Cinergy Inc., a Midwestern gas and electric utility company, needs to reduce its workforce over the next 2 years. The company is offering employees who leave the firm before the age of 65 a bonus equivalent to 2 weeks' pay for every year of employment with Cinergy Inc. In the given scenario, Cinergy Inc. is:

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Cinergy Inc. is encouraging voluntary early retirement by offering a financial incentive (a bonus equivalent to 2 weeks' pay for every year of employment) to employees who choose to leave the firm before the age of 65. This strategy is aimed at reducing the workforce in a way that allows employees to leave on their own terms, rather than through layoffs or firings, which would be considered involuntary turnover.