Troy, MI – February 14, 2024 --- ASE, one of the
nation’s oldest and largest employer associations, has released its Severance
Pay, Policies, & Practices Survey. This survey provides a comprehensive
look at the various aspects of severance policies and programs, including
severance benefits, outplacement assistance, and executive severance plans.
Highlights of the ASE 2024 Severance Survey include:
- 58%
of employers reported providing severance benefits in the last 12 months,
whereas only 18% provided outplacement services.
- Most
organizations (42%) do not maintain formal or written severance
policies. In fact, just 22% of employers reported they maintain
formal severance plans and polices.
- Years
of service was the main basis for the calculation of severance benefits
(76%), followed by salary/pay (38%), and position (32%).
- One
week of pay per year of service was the most common formula that employers
use to determine severance pay (57%), followed by two weeks’ pay per year
of service (24%).
- Although
29% of employers experienced a reduction in their workforce in the last 12
months, only 41% provided outplacement benefits to those affected.
The 2024 Severance Pay, Policies, & Practices Survey
findings were announced by ASE President and CEO, Mary E. Corrado. “The survey
results highlight a potential gap in the current landscape of employer
practices, suggesting the need for businesses to formalize their policies
around severance benefits. Establishing clear and comprehensive severance
policies is not just a best practice but a crucial component in fostering a
supportive work environment and ensuring consistent application of policies.”
Background information on the 2024 ASE Severance Pay,
Policies, & Practices Survey
125 organizations from across Michigan participated.
Organizations with 100 employees or less nationally made up approximately 39%
of the survey sample, while organizations with 101-499 employees nationally
represented 40% of the sample. The remaining 21% of the sample came from
organizations with more than 500 employees. A variety of industries have
been represented in the survey, with Durable Goods Manufacturing (45.6%)
leading the pack. Trades and Services (22.4%) was the second-largest industry
representation.
This survey is available at no cost to ASE Members via the ASE
Survey Library. It is available for $415 for non-member participants and
$825 for non-member non-participants. Email Kevin Marrs at kmarrs@aseonline.org to request to
purchase.
About ASE
ASE is employers trusted
partner for Everything HR.
ASE is a non-profit, membership organization – everything we do is based on the
needs of members and to drive the success of their organizations and help them THRIVE. ASE strengthens organization's HR
departments by offering member benefits and discounted services that span the
entire employee lifecycle including recruitment, development, and retention
while minimizing compliance risk. We provide our members guidance through new
legislation and workplace issues. Learn more about ASE at www.aseonline.org.
