The study of more than 1200 business leaders from 45 countries shows a company’s decisions about separating employees, including severance pay, outplacement support, and other continuing benefits, can create ripple effects across the entire enterprise long after the departing employees have left the organization, even affecting the company’s brand and public image. Key findings include:
• Companies consider separation practices as part of an overall strategy to preserve and strengthen the relationship between the organization and its disparate constituents.
• Most organizations provide severance to at least some of their employees with almost half offering severance to all of their employees, including part-time employees.
• Most organizations with 100 or more employees provide outplacement to some terminating employees.
“In today’s marketplace, organizations recognize that support for departing employees is a requirement of business rather than an option,” said Robert Gasparini, CEO and Chairman of DBM. “Separation policies are now viewed as integral to business strategy, helping to safeguard the company brand and reinforce relationships with employees, consumers and stockholders.”
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