Severance Packages: What Employers Should Know

Employees leave companies around the world every day, for a variety of reasons ranging from personal life changes to employer dissatisfaction. For companies, maintaining a positive relationship with these discharged workers can be tough. Business reputation is on the line if they don’t help former workers to get back on their feet — but a carefully created severance package can help.

We’ve compiled the infographic below to help employers understand the importance of employee severance packages and outplacement services for recently discharged workers. A few key points:

• 60% of businesses have severance plans
• 3-4% of U.S. companies provide discharged workers with skills retraining
• Most often, severance pay is offered as a lump payment
• Larger companies typically offer more formalized severance packages
• Many discharged workers turn to job search software: daily Internet job search traffic is 33% higher than 2 years ago

Check out our full infographic below for more information on how employers can improve severance packages and employee outplacement services.