New LHH “Severance & Separation Benefits Benchmark Study” Reveals A Renewed Employer Focus On Severance Policies
LHH, the leading global provider of talent and leadership development, career transition and coaching, released the eighth edition of its Severance & Separation BenefitsBenchmark Study, which provides insights to help organizations and HR teams make informed severance and separation decisions as part of their workforce strategy. With the global pandemic as its backdrop, the 2020 survey revealed that more employers are developing formal severance and separation policies and reevaluating the resources available to current employees during separation.
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“Over the past several months, it has become clear that companies must have a fair, comprehensive and competitive severance and separation package in order to show respect to current employees and protect the organization’s employer brand for future talent acquisition,” said John Morgan, chief operating officer and executive vice president of LHH Americas. “In the current environment, it’s very important for employers to realize that how they navigate employee severance and separation can set them up for success when it comes to attracting new talent in the future. Today’s candidates will remember how employers maneuvered this period and they are watching to see what happens next.”
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Companies are Focused on Providing Adequate Severance and Separation Policies
According to the survey, over two-thirds (68 percent) of companies have reviewed their severance policies within the last two years – a slight increase from 2018 (67 percent). Companies are realizing the benefits of keeping their severance and separation practices relevant. In fact, 37 percent of companies made their severance policies more generous in 2020 – more than double the companies that reported improving their plans in 2018. Additionally, companies are documenting plans better than before, placing an emphasis on clearly communicating their policies to employees. More than 80 percent of 2020 respondents offer well-documented severance plans to employees – a significant increase from the 64 percent of companies who did so in 2018.
Companies Have Opportunities for More Innovative Reskilling Programs
Keeping in line with previous years, 76 percent of organizations state that the responsibility they feel to take care of their workforce is the driving force for offering outplacement and training services. Most companies (53 percent) expect their outplacement programs to offer a blend of technology and in-person coaching resources, including both group and more personalized coaching settings.
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