Browse Definitions:
Definition

voluntary severance package

Contributor(s): Ivy Wigmore

A voluntary severance package is a financial incentive that’s offered to an employee in hopes that he will resign or retire. Unlike most severance packages, a voluntary severance package gives the employee the option to decline the offer.

 Generally, voluntary severance packages are offered at a time that will benefit the company by reducing the workforce and cost of salaries and benefits. High-earning long-term employees who are close to retirement age may be offered early retirement packages, for example, in the hopes of forestalling layoffs.  Because a voluntary severance package benefits both the employer and the employee who accepts the package, it is sometimes referred to as a "golden handshake." 

The golden handshake is closely related to the golden parachute, which is a severance agreement that provides an executive with a substantial package upon termination, usually in advance of some event that might have a less favorable outcome for the executive, such as an acquisition, a merger or a breaking scandal.  

Golden handcuffs refer to a different type of agreement, in which employees are effectively shackled by financial incentives designed to motivate them to stay with a company longer than they might otherwise do. 

This was last updated in November 2014

Continue Reading About voluntary severance package

Join the conversation

3 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

How can certain individuals be denied a VSP yet others in similar positions are awarded the package. What rights does an individual have to fight the refusal of a VSP.
Cancel
If I don't want to take severance pay,but if I get made reduant an get the full redundancy package which is capped how much will I lose
Cancel
To day received a letter about company offering voluntary severance ,as this is has been put indirectly,as have never been discussed to me at any time what rights do I have,,
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • PCAOB (Public Company Accounting Oversight Board)

    The Public Company Accounting Oversight Board (PCAOB) is a Congressionally-established nonprofit that assesses audits of public ...

  • cyborg anthropologist

    A cyborg anthropologist is an individual who studies the interaction between humans and technology, observing how technology can ...

  • RegTech

    RegTech, or regulatory technology, is a term used to describe technology that is used to help streamline the process of ...

SearchSecurity

  • Advanced Encryption Standard (AES)

    The Advanced Encryption Standard, or AES, is a symmetric block cipher used by the U.S. government to protect classified ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • spear phishing

    Spear phishing is an email-spoofing attack that targets a specific organization or individual, seeking unauthorized access to ...

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

  • disaster recovery as a service (DRaaS)

    One approach to a strong disaster recovery plan is DRaaS, where companies offload data replication and restoration ...

SearchStorage

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

  • GlusterFS (Gluster File System)

    GlusterFS (Gluster File System) is an open source distributed file system that can scale out in building-block fashion to store ...

  • virtual memory

    Virtual memory is a memory management capability of an OS that allows a computer to compensate for physical memory shortages by ...

SearchSolidStateStorage

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

  • SSD caching

    SSD caching, also known as flash caching, is the temporary storage of data on NAND flash memory chips in a solid-state drive so ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close