Infographic: An Introduction to Severance Packages

Severance Packages: What Employers Should Know What are Severance Packages? Severance Packages are compensation benefits awarded to employees leaving the company 60% 62% 73% severance policies come from businesses with terminated severance plans employees must company policy and local/national sign a waiver before they can law access severance Most common benefits included in a severance package: Assistance Programs, Continued Benefits, and Company Resources 73% of companies provide outplacement services 56% put a cap on the amount HEALTHCARE FINANCIAL PLANNING FINANCIAL COMPENSATION *Financial compensation usually offered as lump sum Choosing the right benefits: Years of Service, Position, Pay Level, Size of the Company, Sector, and Cause Years of service Position Pay Level $$ Managers get from 3 to 6 months pay Staff get from no $ severance to 3 1 or 2 weeks of pay for each year of service, with pay capped at a certain number of months Executive-level months of pay employees get from 6 months to 1 year Severance terms are written into of pay many employment contracts Company Size Sector Cause Severance packages vary depending on the type of organization A termination based Larger companies offer more formalized on poor performance won't include a severance package, while layoffs generally do severance packages Additional Resources For Discharged Employees Relocation Assistance, Job Search Software, Additional Training, Career Fair Info, Resume Help HOW IT HELPS: Helps employees to forge new connections and get back on their feet Relocation 3-5% of U.S. companies provide Assistance relocation assistance HOW IT HELPS: Helps workers stay focused on future opportunities, leaving a positive relationship with their former employer Each day, 4 million people search out new opportunities on their computers/the Web--33 % higher than daily job-search Job Search Software HOW IT HELPS: Alleviates skills gaps Additional 3-4% of U.S. companies provide Skills Training retraining HOW IT HELPS: Access to new employment opportunities 17 Upcoming Career Fair career fairs affer laying off factory workers Information Hostess recently provided access to HOW IT HELPS: Helps employees to forge new connections and get back on their feet Resume / Helps workers prep for the job search Branding Help Be prepared: Hopefully you’ll never need to use your severance policy, but in the event that you do, you'll be prepared. Brought to you by careershift job hunting & career management solutions www.careershift.com SOURCES: http://jobsearch.about.com/od/salary/a/severance.htm http://www.right.com/thought-leadership/research/severance-practices-around-the-world.pdf http://www.worldatwork.org/waw/adimLink?id=54955&from=press4 http://www.deseretnews.com/article/865567790/Job-fair-targets-displaced-Hostess-workers.html? pg=all http://www.allbusiness.com/human-resources/workforce-management- termination/947-1.html#axzz2K2eLBWKu http://www.recruitersnetwork.com/poll/stats.htm design by shamgar-tracts.com Severance Packages: What Employers Should Know What are Severance Packages? Severance Packages are compensation benefits awarded to employees leaving the company 60% 62% 73% severance policies come from businesses with terminated severance plans employees must company policy and local/national sign a waiver before they can law access severance Most common benefits included in a severance package: Assistance Programs, Continued Benefits, and Company Resources 73% of companies provide outplacement services 56% put a cap on the amount HEALTHCARE FINANCIAL PLANNING FINANCIAL COMPENSATION *Financial compensation usually offered as lump sum Choosing the right benefits: Years of Service, Position, Pay Level, Size of the Company, Sector, and Cause Years of service Position Pay Level $$ Managers get from 3 to 6 months pay Staff get from no $ severance to 3 1 or 2 weeks of pay for each year of service, with pay capped at a certain number of months Executive-level months of pay employees get from 6 months to 1 year Severance terms are written into of pay many employment contracts Company Size Sector Cause Severance packages vary depending on the type of organization A termination based Larger companies offer more formalized on poor performance won't include a severance package, while layoffs generally do severance packages Additional Resources For Discharged Employees Relocation Assistance, Job Search Software, Additional Training, Career Fair Info, Resume Help HOW IT HELPS: Helps employees to forge new connections and get back on their feet Relocation 3-5% of U.S. companies provide Assistance relocation assistance HOW IT HELPS: Helps workers stay focused on future opportunities, leaving a positive relationship with their former employer Each day, 4 million people search out new opportunities on their computers/the Web--33 % higher than daily job-search Job Search Software HOW IT HELPS: Alleviates skills gaps Additional 3-4% of U.S. companies provide Skills Training retraining HOW IT HELPS: Access to new employment opportunities 17 Upcoming Career Fair career fairs affer laying off factory workers Information Hostess recently provided access to HOW IT HELPS: Helps employees to forge new connections and get back on their feet Resume / Helps workers prep for the job search Branding Help Be prepared: Hopefully you’ll never need to use your severance policy, but in the event that you do, you'll be prepared. Brought to you by careershift job hunting & career management solutions www.careershift.com SOURCES: http://jobsearch.about.com/od/salary/a/severance.htm http://www.right.com/thought-leadership/research/severance-practices-around-the-world.pdf http://www.worldatwork.org/waw/adimLink?id=54955&from=press4 http://www.deseretnews.com/article/865567790/Job-fair-targets-displaced-Hostess-workers.html? pg=all http://www.allbusiness.com/human-resources/workforce-management- termination/947-1.html#axzz2K2eLBWKu http://www.recruitersnetwork.com/poll/stats.htm design by shamgar-tracts.com