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Best practices for navigating voluntary employee buyouts

by M&Co. Staff

This article, featuring comments from Montieth Illingworth, was originally published in Ragan Communications.

How internal communicators can balance asking people to leave while keeping those who decide to stay engaged.

Offering voluntary buyouts to employees, like what Microsoft did last month, raises a lot of challenges for internal communicators.

Although the voluntary nature of the proposal may generate better press than layoffs and help companies avoid accusations of wrongful termination, the problem lies in nudging someone to leave while making sure they remain engaged if they decide to stay.

An internal memo announcing voluntary buyouts at Google last year, obtained by CNBC, illustrates this tension perfectly:

“I want to be very clear: If you’re excited about your work, energized by the opportunity ahead, and performing well, I really (really!) hope you don’t take this! We have ambitious plans and tons to get done,” wrote Google senior vice president Nick Fox. “On the other hand, this VEP offers a supportive exit path for those of you who don’t feel aligned with our strategy, don’t feel energized by your work, or are having difficulty meeting the expectations of your role.”

For Montieth Illingworth, CEO and global managing partner of Montieth & Company, when an employer offers a voluntary buyout or early retirement package, there’s no going back. As soon as the message appears in an employee’s inbox, the expectation that they still have a job because the company values their work begins to erode.

“The implicit contract has essentially been damaged,” said Illingworth.

Read the full article at Ragan Communications.

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