VRS An Strategic Approch to Meet Need of Organisation.pptx

Voluntary Retirement Scheme (VRS)“An Strategic Approach to Meet Need of Organization and Employee”.

1. V oluntary Retirement Scheme  (VRS) “An Strategic Approach to Meet Need of Organization and Employee”. By :- Krishna Raj Bhatta

2. Meaning :- A  voluntary retirement scheme  (VRS) is one of the popular methods implemented by companies to reduce its employee strength. Such measures are usually taken up in times of economic hardship or to disengage employees who have outlived their productive period of service in that company. VRS is a cordial way for companies to let go of some of their employees, which is often known as the “Golden Handshake” between the organization and its employees. 

3. PTO The voluntary Retirement Scheme is introduced while keeping an organization's economy and resource utilization in mind. Also, it will provide relief to employees who want to retire early and have plans after that.

4. Objective of Presentation How should organization conduct VRS plan to maintain its cost and to retire employee who have outlived their productive period in organization.

5. Target Employee Resistance to change kind of employee. Employee who want to leave organization if gets good benefits.

6. Case 1 ( In Case of Individual) Ram is 40 year old person . His current position is Manager. Now Mr. Ram want to leave the organization as he have better alternative. However he is unable to leave organization because he have avail various loan from organization. Due to his personal demotivation , his productivity seems lower in organization . However organization have paid high. If Mr. Ram gets good VRS plan he want to leave organization.

7. Case 2 ( In Case of Individual) Hari is 50 year old person who is working an organization from last 20 year. Recently organization have adopted new technology in organization and training has been provided to employee. Although after availing training Hari cannot grape any knowledge from it. Beside it, he do-not want to change himself. As age has passed his visibility have also declined . Beside it he forgets things very fast. Due to which Mr. Hari could not conduct organization process as per the requirement. If Mr. Hari gets good plan, he want to leave the organization.

8. Case 3 ( In Case of Organization) XYZ is an organization who have 3500 employee. XYZ want to introduce VRS Scheme however it do-not have Reserve or good Financial strength. Although Organization want to introduce VRS scheme but due to financial constraints it cannot introduce the Scheme.

9. Conclusion In the above case it has been observed due to person willingness to leave organization or due to resistance of change, productivity of organization declines. However both are interested for better plan ( VRS) to leave the organization. In case of organization , Although organization want to launch VRS but it have financial constraints.

10. What should organization do in this case To achieve win- win situation organization should make an strategic plan for year ( Like 5 year, 6 year and so on). Organization should plan for budget in one year how much money can organization spend ( Like 5 crore , 10 Crore). On the basis of Budget organization should define number of staff. Elaboration of same has been done on next page.

11. Example XYZ organization have 3500 employee. It have prepared a plan that it will reduces 500 top level employee in coming five year. It will spend budget of 25 crore every year. Total year 5 year ( From 2024-2029) Budget per year :- 25 crore Other facility :- As per need of organization . No of employee : 100 Per year ( Those who apply first will get chance) Target Employee :- Who have contributed from last 15 year of any post/ level or manager ;eve; above. (As per need of organization it should be set). Important Note :- For Five year , The facility shall be same . There will not be change in facility and clear communication should also be conveyed. Other wise Employee may expect that better facility can come in next year and may not leave for organization.

12. Conclusion If the above plan is made , it can help to provide VRS scheme is less budget and number of employee can be reduced gradually.