Average severance offered

We haven't revisited a few facets of our severance policy in quite some time and was looking to see what most of you were offering in severance per years of service. We  provide 1 week per year of service with a minimum of 2 weeks of pay. We cap at 26 weeks (changed this recently from 52 weeks and not apt to change back).

It appears from survey data that 1 week per year of service is more the norm now than 2 weeks or more, but wanted to get some additional data points from other HR partners. We are mostly a manufacturing firm with heavy R&D as well.

Any insight as to what you are providing and your industry is much appreciated!

Thanks, Kim

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  • Midsize professional services company here and very similar.  One week per year of service.

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  • We've averaged 1.5 weeks for every year of service but as a rule our comp/benefits are on the rich side.  One week is not out of line.

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  • Thanks Jennifer and Phil!

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  • We follow an "it depends" system. We consider if the person is retiring, their tenure, if they're separating on good terms, etc. We look at it on a case by case basis. Severance isn't a "given."

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  • Steve Browne Thanks Steve!

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  • We tend to do 1 week per year of service, but severance is not guaranteed - similar to what Steve Browne  said he does

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