India Inc To Step Up VRS In Coming Quarters: Experts

Executive search firm Lighthouse Partners Managing Partner Rajiv Burman said: "The trend will indeed pick up in the future" and that mostly mid-level executives will be targeted.

"As India globalises, public sector corporations which are reputed to be highly overstaffed and grossly inefficient, will have to shed flab and go in for aggressive VRS," he noted.

Spectrum Talent Director Sidharth Agarwal said that while VRS is being increasingly offered across sectors, the trend is majorly been seen in government organisations where down sizing otherwise is not possible.

"In one of the organisation, the management decided to consider 5000 employees under VRS scheme. However, the panel of experts suggested that 7,000 employees be brought under the VRS scheme instead of just 5,000 which meant saving of over Rs 350 crore annually for the next five years," Agarwal said without naming the company.

According to experts, companies are offering VRS as part of restructuring exercise, efforts to turn profitable, deal with non-performance, respond to decline in sales and increase in cost, reduce overhead costs, protect long-term interests of the organisation and recession in the business.

Agarwal said that firms are holding counselling sessions and offering investment related services from Citibank, Bank Of America, among others, to reduce post retirement related stress.
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