Advantages for employers and employees
In many restructuring situations, redundancies can be avoided by offering employees individual severance packages. These amicable separations significantly mitigate the critical effects of restructuring on corporate culture and employer brand.
No social selection
Since the employer can control who is offered participation in the voluntary program, this allows them to retain high-performing employees and valuable expertise within the company. Depending on the scope of the program, consultation with the works council may be necessary. Generally, close coordination with the works council is recommended to find the best solution for all parties involved.
Better opportunities in the job market
When employees voluntarily choose to end their employment, they approach reorientation with a significantly more positive attitude than if they were dismissed. This has a major impact on the success of their reorientation. Furthermore, voluntary programs usually offer professional outplacement support.
The employer makes an attractive offer for severance packages. These severance packages only come into effect after an employee applies and the employer agrees. Even though a rejection doesn't formally require justification, it's advantageous to establish clear criteria beforehand. Otherwise, it could discourage employees from applying, as they fear stigmatization in the event of a rejection.
Double voluntariness
Employers are usually interested in keeping the decision-making period as short as possible to quickly gain planning certainty as to whether the savings targets will be met. At the same time, it can be assumed that a longer period can increase the acceptance rate. A reflection period of 10 days should definitely not be undercut so that employees can clarify their questions and involve their families in the decision.
The right timing
Managers are usually the first point of contact for employees - they should therefore be prepared for the program with all relevant information and FAQs; specific training may also be useful.
Involvement of managers
Employees need to be aware of several things – in addition to individual job market opportunities, they also need to clarify questions regarding potential waiting periods for unemployment benefits, as well as tax and social security implications. Transparent information and tools, such as a severance calculator combined with personalized advice, provide peace of mind.
Advice on increasing the acceptance rate
The severance package should be significantly higher than the expected outcome under a social plan, meaning either a higher factor or a lump sum of one or more additional months' salary. Additionally, early departure bonuses can be offered if employees leave before the end of their notice period. This benefits both sides, as employers avoid social security contributions on severance payments, and employees face lower taxes.
Attractive monetary incentives
Terminating a contract is particularly attractive when employees expect to quickly find a suitable new position. Professional support during the reorientation process, ideally including a training budget, significantly increases the willingness to embrace the uncertain career change – especially among older employees.
Outplacement consulting and further training opportunities
In the event of a change in operations as defined by the Works Constitution Act (BetrVG) or if the reduction in staff exceeds the thresholds stipulated in the Protection Against Unfair Dismissal Act (KSchG), the works council must be involved. Voluntary redundancy programs are often viewed positively; however, selective programs can lead to discussions. Generally, the acceptance rate is significantly improved if the works council supports the program and potentially even assists in advising employees.
Cooperation with the works council
In addition to a program open to all employees, the target group for offerings in a selective volunteer program can be more precisely defined. Both specific employee groups and individual employees can be targeted. However, the anti-discrimination provisions of the General Equal Treatment Act (AGG) must also be observed here.
Open vs. selective: The right target audience
That's what matters
We support your volunteer program as needed with career guidance, leadership training and outplacement + individual further education.
Digital information portal with employer-specific information on the conditions of the volunteer program, including FAQs.
Severance pay calculator and gross-to-net calculator
Individual labor market analysis including job opportunities report, salary benchmark and skills analysis <
Personal career guidance and sparring in decision-making with an experienced career consultant
Personal pension advice available upon request, including individual calculations of various retirement scenarios.
Orchestration of the process for individual requests for termination offers, including status reporting, is available upon request.
