Your experience adds value! Companies may not properly appreciate the wisdom and experience of their elder employees, but neither can they discriminate on the basis of age. What happens when a company wants to close down one of its branches or restructure? Perhaps a company simply wants to slim down or cut costs. That company may face its largest hurdles with letting go its eldest workers.

Here in Louisville, Humana has decided to offer an exit package, but only to employees over the age of 50. Their offer contemplates two weeks of compensation per year of service, which tops out at 52 weeks of pay.

If this seems like a meager offer, then consider it a starting point for negotiations. No doubt Humana wants to offer someone who has worked for five years merely 10 weeks of compensation. This is fewer than 100 days of pay. In return, Humana may dodge prospective liability under age discrimination laws. These cases can be costly for companies and cost them many years of lost wages, in addition to the legal fees for defense.

Moreover, the cost to Louisville at large following Humana’s departure will toll in the millions of dollars. Humana would like to shift the employment burden on Louisville’s business community to employ so many. At this stage, should not Mayor Greenberg or the Louisville City Council present alternatives? Louisville is not a passive participant in the Humana story, and Louisville’s officials could rally to convince Humana to stay, or at least leave a substantial portion of its offices in Louisville.

Putting aside collective or political solutions, Humana workers who qualify for these packages might try probing Humana’s resolve; counter-offers may come as high as three to four times the compensation provided for in these packages. The value proposition to Humana would be strong enough to make it worthwhile for the company to consider. Although Humana may refuse to negotiate entirely as a matter of policy, asking for more seems unlikely to create any harm. Humana workers interested in the buy-outs will want to secure work ahead of accepting them, and interested elderly workers could be open with Humana about further time needed to look for alternative work.

In any case, Humana’s move signals immense weakness. Its elderly workforce offers it skills, knowledge, and a fidelity that younger workers might find it difficult to match. Its a dire circumstance when a company strips itself of assets because of potential obligations, especially when those assets are the company’s talent, the very people who create value for it everyday.

Elder workers at Humana with options might look elsewhere, leaving Humana to ponder why it would prompt its most talented among its elder workforce to go.

DISCLAIMER: The information provided by here is for general informational purposes only. All information on the Site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, or reliability of any information on the Site. Reading this blog does not create a legal relationship, nor may reliance on the contents of this blog lead to any liability. If you wish to rely on professional advice, you must contact an attorney for a formal and individual consult.