4 ms·
The concept of paying for people to leave does not make sense to me. I see companies doing it, and seems to me that they're doing it so they can reduce headcou
by metafunctor 11y ago
The concept of paying for people to leave does not make sense to me. I see companies doing it, and seems to me that they're doing it so they can reduce headcount without having to actually fire people.
Thing is, the people who will take the buyout will be the ones who are confident that they can find another job. The company is left with the people who don't really care about their job, are afraid they may not be able to get hired anywhere else, or both.
Does this actually ever work?
- spacecowboy_lon 11y agoNo I recall when British telecom had generous voluntary redundancy several years pay plus 6 years pension payments. One guy I know got over £200k mostly tax free They lost a lot of key technical people who took a huge pay off and joined a competitor. And I know that for some specialties (radio planners) who where not allowed to go - the competition brought them out by paying $100,000k starting bonuses.
- jhou2 11y agoIt works for the HR executives in charge. They can reduce headcount without bad PR, with the ostensible rationale that they are cutting the ones who don't have the passion and loyalty for the company.