Which term refers to a type of RIF that includes severance pay?

The term that accurately refers to a type of Reduction in Force (RIF) that includes severance pay is voluntary reduction. In this scenario, employees are often given the option to leave the organization in exchange for a severance package, which serves as an incentive for them to voluntarily choose to exit rather than face involuntary termination. This approach can be beneficial for both the organization and the employees; it helps the organization to reduce workforce costs while providing employees with the financial support of severance during their transition.

In contrast, other forms of reduction, such as involuntary reductions or layoffs, typically do not offer severance pay as a standard element. While severance can sometimes be negotiated following involuntary terminations, it is not inherently part of the process. Thus, the emphasis on choice and incentive through severance in a voluntary reduction makes it the correct term for this context.