RETIREMENT INCENTIVE Meaning and
Definition
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A retirement incentive refers to a financial or non-financial program or benefit offered by an employer to encourage or motivate employees towards retiring from their job or career. It is a proactive measure designed to reduce workforce size, control labor costs, or realign resources within an organization.
Financial retirement incentives typically involve offering certain financial benefits or perks to employees who choose retirement. These benefits could include lump-sum payments, enhanced pension plans, higher retirement benefits, or extended healthcare coverage. By providing these incentives, employers aim to make retirement more financially appealing to employees who may otherwise be hesitant to retire due to financial concerns.
Non-financial retirement incentives, on the other hand, consist of various perks or benefits that go beyond monetary compensation. These may include additional vacation time, access to company facilities or resources, continued professional development opportunities, or flexible working arrangements during the transition to retirement. Such incentives recognize and reward employees for their long service and contributions, while simultaneously creating room for new talent within the organization.
Retirement incentives can be voluntary or mandatory, depending on the terms established by the employer. Voluntary incentives typically provide employees with the autonomy to choose whether or not to retire, considering their personal circumstances and career plans. Mandatory retirement incentives, on the other hand, require employees to retire once they meet specific eligibility criteria, such as reaching a certain age or completing a set number of years of service.
Common Misspellings for RETIREMENT INCENTIVE
- eetirement incentive
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Etymology of RETIREMENT INCENTIVE
The word "retirement" comes from the French word "retraite", which refers to the act of withdrawing or retreating. It entered the English language in the 16th century with the meaning of "a withdrawal from occupation, business, or active life".
The term "incentive" has its roots in the Latin word "incentivus", meaning "that which sets the tune" or "that which moves". It gained its modern meaning of "something that motivates or encourages action" in the mid-15th century.
Therefore, the etymology of "retirement incentive" combines the concept of withdrawing from active life with an additional motivating factor or encouragement to retire.
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