Daily NewsView All News
Top executives in the United States trail in severance benefits, according to Right Management, the workforce consulting division of ManpowerGroup Inc. (NYSE: MAN). The study, “Severance Practices Around the World,” found U.S. top executives earn a severance of 3.16 weeks per year of service when involuntarily separated compared with a global average of 3.48 weeks. China ranked highest at 4.24 weeks per year of service.
Severance practices vary by country and industry, according to the study. Three out of four companies surveyed said their company had a formal, written severance benefits policy. Companies in Asia Pacific show a noticeably higher incidence of formal severance policies, 82 percent, compared with 73 percent of companies in the Americas and 72 percent in Europe.
“The increasing importance of talent to an organization's success has created a new focus on how severance practices, as part of a broader workforce strategy, can impact a company’s brand value,” said Bram Lowsky, Right Management’s group executive vice president and global head of career management. “
The research included input from more than 1,800 senior executives and human resource professionals from 19 countries and 19 industries.