Choices and constraints: individual perceptions of the voluntary redundancy experience

Abstract

<jats:p>This article considers how voluntary redundancy influences individual perceptions of retrenchment. Semi‐structured interviews were conducted with people who had taken voluntary redundancy from a range of Australian public and private sector organisations. The article argues that, although some employees may feel pressured into accepting voluntary redundancy, for most people it provides a better alternative to involuntary retrenchment, enabling them to maintain self‐esteem and reducing the negative psychological, physical and financial impacts normally associated with retrenchment. However, it also suggests that redundancy programmes need to be managed strategically to avoid creating a ‘package culture’ mentality in which turnover becomes contingent on receiving a redundancy package.</jats:p>