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Benefits April 1, 2009
Majority of Firms Planning No Changes to Severance Policies
April 1, 2009 (PLANSPONSOR.com) - The only good news
for employees that may lose their jobs due to the tough
economy is that the majority of firms are not planning to cut
severance pay or benefits.
Reported by Rebecca Moore
Right Management found that two-thirds (67%) of organizations surveyed are not planning to make changes to their severance policies within the next 12 months. Eleven percent said they were going to increase severance benefits and/or pay, and only 16% said severance benefits and/or pay would be decreased.
Sixteen percent reported they will make other changes besides to benefits or pay.
According to George Herrmann, Executive Vice President of Americas at Right Management, the findings are consistent with research Right Management conducted on the topic six months ago. “It appears that once a severance policy is established, changes are made infrequently – regardless of market conditions,” he said in a press release.
Herrmann added that companies realize brand building happens in good times and in bad. “Their severance practices need to be consistent with their organization’s culture and how it treats its people,” he said.
Right Management surveyed 461 human resource professionals in the United States in February 2009.