Voluntary redundancy: Difference between revisions
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The difference between voluntary redundancy and other programmes is that VR often is offered to a selected age group. For example, everyone between 40-50 years with atleast 5 years experience. |
The difference between voluntary redundancy and other programmes is that VR often is offered to a selected age group. For example, everyone between 40-50 years with atleast 5 years experience. |
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A world wide company which used a VR programme is Ericsson. They offered the programme to 17 000 employees in Sweden between the age of 35-50. They received 12-16 months full payment, 50 000 Swedish crones and a course in entrepreneurship and/or job hunting support. |
A world wide company which recently used a VR programme is Ericsson in spring 2006. They offered the programme to 17 000 employees in Sweden between the age of 35-50. They received 12-16 months full payment, 50 000 Swedish crones and a course in entrepreneurship and/or job hunting support. THe goal was that a maximum of 1000 employees would accept the programme. |
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Revision as of 16:36, 30 November 2006
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Voluntary Redundancy (VR)
Definition of the concept A financial incentive offered by an organization to their employees with the purpose of attracting volunteers to leave the organization, due to downsizing or restucturing situations. The purpose is to get around union employee regulation laws.
Reasoning
A Voluntary Redundancy programme is often not driven by short time revenue goals. In contrary it's rather a question of strategic choices to, for example, change the age structure within the company. It's quite often said that Voluntary Redundancy is a consequence of a company’s lack of structural capital which is a part of the intellectual capital (IC). According to research people that accept voluntary redundancy tend to return to the company after a while, and influence the company with new ideas.
The difference between voluntary redundancy and other programmes is that VR often is offered to a selected age group. For example, everyone between 40-50 years with atleast 5 years experience.
A world wide company which recently used a VR programme is Ericsson in spring 2006. They offered the programme to 17 000 employees in Sweden between the age of 35-50. They received 12-16 months full payment, 50 000 Swedish crones and a course in entrepreneurship and/or job hunting support. THe goal was that a maximum of 1000 employees would accept the programme.
Jivmark 10:39, 29 November 2006 (UTC)Joakim Bengtsson & Erik M Jivmark