Question

Hope College is planning for the next biennium. School administrators know that the enrollment is on the decline, but still need to offer students the best experience possible. They want to shrink their payroll slowly. They can accomplish this through
A. temporary employees.
B. pay reduction.
C. downsizing.
D. demotions.
E. early retirement.

Answer 1

Answer:

E) early retirement.

Explanation:

When a large company carries out an early retirement plan, it aims to retiring employees that are near retirement age, but not yet there. They usually offer these employees a compensation plan that leaves them on a more favorable position. The reason why they do this is because employees that have been working for a long time in the company (e.g. people age 55 and above) tend to have higher salaries.