Thursday, February 5, 2015

RiseSmart Uncovers Disconnect Between Intent and Practice for Offering Severance RiseSmart's severance survey provides detailed industry benchmarking data



SAN JOSE, Calif., Feb. 3, 2015 /PRNewswire/ -- RiseSmart, the leading provider of contemporary career transition services, recently released its Guide to Severance and Workforce Transition, which was based on a survey of more than 250 U.S. Human Resources professionals. The guide offers in-depth benchmarking data related to severance, benefits and outplacement across industries and geographies. One key finding of the survey was the disconnect between why companies offer severance and how severance benefits are being implemented.


"When asked why they provide severance, the majority of the HR professionals selected as their top three reasons to 'take care of employees,' 'limit company liability,' and 'protect employer brand,'" said Sanjay Sathe, president and CEO of Rise Smart. "But based on the actual benchmarks, the actions companies take when implementing a severance policy don't necessarily support those goals."

While the number one reason respondents gave for offering severance was to "take care of employees," the survey found that, on average, 39 percent of employers do not offer severance to all employees. In some industries, such as banking/financial markets, the percentage of employers that do not offer severance to all employees was even higher at 56 percent.

More than 250 HR professionals across 16 industries in the U.S. participated in the study, many of whom held the title of vice president or director of human resources. While representatives from organizations at all sizes chose to participate, at least 34 percent were from Fortune–ranked companies.

"RiseSmart conducted this survey in order to provide other leaders in the human resources field with industry-specific data on what their competitors and peers are offering to employees," Sathe said. "These findings provide a valuable insight on industry sentiment and actual policy and how they may differ in practice."

The industries represented in the survey include automotive, health care, banking and financial markets, computer software, telecommunication and electronics, wholesale and retail, construction and manufacturing, and information technology, as well as others. In addition to severance, the study also looked at other benefits, including outplacement, redeployment, and health plan continuation.

For a comprehensive look at the results of the survey and to download a copy of the Guide to Severance and Workforce Transition, visit www.risesmart.com.

About RiseSmart

RiseSmart is a leading provider of contemporary career transition services that strengthen employer brands, improve retention and re-engage talent. RiseSmart's contemporary approach to outplacement combines personalized services from trained professionals with unmatched technology delivered through a convenient, cloud-based platform. High-performing organizations in more than 40 industries rely on RiseSmart's outplacement solution, RiseSmart Transition, to help former employees find new jobs faster. Landing rates exceeding 80 percent and time-to-placement averages more than 60 percent faster than national averages have helped make RiseSmart the nation's fastest-growing outplacement firm. RiseSmart's innovative approach to human capital management has earned the company a wide range of awards and recognition from organizations including Bersin by Deloitte, the Best in Biz, Gartner Inc., the Golden Bridge Awards, GreatRated!, LAROCQUE, the Momentum Index, Red Herring, the San Francisco Business Times, SiliconIndia, the Silicon Valley/San Jose Business Journal, the Stevie Awards and TIE. Additionally, RiseSmart's outplacement solution has earned the exclusive endorsement of the American Hospital Association. For more information about how enterprise career management can help you, visit www.risesmart.com.

Source: PR Newswire

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