McKinsey Offering Senior Managers Unique Paid Leave Package

Companies have long gotten creative when it came to cutting costs and laying off employees during downturns in company revenue.

Now, it's McKinsey’s turn to bring something new to the table. 

In order to avoid harsh criticisms online that often come with mass layoffs, McKinsey is trying something new: giving managers paid leave rather than laying them off with severance. 

Status Symbol: The consulting company has a reputation to uphold as a prestigious company to work for. As a top consulting firm, professionals come to work there knowing that future employment with other companies is almost guaranteed, given the status symbol of the company. Consulting work is often grueling, with 18-hour days and weekend work all but required during busy months.

Reputational Damage: In order to not dissuade top applicants for applying to work for the firm, McKinsey is offering this unique way to trim its workforce without giving reputationally harmful layoff notices to managers. The firm is banking on the fact that other ways of workforce cutting, such as mass layoffs and rescinded job offers, can bring about harmful reputational damage to the firm, which can take months or even years to get rid of.

The Details: Those who are affected will not continue their work duties during this time period; instead, they will collect thousands of dollars while searching for new work. Managers will be given career counseling and resume assistance to those who need it.