Decoding the VRS Wave: A case study of factors Influencing MTNL Employees’ Decisions Across Age Groups

Abstract

Mahanagar Telephone Nigam Limited (MTNL) is an Indian state-owned telecommunications company that runs their operation in Delhi and Mumbai. In year 2019, MTNL launched a Voluntary Retirement Scheme (VRS) for employees aged 50 and more. The focus of VRS was to reduce the financial constrains of the salaries and there was a need to downsize and streamline the workforce. Around 75% employees opted for VRS. This acceptance rate of VRS was remarkable within the organisations. In this study, we demonstrates how employees of MTNL Delhi decided to go for VRS and what factors influenced them to arrive at VRS decision making process. This study investigates these factors between two age group of retirees that are 50 to 55 years and over 55 years respectively. The main focus of the study is on the aspects of Financial Readiness and Stability, Age-Related Bias and Workplace Perceptions, Skills and Career Transition and Healthcare and Medicare considerations Benefits between these two age group retirees which ultimately influenced them for early retirement. Apart from it, Healthcare and Medicare considerations are a major factor for those who were over 55. In this regards, the existing literatures on the subject are reviewed thoroughly and critical gaps are highlighted. The finding explains how VRS is a complex phenomenon that interplays among personal, professional, financial and health related factors in retirement decision.  The study also sheds light on what actually goes through someone's mind when they decide it’s finally time to retire early.