2012 Survey of Employee Severance and Turnover

Transcription

1 2012 Survey of Employee Severance and Turnover

2 TABLE OF CONTENTS Section I. About Compensation Resources, Inc. 1 II. Study Background 2 III. Participant Demographics 3 IV. Survey Results Severance Healthcare Outplacement Covenants Turnover Copyright 2012 Compensation Resources All Rights Reserved. No part of the report may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Compensation Resources, Inc. This survey has been prepared based on the responses received by Compensation Resources, Inc. Although CRI believes that the data provided by participants was reliable and representative of the practices within responding organizations, the survey results are provided for informational purpose only and without warranty of any kind. The results represented in this survey report should be considered in light of your organization s mission, business plan, strategy, competitive position and the manner in which the information contained herein supports its direction. CRI recommends that this study be used in concert with additional sources of information in order to validate all results. Page

3 I. ABOUT COMPENSATION RESOURCES, INC. Compensation Resources, Inc. specializes in providing comprehensive Compensation and Human Resource consulting services to emerging and mid-sized corporations, as well as Fortune 500 corporations. The primary areas in which we provide compensation consulting services are: Executive Compensation Wage and Salary Administration Litigation Support For more information on our services, please contact: Paul R. Dorf, APD Managing Director Sales Compensation Short and Long-Term Incentive Compensation Custom Surveys 310 Route 17 North Upper Saddle River, NJ (Fax) Diana D. Neelman, CCP Principal, Senior Consultant 1

4 II. STUDY BACKGROUND 2012 Survey of Employee Severance and Turnover Compensation Resources, Inc. is pleased to present the results of our 2012 Survey of Employee Severance and Turnover. The purpose of this study was to obtain current data on the prevalence of various practices affecting severance policies among employers that represent all sizes, locations, and industries. Data was compiled from survey questions that were developed by Compensation Resources, Inc. and distributed to companies in over 11 industries, in addition to Not-For-Profit organizations. The survey sampled severance data from a variety of organizations, collected from February through May There were 133 organizations that participated in this study. This survey reports the different areas of severance. Some of the information reported includes implementation, updates, how often the current policy is reviewed, length of severance, payment methods and paid out. Other major points recorded in this survey are: Healthcare costs and coverage Outplacement eligibility and services Covenants Turnover statistics and trends, covering both voluntary and involuntary turnover, as well as various processes and procedures undertaken as part of an organization's tracking, are also included based on a cross section of industries. 2

5 III. PARTICIPANT DEMOGRAPHICS All Companies Reported REVENUE 3

6 All Companies Reported SIZE OF COMPANY (# OF EMPLOYEES) 4

7 All Companies Reported PUBLICLY-TRADED, PRIVATELY-HELD, OR NOT-FOR-PROFIT 5

8 All Companies Reported INDUSTRY 6

9 REGION Region % Region % Region % Region % Region % 7

10 Organizations document their severance plans by: General written Written plan document guidelines No written documents Other All Participants 39.6% 28.8% 22.5% 9.1% Company Type Publicly-traded 51.5% 36.4% 9.1% 3.0% Privately-held 27.8% 33.3% 30.6% 8.3% Not-for-profit 40.5% 19.0% 26.2% 14.3% Revenue/Budget Less Than $9.9 Million 26.7% 26.7% 33.3% 13.3% $ $49.9 Million 26.1% 26.1% 39.1% 8.7% $ $99.9 Million 40.0% 20.0% 20.0% 20.0% $ $499.9 Million 29.6% 37.0% 25.9% 7.4% $ $999.9 Million 70.0% 30.0% 0.0% 0.0% More Than $1 Billion 61.9% 28.6% 4.8% 4.8% Organizational Size Less Than 50 Employees 18.2% 27.3% 36.4% 18.2% Employees 0.0% 22.2% 55.6% 22.2% Employees 32.3% 32.3% 29.0% 6.5% Employees 47.4% 10.5% 26.3% 15.8% 1,000-1,999 Employees 54.5% 36.4% 9.1% 0.0% 2,000-4,999 Employees 50.0% 41.7% 8.3% 0.0% 5,000-9,999 Employees 57.1% 42.9% 0.0% 0.0% More Than 10,000 Employees 63.6% 27.3% 0.0% 9.1% 17

11 General written Industry Written plan document guidelines No written documents Other Utilities 9.1% 18.2% 51.5% 21.2% Manufacturing, Durable Goods 36.4% 45.5% 9.1% 9.1% Manufacturing, Nondurable Goods 30.0% 30.0% 40.0% 0.0% Retail,Wholesale and Transportation 50.0% 16.7% 33.3% 0.0% Publishing, Media, and Telecomm. 22.2% 55.6% 22.2% 0.0% Finance, Insurance, and Real Estate 47.6% 14.3% 23.8% 14.3% Services (Business & Professional) 44.0% 32.0% 24.0% 0.0% Biotechnology & Pharmaceutical 75.0% 25.0% 0.0% 0.0% Educational 33.3% 33.3% 0.0% 33.3% Health Care and Social Assistance 33.3% 27.8% 16.7% 22.2% Public Administration 50.0% 0.0% 50.0% 0.0% General written Region Written plan document guidelines No written documents Other Region % 25.6% 28.2% 2.6% Region % 46.7% 20.0% 0.0% Region % 35.7% 14.3% 14.3% Region % 25.0% 21.4% 21.4% Region % 20.0% 20.0% 6.7% ***Other responses include : Per case basis, not published, separate severance documentation, termination or request by team member, and employment agreements 18

12 Events attributable to a higher turnover rate: Events attributable to a lower turnover rate: Other Responses: Voluntary termination Career change Retirement Lack of career opportunity Poor performance Improved job market Other Responses: Lack of available jobs Poor economy 68