Electronics Industries Fall Below Average In Severance Packages
A recent survey conducted by Lee Hecht Harrison, an outplacement firm based in Woodcliffe, NJ, found that severance packages are more generous than three years ago (New York Times, November 29, 1998, section 3, page 6). However, computer software and hardware manufacturers were among the “stingiest” in the national survey.
The chief officer at Lee Hecht Harrison explains that the tight job market demands that employers fight to retain current employees more than ever, and by providing services to departing employees, the remaining employees will begin to view the company as an employer of choice because it treats even departing employees well. Among the findings:
- more companies are extending benefits after severance
- temporary employees are eligible for severance pay at 7% of the companies
- 20% help temporary employees find jobs elsewhere
- 30% of companies offer job placement services
- top-level employees receive 11-39 weeks’ severance pay, while others receive 5-27 weeks’ pay.