government doesn't foot the bill of redundancy payments only to eventually employ that person again under a different guise. But, this really removes the human element.
What you're essentially doing is creating an environment where a good number of talented financial services professionals face the stark choice of switching sectors or leaving Ireland to pursue opportunities elsewhere. And, in the long run, the industry will suffer.
