Issue
Like many companies during times of economic volatility, this client reevaluated the size and composition of its workforce to reduce costs and increase efficiency during uncertain times.
Solution
- CBIZ helped design, implement, and administer a voluntary workforce reduction program, or “early retirement window,” which involved offering incentives to a select group of employees in exchange for their agreement to terminate employment.
- After working with CBIZ to assess the most appropriate incentive options, the client opted to offer separation pay and a medical allowance to 2,500 eligible associates.
- After the client made the initial announcement to eligible employees, CBIZ provided access to a secure, web-based portal containing more information and related documents.
- CBIZ acted as the program administrator, taking care of all reporting and employee communications while ensuring the client complied with all legal documentation requirements.
Outcome
- At ~15% acceptance rate, the company reached its target numbers and desired cost savings.
- The voluntary retirement offer was well received by employees who wanted to retire early but would not have been able to otherwise.
- The program was carried out with no disruption to business.
Is Your Retirement Plan Due for a Checkup?
A retirement plan review can help identify strengths, uncover gaps, and provide actionable recommendations to help you ensure a healthy retirement plan while fulfilling your fiduciary duty of prudence. Contact CBIZ to get your personalized, complementary benchmark assessment.
| Company Information | |
|---|---|
| Industry | Manufacturing & Distribution |
| Entity Type | U.S. Public Corporation |
| Number of Employees | 11,000 |
| Annual Revenue | $4 Billion |
Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc.
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