This study investigated what elements influence an individual's sense/decision making process when presented with a voluntary separation incentive (buyout offer) during a reduction in workforce program. An action research approach using semi-structured interviews was conducted with 29 employees of a large U.S. manufacturer who either chose to decline the buyout (Stayer) or accept it (Leaver). Individuals were purposefully selected to capture a wide range of attitudes, beliefs, and values regarding job related and labor market perceptions, and personal characteristics. Grounded theory was utilized in order to identify broad influential elements and explore underlying complexities surrounding and interacting with those elements in terms of sequence, strength, and direction.

The results of this study found three core influential elements, job (in) security, evaluation of alternatives, evaluation of needs, and one informant element labeled social contagion. Job (in) security held the highest amount of influence and resonated throughout the buyout sense/decision making process. Evaluation of alternatives seeks to understand: "if I am not working for the firm, what are my options?" Evaluation of needs focuses on understanding what an individual needs from his/her personal and work life. Finally, social contagion uses information gathered from "others" to help inform the core influential elements. A framework of Influential Elements of a Voluntary Separation (Buyout) was developed that will aid the individual in conducting a comprehensive sense/decision making process and help the firm in the design and management of a buyout program that reduces and/or eliminates unintended consequences generated when a buyout is offered to employees.