SEVERANCE PRACTICESAROUND THE WORLD

HOW IS SEVERANCE DETERMINED?

52% 25% 23%

By company policy

By national or local law

Combination of company policy & national/local law

3 out of 4 companies have a formal, written severance benefits policy

66% 55% 19%

of companies require separated employees to sign a waiver to access benefits.

of employers enforce a cap on severance payments.

of companies offer severance with no minimum tenure required.

DID YOU KNOW…

WHAT SEVERANCE DO TOP EXECUTIVES EARN?Weeks per year of service when involuntarily separated.

Taking into account how severance practices vary by country

is essential for any effective global workforce strategy.

Most common benefits

69%

40%

23%

8%

71%

56%

20%

6%

65%

29%

20%

9%

72%

39%

31%

9%

Global Americas Europe Asia PacificDepartment Heads, Managers & Supervisors - Involuntarily Separated

Outplacement Assistance

Health Related Benefits

Monetary Benefits

Company Resources

Severance is a complex and sensitiveresponsibility. It is essential employers get it right as it can have a dramatic impactnot only on the engagement of employeeswho remain but also on those who might

be considering employment with thecompany in the future.

68 of companies globally%

provide outplacement where it is not legally required.

DOES YOUR COMPANY OFFER MONEYINSTEAD OF OUTPLACEMENT?Most employers offer outplacement before monetary incentives.

PublicCorporationGlobal

Public SectorGovernmentAgency

PrivateCorporation

Not ForProfit

59%

36%

53%

40%

61%

35%

71%

23%

SEPARATED EMPLOYEES WHO SELECT AMONETARY OPTION OFTEN DON’T REALIZE

...how long it takes to land another job.

...what is required fora successful careertransition.

...they may need to acquire additional training / learn

new skills.

...the tax implications of a monetary payout.

of organizations use retention bonusesto hold on to top executives during change.75%

½ are negotiated case by case.

⅓ calculate bonuses based on years of service.

⅕ calculate bonuses based on performance.

5.36 months (on average) added to their salary

LOOKING AHEAD:

organizations report severance benefits have stayed the same in the past 3 years.

plan to change their severance plan within the next 12 months.

plan to increase benefits/pay.

1 in 2

1 in 4

3 in 5

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.

www.right.com

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Use this research to: • Benchmark employee termination and severance practices• Understand the role of outplacement.• Compare your practices with broad-based norms.

Contact your local Right Management office to request a copy of the research

http://www.right.com/contact/office-locator/default.aspx