What Is Voluntary Turnover?

A voluntary exit plan refers to a human resource policy that provides preferential treatment to employees who voluntarily leave the company under the circumstances of economic downturn, difficult business transformation and slow structural adjustment. The purpose is to cut company expenses, reduce costs, and ease the company's economic pressure. Voluntary separation plans are a common method used in layoffs, but they are fundamentally different from layoffs.

Voluntary separation plan

Voluntary separation plan

Voluntary separation plan is a human resource means adopted by enterprises to reduce expenditures and reduce costs. Most of them appear in the economic downturn and enterprises.

In the company's voluntary separation plan, generally, certain financial compensation will be given to employees who voluntarily leave. You can refer to the following calculation formulas:

Voluntary separation plan is

In foreign countries and Hong Kong, China, in times of economic downturn, voluntary departure plans are often used by companies. In China, foreign companies use this method more often, and domestic companies in China generally do not adopt the practice of voluntary resignation, even if the target is not very broad.

Voluntary Separation Plan Disney

Disney announced that it has issued "voluntary departures" letters of intent to 619 company directors and higher. Disney's external statement said that due to the impact of the financial crisis, the theme park's tourist traffic has declined. The company hopes to use this to cut costs. These 619 employees work in Disney theme parks in the United States, covering almost all of Disney's departments. On January 21, 2009, Walt Disney Company launched a voluntary retirement plan involving more than 600 people in the United States. All employees involved are members of the management level above the director level. The company said the move was intended to reduce costs and ease downward pressure on passenger flow.

In a public statement, Goodman, global vice president of public affairs at Disney, said that in the current environment of continuing economic instability, businesses such as theme parks must be managed more efficiently. The company also said that employees can decide whether to accept the voluntary termination plan by February 6. If too few employees leave the program voluntarily, the company will consider introducing a layoff plan. In a letter from the Human Resources Department on January 22, the company revealed that it needed to adjust management staff at all levels to reduce costs. This voluntary separation plan will begin in mid-February and end in March.

Voluntary Separation Plan Dell

On December 9, 2013, Dell, which had been privatized, launched a "voluntary quitting plan" for employees, requiring employees to decide whether to sign a buyout agreement by December 20. Dell said that if employees don't have the same "passion and enthusiasm" as executives for creating the next era, they'd better change, otherwise they'll take the money and leave.

Voluntary Separation Plan Alcatel

Bell Alcatel (ASB), established on May 28, 2002, is the first foreign-invested joint-stock company in China's communications industry. At the founding ceremony of ASB, ASB Chairman Yuan Xin had announced that ASB would continue to increase R & D staff on the basis of 5,000 employees at the time, and stated that it would not lay off staff. However, on October 9th, four months later, a letter to all employees from the company s president, Yang Android, expressed the message: The downturn in the world telecommunications market continues ... The Chinese market has not been spared, The market has shrunk more than everyone expected, so ASB faces the same challenges as other telecom equipment manufacturers ...

From the standpoint of preparation, it is clear that ASB has also invested a lot of energy in the "voluntary separation plan". They set up a 16-person leadership group, a 4-person coordination group, and a 6-person working group to implement the plan.

The plan to persuade employees to leave the company is nominally open to all employees: "As of October 25, 2002, ASB employees who are in the process of compiling a labor contract system can apply." Not much time is left for ASB employees to choose. "The application time is 12:00 noon from October 9 to 19, 2002". The entire plan will be completed on October 31.