Severance Packages: What Employers Should Know [INFOGRAPHIC]

Brittany Schlacter

When it comes to employees leaving your company, it’s best not to wait until the last minute to think about your severance packages. Whether the employee is laid off, retiring, or simply moving onto their next career opportunity, there’s a lot you should know about the common options for benefits and what’s best for your company and the employee. Do you offer your employees severance packages?

Sixty percent of businesses have severance plans in place for their employees, and 62 percent of severance policies come from company policy and local or national law. When it comes to financial compensation, it’s generally offered in a lump sum — while some of the other most common benefits provided in severance packages include assistance programs, continued benefits, and company resources.

Severance packages differ greatly from company to company, and they also depend on the employee’s years of service in the position they’re leaving, pay level, the size of the company, business sector, and the cause of their leave. Terms for severance packages are often written into employee contracts. It’s also important to note that, if the employee is being terminated based on poor performance, they won’t gain access to a severance package.

Get the facts about severance packages with help from the following infographic by CareerShift, a comprehensive job hunting and career management solution for corporations seeking to offer outplacement assistance to former employees.

Do you offer your employees severance packages?

Brittany Schlacter

Brittany Schlacter graduated from Ball State University with a B.S. in public relations and a minor in fashion. Before joining Come Recommended as a content creator trainee, she gained valuable experiences in public relations, community management, blogging, integrated marketing, and business operations.

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