Voluntary Retirement Scheme in Mauritius
Voluntary Retirement
Scheme
Presented by: M.Y.I.Goomany
Learning Objectives
Understand VRS
Exit policy & its Effect
Understand the procedure for VRS
Merits and Demerits of VRS
VRS in Mauritius
VRS, others view
Vendor Repair Specialist
Vertical Rescue Solution
Virtual Reality System
Vision Rehabilitation System
Virtual Race System
What is a VRS?
A voluntary retirement scheme (VRS) package is offered to
employees as an incentive to retire earlier than their normal retirement age. The VRS package usually contains generous retirement benefits for certain employees.
When a man retires, his wife gets twice the
husband but only half the income
I'm retired - goodbye tension, hello pension
Effect of Excess Manpower
High
Labour cost leading to high cost of production Reduce competitive ability
Reduce efficiency
Threat for new technology
Communication problem
Reasons for proposing VRS
Recession
Intense competition
Change in technology, production process, innovation, new
product line
Realignment of business
Take overs or mergers
Business Process Re-engineering
Procedures for VRS
The Employer has to issue a circular communicating his decision to offer VRS, mentioning:
The reasons for downsizing
Eligibility (age, service period)
The benefits offered
The right to accept or reject
Deadlines
Steps to be taken for introducing and implementing VRS
Approval from government(private sector)
Identify targeted department/employees
Involve union
Motivate the manager for counseling
Counseling employees
Accept or reject applications
For accepted applications, show worksheet
The challenges in implementing VRS
Internal discussion among all staff
Planning of post downsizing
Ensure participation of all employees in decision
Should match the strategic plan of the organisation
Transparency
Provide
Scheme
Presented by: M.Y.I.Goomany
Learning Objectives
Understand VRS
Exit policy & its Effect
Understand the procedure for VRS
Merits and Demerits of VRS
VRS in Mauritius
VRS, others view
Vendor Repair Specialist
Vertical Rescue Solution
Virtual Reality System
Vision Rehabilitation System
Virtual Race System
What is a VRS?
A voluntary retirement scheme (VRS) package is offered to
employees as an incentive to retire earlier than their normal retirement age. The VRS package usually contains generous retirement benefits for certain employees.
When a man retires, his wife gets twice the
husband but only half the income
I'm retired - goodbye tension, hello pension
Effect of Excess Manpower
High
Labour cost leading to high cost of production Reduce competitive ability
Reduce efficiency
Threat for new technology
Communication problem
Reasons for proposing VRS
Recession
Intense competition
Change in technology, production process, innovation, new
product line
Realignment of business
Take overs or mergers
Business Process Re-engineering
Procedures for VRS
The Employer has to issue a circular communicating his decision to offer VRS, mentioning:
The reasons for downsizing
Eligibility (age, service period)
The benefits offered
The right to accept or reject
Deadlines
Steps to be taken for introducing and implementing VRS
Approval from government(private sector)
Identify targeted department/employees
Involve union
Motivate the manager for counseling
Counseling employees
Accept or reject applications
For accepted applications, show worksheet
The challenges in implementing VRS
Internal discussion among all staff
Planning of post downsizing
Ensure participation of all employees in decision
Should match the strategic plan of the organisation
Transparency
Provide