A slick and devious way to underreport layoffs in the corporate world - “ask employee to resign”
Many organizations and tech firms are going through rounds of layoffs and only some are making headlines in the media. The reason why a large percentage of layoffs are going underreported is because managers aided by their HR partners have come up with a crafty carrot-and-stick way of asking employees to resign. This technique is probably a variance of Voluntary Retirement Schemes (VRS) that have been refined by organizations over the years and remain highly popular because: They reduce financial burden by retiring senior, higher-paid employees, thereby lowering overall costs. Senior employees often have negotiated benefits such as better retirement contributions and health insurance, which may have been "grandfathered" and are not available to newer employees. Retirees are typically replaced with younger, lower-paid workers, further reducing salary expenses. While offering a VRS package incurs some upfront costs, companies justify it based on the expected return on investme...