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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