Severance packages are like parting gifts from an employer that say 'sorry things didn't work out.' Forty-five percent of you said you'd volunteer to give up your job if your boss asked for volunteers, and if that were reality you'd be rewarded with a severance package.
Because most companies use their own formulas for determining severance, it's difficult to predict how much severance you'd get should a pink slip come your way. CNN Money talked to several human resources experts about the severance patterns they've been tracking. To see what you could expect in a severance package, read more.
- 31 percent of employers offer one week's salary per year of service.
- 20 percent of employers provide two weeks salary for every year of service.
- Example of a generous severance package: Fidelity Investments laid of employees this month, and they will stay on the payroll until the end of the year and remain eligible for a year-end bonus. After that, each will receive a payout based on their salary and years of service.
- Example of a less generous package: DHL recently laid off 9,500 employees, and most will receive two weeks pay, plus an additional week for each year of service, and will be reimbursed for any unused vacation time.
- Higher-ups don't get the standard package; for those making $100,000 or more a year a generous severance package is six months pay.
Laura Ashley
Worst severance package I've ever heard of: The money was deposited into your 401(k). Over a three-year period. I don't care if they give me triple my salary, it does me no good in my 401(k)when I'm 31. Thankfully, this was not my company.
1valancyjane, that sounds horrible. I was wondered what was being offered in severance packages - interesting to know in case you can negotiate.
2I've been laid off twice. The first time, I was at my job for six years. The second time, I was only there for six months. Both times, I got six weeks severance.
3i never know what to make of these, and honestly, i always thought that it was more than that. i guess i'll just have to cross my fingers that things work out in my company since i've only been here for just over a year - and that won't tie me over i don't think. there are some VERY scary timeS!
4These are scary times. I honestly thought 1 week per year of service was the norm. I can't see how putting money in a 401k for you would be of any help at all. Do you know what company did that valancyjane?
5my office gives two weeks salary (+ unused leave). it's a very small company. I would expect more from a larger company.
6I just spoke to an HR person. Guess companies don't have to give any severence package so we should be grateful for whatever they decide to give us. After all, the less they give you the more the exec's can have for themselves.
7lazybones is right, severance payments aren't required by law.
i was laid-off from my job this year, and only got one week's severance (and i worked there for two years). i was not pleased, but it's better than nothing, i suppose.
8I am so sorry to hear that carhornsinapril. Where did work? How are you doing?
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