When faced with voluntary layoffs, compare the cash flows and your expectations of how hard you expect your job search to be. Then add some pessimism to your assumptions. Dear Bob …I suspect I’m not the only one of your readers who has, is, or will have to face the decision I have to make next week: Whether to accept a 20% salary cut or participate in a workforce reduction that includes a severance package.I’ll be honest with you: I’m so upset right now I’m having a hard time focusing — I can’t even figure out how to start thinking this through rationally. I’m inclined to accept the cut, because I’m the sort of person who values security. On the other hand, the severance package is generous enough that if I can find another job I’ll end up with a chunk of cash that would come in very handy right now.I know you can’t make the decision for me. Maybe you could help me think it through, though?– Unhappy, with choices Dear Unhappy …You aren’t facing a wonderful pair of of alternatives, but they’re better than many.To turn this into a rational decision, you should compare the cash flows you’d see out of each choice. In order to do this, you first need to estimate how long you will need to find a new job should you decide to accept the severance package. Then it’s easy. You’d add up how much salary you’d collect if you stay for that period of time. If it’s more than the severance package (adjusted by the COBRA payments you’ll be making to cover the cost of health insurance, and by what you’d receive from unemployment compensation if you’d qualify for it) then you should stay and start looking for work.If it’s less, quit and take the package.Except, of course, it isn’t quite that simple because you also need to take risk into account. If you take the severance package you should also decide what you think the worst case is for a job search. Recalculate based on the worst case. And, if you stay there’s the risk of another round of layoffs, with the possibility that your employer will offer a less-generous severance package to go along with it.Depending on the company, the industry it’s in, and your level of skill and experience I’d suggest you plan in terms of at least a year before you find a new position, and the possibility of another round of layoffs within six months.My guess is that you’ll find you’re best off keeping your job and immediately starting the search for a better one. But that’s just a guess. A generous severance package, coupled with whatever unemployment compensation you might receive, could tip the balance the other way. – Bob Technology Industry