McKinsey Is Offering Employees 9 Months Salary In Exchange For Leaving Firm

There’s a general slowdown in the economy that’s leading to many job redundancies, but some companies seem to be handling the situation differently from others.

McKinsey is offering 9 months pay and career coaching to employees who wish to leave the firm, British newspaper The Times reported. This move by McKinsey is its latest effort to decrease its workforce in response to a downturn in the sector. Managers in the UK division are being offered the opportunity to devote up to nine months to a “job search” period.

During this period, McKinsey employees will be able to use their working hours to find new jobs instead of working on client projects. They will still receive their full salary up to a period of 9 months. Employees will also have access to Mckinsey’s resources and career coaching services for the 9 month period.

McKinsey had previously attempted to reduce its workforce amid a downturn in the consulting industry. Last year, the company announced plans to cut approximately 1,400 jobs, which accounts for around 3% of its workforce. Additionally, in February, Bloomberg reported that McKinsey had given poor performance ratings to 3,000 employees. These employees are given around three months to improve their performance, or they could be asked to leave the company.

McKinsey is one of the most famous business consultancy companies in the world, and is a sought-after employer at premier Indian B-Schools. In recent times, companies have been generous to laid off employees, giving them several months of severance, and perks like allowing them to keep their company laptops even after they’ve left. But a 9-month salary in order to get employees to quit is nearly unheard of, and McKinsey seems to be treating its people better than most as it looks to downsize its teams.

But the generous severance also likely hints at the pressure that the global economy is currently labouring under. McKinsey provides business consultancy services to the biggest companies in the world, and it would rather pay its employees 9 months of salary than have them continue working with it. In times of economic stress, consultant expenses are amongst the first to be cut — companies look to do away with all unnecessary expenses as they look to streamline their operations. And while McKinsey employees might land on their feet — with 9 months’ salary in the bag, they most probably will — the layoff could be an early sign of some impending turbulence in the global economy.