As more businesses right-size their organizations and realign talent to compete in the global marketplace, severance practices are getting more attention. In the eyes of most experts these practices are critical to the success of any restructuring effort.
Are your severance policies up to date? Relevant to departing employees and reassuring to those who remain? Designed to reduce risk of litigation? How successful are your severance practices in differentiating and strengthening your employment brand … and driving better business outcomes, such as increased employee engagement?
Severance practices differ from country to country depending on laws, customs and business protocols – and benchmarking against global norms can assist any organization in refreshing its own severance practices. Right Management just issued the results of a comprehensive study of Severance Practices Around the World which tapped into the collective experiences and insights of 1,800 senior executives and human resource professionals from 19 countries and 19 industries.
This comprehensive report – segmented by country, region, company size and industry — covers virtually every aspect of severance policy design, including:
- How severance payouts are calculated
- Length of tenure required
- Types of benefits offered at various tiers, from top executives on down
- Utilization of outplacement services
In the report, Right Management experts also discuss critical issues, such as the impact of severance policies on the organization’s brand, the use of retention bonuses when offshoring talent, and the link between outplacement support and accelerated productivity post right-sizing.
According to the survey, one in four businesses intends to update its severance plans in the next 12 months. The most likely change? Well, you’ll have to read the report to find out. If your organization’s severance practices haven’t been examined in a few years, it may be time to take a fresh look and rethink your strategies. Requesting a copy of the research study from your local Right Management office is a good place to begin.