Learn what voluntary severance is and when you should offer it.

The past few years have been somewhat tumultuous in terms of the labor force. The pandemic led to a massive wave of layoffs, which was followed by a rapid — and somewhat chaotic — rehiring of workers. Now, as businesses face high levels of inflation, a looming recession and economic uncertainty, many employers are rethinking those recent hires and starting to make cuts again.

An obvious and common way to cut labor costs is to lay off workers. According to the Layoffs.fyi database, more than 1,000 tech companies made layoffs in 2022, resulting in more than 150,000 employees being laid off. However, layoffs aren’t business owners’ only option when it comes to reducing their workforce. One alternative is to offer voluntary severance — paying your employees to quit.

Read More