Back in 2000 (?) Allstate offered VTO - voluntary termination option to all of Home Office and they were shocked at the number of people that opted to take the package and go. They were caught off guard and had a brain drain. They still have PTSD from that which is why if you search here you'll see comments like "they said no VTO ever again". Sadly they have such id–tic HR leaders they didn't put a TRO option on the table this time. (True comment on leadership here - no one speaks up, all sheep) They probably could have avoided most of the layoffs if they had offered TRO to age 5x and up. They cold have put a quota on it – the first 3000 for example so if you opt in early you get the package. They could have fine tuned it by surveying first and then selecting the right age in order to get the correct number of people. For a "data"company they really screwed this up!
3 replies (most recent on top)
Thanks
It stands for "Targeted Retirement Offer". It's a process used by many large companies to reduce their workforce by way of offering older employees severance pay in exchange for voluntarily retiring prior to their intended (or planned) retirement dates.
For example, let's say you are 55 years old and are planning on retiring at the age of 58. The company would offer you up to a year's worth of pay (sometimes more) to retire now vs waiting until you reach the age of 58.