FACTFINDER
February 2017


A Better Way to Part

You may have wide leeway in choosing severance package components.



THE RIGHT WAY TO DISMISS AN EMPLOYEE

Along with death and divorce, losing your job is a top anxiety producer. Departing employees and employers rely heavily on employment transition services to ease the blow.

About 80% of American companies provide transition services. Each separation has its own circumstances, severance situations, and potential legal consequences -- all of which may be dependent on whether mid-level or senior staff is involved -- so it's best to resist the temptation to develop an ironclad procedural formula. Instead, develop a package that addresses the particular, central issues at hand.

Here are some important factors to consider:

  • Tailor a severance package to meet organization and employee's needs,absent an employment contract. Naturally you should avoid inequities protected by law. You may have wide leeway in choosing package components. Be willing to make an honest self-assessment to assure you make the right decisions.

  • Take a realistic view of how much time is needed to find the next opportunity. Aim to provide sufficient time, pay, benefits, and support to quickly and methodically move the employee forward. To determine this, consider job level, compensation, age, service, life-style, and labor market conditions.

  • Be open to support from a professional consultant who can help you transform job loss into a win-win success story. Objective, disinterested, and experienced advice and counsel are essential to a smooth transition for both parties.
HRA provides expert professional consulting support to reduce exposure and to develop thoughtful options that benefit the departing employee as well as your organization.Call HRA Services, Inc. at (610) 869-4494 or email us now.