Some data showing how companies calculate severance pay packages for different types of employees.
Downsizing affects small companies as well as large ones. In a recent survey, 66% of all companies with fewer than 100 employees said they had a severance policy, and 51% of those policies were in writing. Severance was based solely on years of service at 31% of the companies. Here's how the companies with policies calculated severance pay for different types of employees:
Percentage that paid that severance to . . .
1 week's pay per year
2 weeks' pay per year
3 weeks' pay per year
1 month's pay per year
More than 1 month's pay per year
* * *
Note: Numbers have been rounded.
Source: "A Benchmark Study: Severance," Lee Hecht Harrison, New York City, 1995.