Last week, we asked: What kind of severance package do you offer departing employees as part of a layoff?
- We offer a severance based on years of service, 41%
- We don’t offer severance packages, 33%
- We do something different/customized for the situation, 15%
- We offer a severance based on position, 7%
- We offer a flat severance for all employees, 3%
Traditionally, we’ve seen years of service as the gold standard for employee severance packages so it isn’t surprising that 2 of 5 people polled told us that. I’ve started to see more companies use a flat rate based on position (executive, middle manager, etc…), but I was surprised to see so many companies aren’t offering a severance package. Even if you don’t believe in the value of giving someone a token as they move on due to no fault of their own, it is an easy way to limit your company’s liability.