severance packages.

how to use this data

The chart here illustrates who employers provide severance to. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time.

Job grade levels generally dictate who will likely receive severance, but practices vary widely by markets, sector and company size. Review our data here to compare your company’s policies with others.

key highlights

• 33% say all employees are eligible, and half (50%) say their top leadership are.
• Most (79%) life sciences employers offer severance to top leadership, while just 40% in banking and financial services do so. At the same time, only 4% of life sciences companies offer severance to all employees, while 43% of tech companies do.
• 18% of German employers offer severance to entry-level workers, the highest of markets. In the U.K., just 2% do. Most (60%) of German employers also offer severance to all employees, while 20% in the U.S. do.

how to use this data

The chart here illustrates the length of tenure it takes for employees to qualify for severance. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time. Some sample sizes are not statically relevant for this question and are not included.

The most common required tenure (25%) is 3 to 5 years of service. Because of the variance in the data, your company’s practices may differ significantly from this global average.

key highlights

• 14% of organizations globally offer severance right away, while 13% require 5 to 7 years of service.
• Nearly half (48%) of those in life sciences and pharma provide severance right away, compared with just 6% in banking and financial services, where 3 to 5 years of service is the most common (32%).
• In the U.K., 6% of companies require more than 10 years of service — far higher than other markets. In the U.S., 27% say employees are eligible immediately, compared to just 4% in Australia.

how to use this data

The chart here illustrates factors employers use to determine whether severance is paid. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time. Some sample sizes are not statically relevant for this question and are not included.

Respondents rank the criteria from most important to least, and the data indicates there is no single overarching factor. It appears many factors are used in the calculation.

key highlights

• Ownership and equity in the business is ranked the highest factor globally (36%), and in the U.S. (44%) and Australia (39%), but is slightly higher than the base salary (31%) and existing employment agreements (30%).
• Surprisingly, just 27% say job title/role is the most important determinant of severance payout, the second lowest criteria.
• Life sciences organizations most often rank base salary as top criteria (57%), when just 25% rank job/role as highest in this sector.

how to use this data

The chart here illustrates how much organizations pay out based on length of service. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time. Some sample sizes are not statically relevant for this question and are not included.

The most common amount globally is three months of salary, but some companies will provide up to two years of pay, depending on the role, employment agreement and tenure.

key highlights

• While payout amounts vary widely across markets and sectors, 42% of IT and technology companies offer three months; 40% of life sciences and pharma companies offer two months.
• While most tend not to offer severance higher than a year’s salary, a small fraction in the U.K. (2%) offer more than two years of salary.
• Large (27%) and enterprise (24%) companies are most likely to offer 3 months salary, while large enterprise organizations (24%) are most likely to offer 6 months salary.

how to use this data

The chart here illustrates all of the offerings that come with severance packages. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time. Some sample sizes are not statically relevant for this question and are not included.

While monetary benefits are the most common, others are also critical, depending on the market. For instance, healthcare coverage is typically attached to employment in the U.S. where continued coverage is important to talent.

key highlights

• Healthcare continuance is the most common benefit offered in the U.S. (44%), while education or retraining is the least common (18%). Singapore (49%) and Australia (47%) most commonly offer outplacement services, while 42% of U.K. employers offer retirement benefits.
• Life sciences and pharma companies are most likely to offer continued stock options (33%), while banking and financial services companies provide financial planning support most (44%).
• More than any other organizations, large enterprises offer cash payouts (46%) and outplacement services (46%) to downsized employees.

how to use this data

The chart here illustrates how proactive employers are in revisiting their severance policies. Use the filters to view the data by any of the markets, sectors or company sizes listed on the left side of the chart. You will only be able to select one filter at a time. Some sample sizes are not statically relevant for this question and are not included.

Is your company in need of updating its policy? Take a look at the frequency of similar business to determine whether you are staying current with market-leading practices.

key highlights

• 63% of organizations globally say they have made policy changes during the past three years. 56% currently have changes to those policies underway.
• Companies in Australia appear to be the most proactive, with 74% currently revising their policies. 44% in the U.K. are doing the same.
• 91% of life sciences and pharma companies have made policy changes during the past three years, but just 37% expect to make additional updates this year.