Benefits and Compensation, Talent

Guide to Severance Reveals Positive Changes in Payout, Eligibility, and Benefits

RiseSmart, a provider of contemporary career transition services, has released its 2017 Guide to Severance and Workforce Transition. The Guide helps organizations ensure their severance policies are competitive and comprehensive. Containing rich data from a survey of U.S. businesses with at least 500 employees, the Guide gives organizations an easy way to benchmark their severance eligibility, duration, and benefits against peers in their industries and geographies.Severance

RiseSmart’s new Guide outlines how severance offerings have evolved since 2014, when RiseSmart first published its 2014 Guide to Severance and Workforce Transition. Today, more companies are providing salary payouts for longer periods of time, offering more flexibility for employees through working notice, and including benefits outside of healthcare as part of their standard packages.

These changes directly correlate with the evolution of workplace culture and workforce expectations, including an increased expectation for employee fairness, larger market competition for talent, growing recruitment, and hiring costs as well as overall acknowledgment of the importance of a positive brand reputation.

“We’ve watched workforce expectations and company cultures evolve and change over the past few years, and it’s no surprise that the addition of contemporary outplacement services as part of severance packages presents a distinct advantage for organizations,” said RiseSmart President and CEO, Sanjay Sathé, in a press release. “Knowing what payment, notification, benefits and outplacement options to offer in their severance packages helps companies mitigate risk and positively impact employee relations and their employer brand.”

The growing need to create a positive employee experience and maintain good relationships with all employees has prompted a trend toward offering outplacement to more employees, regardless of role. In 2017, nearly half of those surveyed understand the positive impact offering outplacement to transitioning employees can have on preserving employee relationships and employer brand reputation. Click here to see the infographic for more survey findings.

“Employers of choice realize that the employee experience doesn’t end when workers walk out the door,” said Sathé. “Our Guide has identified areas of opportunity for organizations looking to bring their severance policies in line with evolving industry trends and best practices in 2017 and beyond.”

For more information about the RiseSmart guide, click here.

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