SAN JOSE, Calif., Feb. 3, 2015 -- RiseSmart, the leading provider of contemporary career transition services, recently released its Guide to Severance and Workforce Transition, which was based on a survey of more than 250 U.S. Human Resources professionals. The guide offers in-depth benchmarking data related to severance, benefits and outplacement across industries and geographies. One key finding of the survey was the disconnect between why companies offer severance and how severance benefits are being implemented.
"When asked why they provide severance, the majority of the HR professionals selected as their top three reasons to 'take care of employees,' 'limit company liability,' and 'protect employer brand,'" said Sanjay Sathe, president and CEO of Rise Smart. "But based on the actual benchmarks, the actions companies take when implementing a severance policy don't necessarily support those goals."
While the number one reason respondents gave for offering severance was to "take care of employees," the survey found that, on average, 39 percent of employers do not offer severance to all employees. In some industries, such as banking/financial markets, the percentage of employers that do not offer severance to all employees was even higher at 56 percent.
More than 250 HR professionals across 16 industries in the U.S. participated in the study, many of whom held the title of vice president or director of human resources. While representatives from organizations at all sizes chose to participate, at least 34 percent were fromFortune–ranked companies.
"RiseSmart conducted this survey in order to provide other leaders in the human resources field with industry-specific data on what their competitors and peers are offering to employees," Sathe said. "These findings provide a valuable insight on industry sentiment and actual policy and how they may differ in practice."
The industries represented in the survey include automotive, health care, banking and financial markets, computer software, telecommunication and electronics, wholesale and retail, construction and manufacturing, and information technology, as well as others. In addition to severance, the study also looked at other benefits, including outplacement, redeployment, and health plan continuation.