The Latest Thinking on Severance Packages

Posted by: Emily Thornton on February 2, 2009

It used to be a given that companies would pay employees one or two weeks of severance for every year they worked at a company. A recent survey conducted by the Society for Human Resource Management(SHRM) showed that 74% of companies offer severance pay. But the make up of those packages seems to be changing as more companies are forced to reevaluate what they can afford to do.

One approach: Some companies apparently hope to make up for providing less severance by offering more services. Deb Cohen, SHRM’s Chief Knowledge Officer, says that packages are skewing towards things that the organization can do, like having their own human resource professionals help people with outplacement services. “We’re going to see more creativity in 2009,” she predicts.

Reader Comments

Kathryn

February 27, 2009 3:29 PM

I was wondering if there was an article to correspond with this post?

Senior Writer Emily Thornton

March 1, 2009 1:56 PM

Hi Kathryn.
I'm afraid there isn't a story concerning this specific point. But this is an area that is important to BusinessWeek that we are covering from a wide variety of angles. For example, we recently ran a story about how employees are suing employers over alleged violations of severance laws. I've included a link to the story below in case you're interested. Hope helps.
best,
Emily

http://www.businessweek.com/magazine/content/09_09/b4121052747799.htm?chan=magazine+channel_top+stories

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