Rework your severance plan: More prospective employees seeking this safety net

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in Discrimination and Harassment,Employee Benefits Program,Firing,HR Management,Human Resources,Leaders & Managers,Management Training

Even if your company has avoided layoffs, it's still time to rethink whether your severance plan is achieving its goal, and if it's legally sound.

Reason: Having suffered through layoffs, more prospective employees want assurances that they'll be taken care of if they're ever told to take a hike.

A new study by TrueCareers, an e-cruiting business affiliated with Sallie Mae, reports that nearly two-thirds of 1,128 job-seekers say negotiating severance agreements at the outset is an important factor when taking a job. Of this group, one in five said they've learned their lesson after getting burned in layoffs.

Also, high-profile severance squabbles at companies like Enron Corp. are putting all employees on notice. In late December, laid-off Enron employees staged a letter-writing campaign to get answers from company executives on their severance benefits. The trouble: contradictions between the company's stated severa...(register to read more)

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