Thursday, December 18, 2008

News You Can Use: U.S. offers lowest severance worldwide

As the number of layoffs nationwide mounts higher, it seems employees who are terminated aren't walking away with much. According to survey by Right Management, U.S. employers offer the lowest amount of severance regardless of seniority and/or tenure.

Studying 28 countries, Right Management finds even top execs leave with as little as 2.76 weeks of severance per year of service, compared to an average 3.39 weeks per year of service for other countries.

5 comments:

Anonymous said...

I hate to say it, but this is part and parcel of actions like (1)dumping pensions to the PBGC during bankruptcies (started by United Airlines) and (2) the of lack statutes requiring employers who are off-shoring large operations to provide meaningful workforce and community remdiation as part of their departure. Its done because employers know they can get away with it.....

Anonymous said...

How do the unemployment rates compare to the U.S.? Just looking at severance alone doesn't tell much.

Anonymous said...

Does the survey describe what is included in the severance?
Base Pay?
Automobile Allowance?
Management Bonus?
Benefits?
SERP?
401(k)?

EBN Editor Kelley M. Butler said...

You know, the survey doesn't compare unemployment rates or break out what exactly is included in severance. From the wording, it looks like it only includes base pay, but don't quote me on that.

However, I disagree that comparing unemployment rates would give a better picture of how low is "low" regarding severance. Other nations are undergoing the same economic squeeze as we are, and seem to find a way to give terminated workers more than a pat on the back and a final paycheck. I personally find it disheartening for a nation that champions its average worker spirit and history.

Anonymous said...

Unemployment statistics are irrelevant as Kelley Butler said (and considering that various nations measure the statistic differently). More meaningful is "at-will" employment in the States that isn't replicated in other countries. More telling is the larger relative severance given to U.S. top execs over U.S. lowest level employees vs. worldwide (voluntarily separated top U.S. execs get 124% more than "all other" U.S. employees...worldwide top execs get only 27.9% more than "all other" worldwide employees). Just another example of the entitlement mentality at the highest levels of corporate America.