How Hero Motocorp's voluntary retirement helps trim its workforce without layoffs

The Hero Honda brand that later became Hero Motocorp has been synonymous with the surge of affordable two-wheelers on Indian roads. Workers at its five plants across the country roll out more than 100 million motorbikes and scooters, which are among the most trusted rides for Indians.

With labour welfare gaining more importance after the pandemic, Hero Motocorp has announced a voluntary retirement scheme with benefits for workers.

Prioritising welfare while trimming workforce

As global firms resort to layoffs for trimming the workforce and increasing efficiency, Hero Motocorp is offering early retirement to make the organisation lean and productive.

Available to all staff members, the VRS will come with a one time lump-sum amount, variable pay, gifts, and medical insurance.

Apart from that, retired employees can retain the company car, and will get assistance for relocation and a career post-retirement.

Already on the path to growth

The firm has already been increasing its earnings thanks to robust demand backed by government policies in India.

It has sold more than five lakh two-wheelers in March 2023 alone, which is 15 per cent higher than the same period last year.

Apart from Hero Motocorp, recovering airline Air India has also announced voluntary retirement for workers, as it looks forward to hire new crew members to streamline operations.

With early retirement as a measure to trim the workforce, employees get to enjoy perks of retired life and also provident fund and gratuity, as opposed to layoffs where they are left hanging.