So much for the Great Resignation and quiet quitting — it’s no longer an employee’s market. And that’s being reflected in return-to-office (RTO) policies and severance packages.
Many companies started offering flexible work arrangements, including remote and hybrid options, during the early days of the Covid-19 pandemic. But now, many of these same companies are issuing RTO orders.
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And if workers don’t like it, they can leave.
Companies like Amazon, Paramount, AT&T, Goldman Sachs and JPMorgan have all enforced an RTO mandate. Microsoft — one of Big Tech’s last holdouts for return to work — is now mandating at least three days a week in the office [1].
NBCUniversal has also jumped on the RTO bandwagon, but there’s a catch: The severance package is a universal, one-size-fits-all payout. It does not give employees any additional money based on their years of service [2].
How a universal severance package works
In September, NBCUniversal notified its U.S. and U.K. employees that come 2026, they must return to the office four days a week — with the option to work remotely on Friday [3].
NBCUniversal employees who don’t want to return to the office can take a flat-rate severance package of eight weeks’ salary and three months’ healthcare coverage.
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This is different from typical severance, which is tied to your years of service and the position you held. For example, you might get two weeks’ pay for every year of service, meaning the longer you’ve been with the company, the more generous the payout.
But there is no federal or state legislation that requires companies to offer severance.
Amazon, for its part, issued an ultimatum: Workers must return to the office at operation centres in Seattle, Arlington, Va., or Washington, D.C. — or resign without any severance at all [4].
Raj Namboothiry, head of staffing firm Manpower’s US division, told Business Insider that if employers start downgrading severance to one-size-fits-all or none-at-all, workers will see no advantage to staying at a company for more than a few years — and that could cost employers a lot in turnover.
But for now, companies like NBCUniversal and Amazon are playing hardball in an employer’s market. Bureau of Labor Statistics data shows that just 22,000 jobs were added to the economy in August while the jobless rate rose to 4.3% (the highest level since 2021).
What to consider before accepting a severance package
While a growing number of companies push RTO mandates, many American workers aren’t enthused about the idea.
In March, the IT software firm GoTo released a survey of 1,000 Americans of whom only 46% agreed with the idea of returning to more in-person work; 35% said they would consider changing jobs if they were forced to go back full-time [5].
In some cases, returning to the office is impractical and will affect quality of life. This includes workers who moved to the suburbs or smaller towns during the pandemic, or arranged childcare around a more flexible hybrid work schedule.
If you’re faced with choosing between returning to the office and taking a severance package, weigh your options carefully. Consider talking to a financial planner before making any moves.
Check with HR to find out what (if any) severance is being offered.
If you’re offered a universal severance package and you’ve only been with the company a few years, it could be a good deal. But if your tenure is not recognized and you’re in a more senior role, you could be shortchanged with a one-size-fits-all severance package.
Consider your health coverage. Under federal law (the Consolidated Omnibus Budget Reconciliation Act, or COBRA), terminated employees can extend their health insurance coverage for a specified period of time as long as they pay their premium. This extension is typically 18 months, so NBCU’s universal three-month coverage may not be sufficient.
If you have three to six months’ worth of expenses saved up in an emergency fund, you’ll have some breathing room while you look for a new job. If not, eight weeks of severance won’t last long.
Resigning could be risky for anyone in this tough job market. According to LinkedIn’s latest Workforce Confidence Survey, more than half of active job seekers have been “on the hunt” for six months or longer [6].
Look at the current job market for your profession or industry. For example, there’s high demand for healthcare workers in the U.S. But for roles that are being replaced by AI and automation, finding a new job may take longer.
Look even further ahead to your retirement goals. Are you on track or are you lagging behind? Does your current employer offer a 401(k) or a pension? Do they offer matching contributions? All of those could be factors in your decision.
Suffering a long commute to the office five days a week may be worth it to keep other workplace benefits.
Article sources
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[1]. Business Insider “Microsoft is officially sending employees back to the office. Read the memo.”
[2]. Business Insider “NBCU’s one-size-fits-all severance package for RTO workers shows just how much power employers have right now”
[3]. Business Insider “Here’s NBCU’s severance offer for employees who don’t want to return to the office”
[4]. Financial Express “Amazon employees asked to relocate or resign without severance”
[5]. GoTo “Despite Return-to-Office Mandates, New Data Shows Americans Still Prefer Remote and Hybrid Work”
[6]. LinkedIn “Workforce Confidence Survey”
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This article originally appeared on Moneywise.com under the title: Some employers are offering reluctant RTO employees severance packages instead — but they come with a catch
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