Thoughts on business school, economics, NC State, and everyday life from an economist at NC State's business school
Thursday, May 3, 2012
First blogging, now TV
WRAL-TV interviewed me Tuesday about the new IBM retirement buyout package and it ran on the local 6 p.m. news. Video clip is here. IBM is offering older workers a deal where they can get 70% of their pay while working 60% of a full-time schedule provided that they agree to retire by the end of 2013. IBM's incentives are clear:
Shed some employees and avoid severance pay
Replace high-paid American workers with lower paid Americans (or outsourcing)
Gain some predictability in workforce planning
The offer is voluntary, although some workers who fear being laid off may take this deal on the grounds that it could be the proverbial offer they cannot refuse. For a cynical reaction from a "Dead American IBMer Walking," click here.
Steve Allen is Associate Dean for Graduate Programs and Research in the College of Management at NC State University. He has appointments in the Department of Economics as well as the Department of Management, Innovation, and Entrepreneurship. Steve also is a Research Associate of the National Bureau of Economic Research, a non-profit research organization located in Cambridge, Mass.