In case you are falling for their assurance that this is only for those who "don't think this job is for them" translation "those who are on or fearing performance CAP's"... Here's the reality:
Why they are "encouraging" those people to take the Voluntary Resignation Separation Package (VRSP) instead of outright firing them:
- Avoiding Unemployment Payouts
• If they fire someone for performance reasons, that employee could still file for unemployment benefits, and the company might have to pay higher unemployment insurance premiums as a result.
• If the employee "voluntarily resigns," they usually don't qualify for unemployment (because they left by choice).
• This saves the company money while making it look like employees are leaving willingly.
- Reducing Risk of Lawsuits & Legal Issues
• Firing someone for performance can lead to wrongful termination claims, especially if they fail to document the issues thoroughly.
• A voluntary resignation waives legal claims because employees choose to leave (and often sign paperwork agreeing not to sue in exchange for the severance package).
• If they push out a large number of employees at once, they don’t want to risk multiple lawsuits claiming unfair treatment or discrimination.
- Protecting the Company’s Reputation
• Mass firings for performance could hurt the company’s public image and its ability to recruit new workers in the future.
• If people leave “voluntarily” with severance, it softens the blow and makes the company look like it’s being generous instead of cutting people.
- Reducing Workload for HR & Managers
• Firing people takes a lot of HR time and paperwork.
• Performance Plans require extra coaching, monitoring, and documentation—and managers don’t want to deal with it.
• Encouraging PIP employees to take severance speeds up the process with less hassle for them.
- Potentially Lowering Layoff Numbers Later
• If enough PIP employees take the VRSP now, the company may not have to do as many forced layoffs later.
• It helps thin the workforce without an official "layoff" announcement.
They are a major company. They don't care about you; they are cutting the weeds (which can be understandable), but they are making sure they can't be sued for doing it. Be smart. Be aware of manipulative tactics.
Do what you want, but just know the truth behind it all.