How voluntary exits can help employers cut costs while protecting workers
The federal government is moving ahead with a major early retirement initiative for public servants, sending information about a voluntary early retirement program to nearly 70,000 employees as part of a broader plan to shrink the core public service over the next few years.
The measure is tied to the government’s objective of cutting jobs largely through attrition rather than involuntary job cuts, with a one-year program “expected to launch in January.”
Anil Verma, professor emeritus of organizational behaviour and human resource management at the Rotman School of Management, explains that Canadian employers have long turned to early retirement programs as an alternative to layoffs, and is generally considered a “more humane” approach: “This is a voluntary program, and hence it's considered superior because each person can see how it fits their own priorities and they can act accordingly.”
When employers look to target older workers with early retirement options, the risk of perceived age discrimination may be front of mind – Verma distinguishes sharply between voluntary and forced approaches when it comes to these concerns, pointing out that the key is ensuring that the offers are genuinely voluntary.
“There is a very non-discriminatory reason for making this offer to older workers, because they have more accumulated savings and they can get a higher...
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