Asked by Joseph Bartmann on May 09, 2024
Verified
Cinergy Inc., a Midwestern gas and electric utility company, needs to reduce its workforce over the next 2 years. The company is offering employees who leave the firm before the age of 65 a bonus equivalent to 2 weeks' pay for every year of employment with Cinergy Inc. In the given scenario, Cinergy Inc. is:
A) increasing job embeddedness.
B) encouraging voluntary early retirement.
C) providing stock options to employees.
D) implementing an involuntary turnover strategy.
Voluntary Early Retirement
A program offered by employers allowing employees to retire earlier than the traditional retirement age, often with full or partial benefits.
- Comprehend methods for workforce adaptation, encompassing staff reductions, executing layoffs, and utilizing contingent labor.
- Distinguish between the concepts of voluntary and involuntary turnover and their impacts on organizations.
Verified Answer
MA
Matthew AnjorinMay 11, 2024
Final Answer :
B
Explanation :
Cinergy Inc. is encouraging voluntary early retirement by offering a financial incentive (a bonus equivalent to 2 weeks' pay for every year of employment) to employees who choose to leave the firm before the age of 65. This strategy is aimed at reducing the workforce in a way that allows employees to leave on their own terms, rather than through layoffs or firings, which would be considered involuntary turnover.
Learning Objectives
- Comprehend methods for workforce adaptation, encompassing staff reductions, executing layoffs, and utilizing contingent labor.
- Distinguish between the concepts of voluntary and involuntary turnover and their impacts on organizations.
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