Recent Survey Results
2019 Severance Pay, Policy, & Practices Survey
Highlights of the survey include:
- Just 18% of those surveyed maintain formal severance plans or policies governing severance arrangements. More often, severance arrangements are determined on an ad hoc or case by case basis or are included in employment agreements.
- The most common events that typically trigger severance is position elimination (78%), permanent layoff (56%), at-will termination (47%).
- The most prevalent method for calculating severance for non-executive plans is years of service (80%). A majority of those surveyed (57%) grant one week of pay per year of service, typically to a maximum of 24 weeks.
- Severance benefits for executives is most often negotiated on an individual basis.
- Half of those surveyed do not continue employee benefits during the severance period.
- Fewer than half of those surveyed (46%) provide outplacement benefits to those affected by a reduction in force/layoff. Of those that do, a majority (90%) use an outplacement firm to do so.
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