ResumeBuilder.com Survey Reveals 3 in 4 Companies Offered Voluntary Separation Agreements to Employees in 2022

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More than 90 percent of businesses agree the new policy has helped to avoid layoffs, and a majority say the decision was inspired by Elon Musk

Survey results indicate that most companies were inspired by Twitter CEO, Elon Musk to offer voluntary separation agreements. Eighty-nine percent of respondents say they ‘somewhat’ or ‘strongly’ believe the company took its cue from Musk’s policies at Twitter.

ResumeBuilder.com, the premier resource for job-seekers, has published a recent survey report that shares insight into businesses that have taken their cue from Elon Musk and offered voluntary separation agreements to employees this year. The report also examines how companies plan to downsize their workforce in 2023. The study generated responses from 1,000 hiring managers, owners, and other key decision-makers across the United States.

Based on the study, 77 percent of respondents say their company offered voluntary separation agreements to employees this year to avoid layoffs. Ninety-six percent of key decision makers also say their company is ‘somewhat’ or ‘highly’ likely to continue offering voluntary separation in the new year. Sixty-one percent of respondents from this group say their company will offer more agreements next year as compared to this year, and 20 percent will offer fewer next year. Similarly, 19 percent of businesses plan to offer about the same amount.

Survey results indicate that most companies were inspired by Twitter CEO, Elon Musk to offer voluntary separation agreements. Eighty-nine percent of respondents say they ‘somewhat’ or ‘strongly’ believe the company took its cue from Musk’s policies at Twitter. A majority of company representatives also believe that these agreements helped to bypass layoffs. Forty-eight percent of respondents say voluntary layoffs have been ‘somewhat’ successful, and 47 percent say they have been highly successful in helping the company to avoid downsizing.

According to the survey, 53 percent of companies say they need at least 20 percent of employees to leave willingly. Most companies will also consider several criteria when offering voluntary separation agreements. Forty-nine percent of businesses say they consider who is closest to retirement age, and 40 percent consider who is the highest paid. Only 8 percent of respondents say the agreements are offered to all employees.

Additionally, 89 percent of companies that offered separation agreements say they also proposed a higher salary to high-performing employees in exchange for them staying. Although companies are hopeful that the separation agreements will help reduce costs and avoid layoffs, 68 percent are concerned about losing its best employees, and 67 percent are worried about possible discrimination claims from employees who are not chosen to receive agreements.

ResumeBuilder.com commissioned and conducted this study via the online platform Pollfish. The survey was distributed from December 14 to 15, 2022. All participants had to pass through demographic filters to ensure they were age 25 or older, currently employed for wages or self-employed, have an income of $50,000/year or more, work at a company of at least 51 people, and are a C-level executive, owner or partner, HR manager, president/CEO/chairperson, or senior manager at their business. Respondents were asked to answer all questions truthfully and to the best of their abilities. Pollfish uses Random Device Engagement (RDE), which is both random and organic. To view the complete report, please visit https://www.resumebuilder.com/inspired-by-elon-musk-3-in-4-companies-offered-voluntary-separation-to-employees-this-year-3-in-5-plan-to-offer-more-in-2023/.

ABOUT RESUMEBUILDER.COM
ResumeBuilder.com conducts industry research and offers insights to job seekers to help them gain a competitive advantage and get hired faster. To learn more, visit https://www.resumebuilder.com/.

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Heidi Thiel
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