ASE Releases Results to the 2024 Severance Pay, Policies, & Practices Survey

Troy, MI – February 14, 2024 – ASE, one of the nation’s oldest and largest employer associations, has released its Severance Pay, Policies, & Practices Survey. This survey provides a comprehensive look at the various aspects of severance policies and programs, including severance benefits, outplacement assistance, and executive severance plans.

Highlights of the ASE 2024 Severance Survey include:

• 58% of employers reported providing severance benefits in the last 12 months, whereas only 18% provided outplacement services.
• Most organizations (42%) do not maintain formal or written severance policies.  In fact, just 22% of employers reported they maintain formal severance plans and polices.
• Years of service was the main basis for the calculation of severance benefits (76%), followed by salary/pay (38%), and position (32%).
• One week of pay per year of service was the most common formula that employers use to determine severance pay (57%), followed by two weeks’ pay per year of service (24%).
• Although 29% of employers experienced a reduction in their workforce in the last 12 months, only 41% provided outplacement benefits to those affected.

The 2024 Severance Pay, Policies, & Practices Survey findings were announced by ASE President and CEO, Mary E. Corrado. “The survey results highlight a potential gap in the current landscape of employer practices, suggesting the need for businesses to formalize their policies around severance benefits. Establishing clear and comprehensive severance policies is not just a best practice but a crucial component in fostering a supportive work environment and ensuring consistent application of policies.”

Background information on the 2024 ASE Severance Pay, Policies, & Practices Survey

125 organizations from across Michigan participated. Organizations with 100 employees or less nationally made up approximately 39% of the survey sample, while organizations with 101-499 employees nationally represented 40% of the sample. The remaining 21% of the sample came from organizations with more than 500 employees. A variety of industries have been represented in the survey, with Durable Goods Manufacturing (45.6%) leading the pack. Trades and Services (22.4%) was the second-largest industry representation.

This survey is available at no cost to ASE Members via the ASE Survey Library. It is available for $415 for non-member participants and $825 for non-member non-participants. Email Kevin Marrs at kmarrs@aseonline.org to request to purchase.

About ASE

ASE is employers trusted partner for Everything HR.  ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations and help them THRIVE.  ASE strengthens organization’s HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues. Learn more about ASE at www.aseonline.org.

By Heather Nezich, courtesy of SBAM-approved partner, ASE.

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