Communicating the Voluntary Retirement Scheme

Communication plays very important role in the effective implementation of VRS. Communicating a VRS to the employees is a rather delicate subject and needs to be handled very carefully.


The notice announcing a VRS plays a crucial role, it should most definitely sound positive. It should neither expressly nor impliedly give out the message that the employees are useless and that they are being dispensed with. The notice should state that the employees have contributed significantly to the growth of the Company, however, owing to recessionary times, low sales etc. the Company is having a hard time keeping costs under control and therefore is compelled to introduce the VRS. Also, that the scheme is mutually beneficial should be expressed clearly.

2. Expectations of Employees:

Employees who may be willing to leave will be keen to know the VRS amount and benefits. They would also be anxious to know the exact legal dues such as Gratuity,Pension,PF options available for investment and medical facilities. Emphasis should be made on these aspects in detail in the communication.

3. Means of Communication:

It is highly recommended that the Scheme to be discussed at length in a  meeting, which should have in attendance the concerned executives and the Business Unit heads . The Scheme should be examined and made subject to questions so that all the aspects of the same are clear to everybody. The executives should, most importantly, be assured of the management’s full support. Persuasion of the Scheme may sometimes lead to complaints from the workers/ Union and they may even approach the Government Labor office and other Government authorities. Concerned executives should be briefed in this regard and informed that fulfillment of VRS targets will be considered in evaluating their performance. The concerned executives and the representative of the HR Department should be able to answer questions by them

Employees on Investment options, Funds available and legal dues.

Options of Investment:

All possible options of investment should be made known to the workmen. A group of executives should be made available at a particular time, at a particular place to give a patient hearing to the questions and concerns of the workmen and provide the right guidance to the concerned persons. A separate cell may also be established to handle these issues.

Group Meetings:

The Management should arrange for group meetings and individual meetings of all the people who have opted for the VRS Scheme for exchange of ideas and clearing doubts.

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