Offering early retirement to employees in order to handle a labor surplus could:
A) result in a labor shortage.
B) still result in needing to lay off employees.
C) increase costs for the organization temporarily.
D) result in increased turnover of other employees.
E) Both A and C are correct.

Question

Quizplus · Accepted Answer

Offering early retirement can indeed result in a labor shortage if too many employees accept the offer, especially those with critical skills. Additionally, it can increase costs temporarily due to the payouts and benefits associated with early retirement packages.

Offering Early Retirement to Employees in Order to Handle a Labor