FOR IMMEDIATE RELEASE – DECEMBER 17, 2008 – SOUTHFIELD, MICH. – The American Society of Employers (ASE), a leading human resources and employer services organization, recently surveyed more than 200 Michigan employers on severance pay, policies and practices for 2009. Specifically, the survey analyzed severance benefits, assistance and outplacement, continuation of benefits, separation agreements and executive severance plans.
“During these tough economic times, it’s interesting that only 36 percent of organizations have a formal written severance policy and only 13 percent of those without a formal policy intend to create one in the next 12 months,” explained Mary Schroeder, president of ASE. “Intriguing data from the ASE Severance Pay, Policy and Practices Survey show that many Michigan employers offer outplacement benefits to help those affected by a workforce reduction or layoff, including resume writing, job search assistance and interviewing skills.”
The 2009 ASE Severance Pay, Policy and Practices Survey includes responses from employers throughout Michigan who are ASE members. Key survey findings:
- Overall, 34% of organizations have one severance pay that covers all employees, while 25% of organizations do not offer severance.
- The majority of respondents report that, below the CEO level, severance pay is calculated as one week of pay per year of service.
- Only 36% of organizations have a formal written severance policy, and of those organizations that do not have a formal written policy, only 13% intend to create one in the next 12 months.
- 48% of organizations offer outplacement benefits to those affected by a reduction in force or layoff, with only 19% providing services to all or most employees affected. Employers reported specific outplacement services:
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Resume writing
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89%
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Job searching assistance
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85%
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Interviewing skills
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76%
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Coaching/Counseling
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70%
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Group workshops
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62%
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Office space
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30%
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About American Society of Employers
The American Society of Employers is a not-for profit human resource organization with more than 1,000 member organizations across the state of Michigan. The American Society of Employers has been in business for more than 100 years and has conducted surveys for more than 50 years. In addition to providing timely benchmark data on critical human resource issues, the American Society of Employers provides direct support for members through training and recruiting. For more information, visit www.aseonline.org.