Our robust global study of severance practices includes data from 19 countries and 19 industries with input from over 1,800 professionals. In the Human Age, it takes talent for organizations to succeed. Operating in a volatile global economy means frequent challenges to realign talent. Companies need to be prepared for the possibility of change by putting competitive severance practices in place. Taking care of departing employees affects future retention and recruitment efforts as well as engagement and productivity of remaining employees.

1. SEVERANCE PRACTICES
AROUND THE WORLD

2. HOW IS SEVERANCE DETERMINED?
52%
By company
policy
25%
23%
By national or
local law
Combination of
company policy
& national/local
law

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

4. DID YOU KNOW…
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.

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

6. Taking into account how
severance practices vary by country
is essential for any effective
global workforce strategy.

7. Most common benefits
Department Heads, Managers &
Supervisors - Involuntarily Separated
Outplacement Assistance
Health Related Benefits
Monetary Benefits
Company Resources
Global
69%
40%
23%
8%
Americas
71%
56%
20%
6%
Europe
Asia Pacific
65%
29%
20%
9%
72%
39%
31%
9%

8. Severance is a complex and sensitive
responsibility. It is essential employers get
it right as it can have a dramatic impact
not only on the engagement of employees
who remain but also on those who might
be considering employment with the
company in the future.

9. 68
%
of companies globally
provide outplacement where
it is not legally required.

10. DOES YOUR COMPANY OFFER MONEY
INSTEAD OF OUTPLACEMENT?
Most employers offer outplacement before monetary incentives.
Global
Public
Corporation
Public Sector
Government
Agency
Private
Corporation
Not For
Profit
59%
53%
61%
71%
36%
40%
35%
23%

11. SEPARATED EMPLOYEES WHO SELECT A
MONETARY OPTION OFTEN DON’T REALIZE
...how long it takes to land
another job.
...they may need to acquire
additional training / learn
new skills.
...what is required for
a successful career
transition.
...the tax implications
of a monetary payout.

12. 75
%
of organizations use retention bonuses
to hold on to top executives during change.
½ are negotiated case by case.
⅓
⅕
calculate bonuses based on years of service.
calculate bonuses based on performance.
5.36 months (on average) added to their salary

13. LOOKING AHEAD:
1 in 2
organizations report severance benefits
have stayed the same in the past 3 years.
1 in 4
3 in 5
plan to change their severance plan within
the next 12 months.
plan to increase benefits/pay.

14. 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 study
Right 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

15. 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
DOWNLOAD
http://www.right.com/contact/office-locator/default.aspx