Adding the word “voluntary” in front of separation, retirement, and severance packages seem to be the new, empathetic way for companies to handle layoffs whether it’s the tech industry or higher education.

These programs, also broadly known as voluntary incentive separation programs, have been around for decades. They first gained traction in the ’80s and ’90s and saw a resurgence of popularity during the COVID-19 pandemic.

Voluntary layoffs are programs that offer employees incentives to leave. These incentives may include extra pay for a few months, healthcare coverage, and other employment services such as career counseling.

Why is this beneficial for employers?

Typically, voluntary programs are offered in order to avoid involuntary layoffs down the line.They allow for employees to retire early or make a career change. Christopher Nickson, vice president and senior consultant for HR firm Segal, explains that voluntary layoffs are often beneficial for companies looking to downsize their highest paid employees.

 “Oftentimes you are taking somebody who has worked for the organization for many years, and as time has gone on, their wages have gone up steadily as a factor of increased experience,” Nickson said. He points out they’ll typically be replaced by someone with less experience. “The result is they come in, typically at a [lower] compensation rate that’s beneficial to the company,” Nickson said.

Essentially, companies view the voluntary programs as a more empathetic and........

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