Voluntary Layoffs

MKT

I am seeking ideas for voluntary layoff inducements and reduction in force packages. Any input will be greatly appreciated!

CuriousG

My recommendation is -don't do it! Rarely do these attempts at cost cutting actually acheive their true goals, and the impact upon employee confidence in your company will be devastating.

Now assuming your course is set, and you will ignore my recommendation, here are some suggestions to try to ease the burden.

NOTE: You will need to work with an employment law attorney to develop a Summary Plan Description for a Separation Program, and a benefits specialist as well.

1) Try offering to enhance employee's sevarance pay by one week's pay for every year of employment with the company. Place a cap on it (like ten weeks or 20 weeks pay)unless you want to loose a whole lot of very experienced people.

2) Try amending your retirement plan for this one time offer to provide an enhancement of the employee's age and service credit-say five years each. This would let anyone within five years of retirement to go ahead and retire with an unreduced benefit at an earlier age. Again, you'll need the help of a benefits/tax attorney to make these amendments.