We have previously discussed the advantages of voluntary buyouts over layoffs, especially stealth layoffs. Voluntary retirement programs allow employees to self-select, so that employees who are well-situated to enter unemployment can opt in, while employees who need their jobs badly can keep working.
Imagine you’re a legal secretary at one firm who’s married to a high-earning partner at a different firm. You work to keep yourself busy, especially since your kids are all grown, but you don’t need your job that badly. You might take a buyout package and retire a few years early so that one of your fellow secretaries, a single mother with two young kids, can put food on the table.
Voluntary programs are so much better than layoffs — which is why we were happy to hear that rumors of secretarial layoffs at one firm actually turned out to refer to a buyout program. A program with rather generous terms, in fact….