HOW IS SEVERANCE DETERMINED?
Most common benefits
3 out of 4 companies have a formal, written severance benefits policy
By companypolicy
By nationalor local law
Combination ofcompany policy & national/local law
Outplacement Assistance
Company Resources
Health Related Benefits
Monetary Benefits
Taking into account how severance practices vary by country is essential for any effective global workforce strategy.
Right
ManpowerGroup
Management
Right Management is the talent and career management expert within ManpowerGroup.As the world’s leading outplacement provider, Right Management’s success is built on 30 years’ unequaled global and local experience, our ability to tap into ManpowerGroup’s unparalleled knowledge of workforces, and our $2 million annual investment in proprietary research. This drives our continuous improvement and ongoing innovation to stay on top of trends, assess market shifts and fuel our leading edge solutions as we help our clients and their former employees to be successful in today’s competitive environment.
About the StudyRight Management’s latest study spans data from 19 countries and input from more than 1,800 senior business leaders and human resource professionals. Whether responsible for managing a workforce in one country or many, this data will help you compare your own practices with broad-based norms to ensure you are providing equitable packages to those who need to leave your employ.
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SEVERANCE PRACTICES AROUND THE WORLD
52 25 23
Global Americas Europe Asia Pacific
82
69 71 65 7240 56 29 3923 20 20 318 6 9 9
Global Average
China
Japan
Netherlands
Singapore
France
Sweden
Spain
Germany
U.K.
Belgium
Canada
India
Italy
Mexico
Brazil
U.S.
Hong Kong
Switzerland
Australia
68
3.48
4.24
4.05
4.02
3.95
3.90
3.73
3.64
3.52
3.51
3.50
3.46
3.38
3.36
3.27
3.23
3.16
3.10
2.75
2.69
GlobalDepartment Heads, Managers,
Supervisors - Involuntarily Separated Americas Europe Asia Pacific
Severance is a complex and sensitiveresponsibility. It is essential employers get
it right as it can have a dramatic impact not onlyon the engagement of employees who remainbut also on those who might be considering employment with the company in the future.
of companies globally
Most employers offer outplacement before monetary incentives.
DOES YOUR COMPANY OFFER MONEY INSTEAD OF OUTPLACEMENT?
SEPARATED EMPLOYEES WHO SELECT A MONETARY OPTION OFTEN DON’T REALIZE...
LOOKING AHEAD:
GlobalPublicCorporation
Public SectorGovernmentAgency
...they may need to acquire additional training / learn
new skills.
...the tax implications of a monetary payout.
...what is required fora successful careertransition.
...how long it takes to land another job.
Private Corporation
Not ForProfit
36 40 35 23YES
59 53 61 71NO
FORMALPOLICY
75FORMALPOLICY
73FORMALPOLICY
72FORMALPOLICY
82
of companies requireseparated employeesto sign a waiver to access benefits.
66
55 of employersenforce a cap on severance payments.
SEVERANCE
LIMIT55
19 of companies offer severance with no minimum tenurerequired.
10YEARS
WHAT SEVERANCE DO TOP EXECUTIVES EARN?Weeks per year of service when involuntarily separated.
provide outplacement where it is not legally required.
75 of organizations use retention bonuses to retain top executives during change.
1/2 1/3 1/5
5.36
are negotiated case by case.
calculate bonuses based on years of service.
calculate bonuses based on performance.
months (on average) added to their salary.
Top executives in the U.S., Switzerland, Australia and Hong Kong trail in severance benefits.
1 in 2 1 in 4
3 in 5
organizations report severance benefits have stayed the same in the past 3 years.
plan to increase benefits/pay.
plan to change their severance plan within the next 12 months.
