WOODCLIFF LAKE , NJ (March 30, 2009) – Lee Hecht Harrison , a leading talent management solutions company, today released its 2008-2009 Severance & Separation Practices Benchmark Study , providing insights into trends in corporate policies. To increase the study's value to employers and employees navigating today's economic environment, the company evaluated the 2008-2009 study against the 2001 edition. The comparisons of separation practices during the two economic downturns reveal broad adjustments made in response to lessons learned from the 2001 recession.

“Since 2001, employers and employees have become more sophisticated about separation best practices,” said Barbara Barra, executive vice president – operations for LHH.“ Employees have taken more control of the negotiation process and employers have diversified their severance offerings. Both sides are working to arrive at a mutually satisfying solution, which is good news.”

Traditionally, severance was based on an employee's years of service. Today, tenure is less important because employees change jobs more often. After 2001, employees learned to dictate their own severance terms through clauses in employment agreements and strategic negotiation. Since 2001:

• The number of employers who consider employment agreements when formulating severance packages increased 157% for officer level employees, 156% for senior executives, 153% for executives, and 100% for employees at the professional level.
• The number of employers who say that negotiation played a role in severance packages increased over 278% for officers, senior executives and executives. This number has increased by 520% for employees at the professional level, and 450% for employees at the administrative level.

Interestingly, the number of companies with formal severance policies dropped 24% since 2001:

• 79% of companies had a written severance policy, compared to 60% in 2008. This trend can be attributed to more companies replacing boilerplate policies with individualized packages

More employers have adopted outplacement as a solution to preserve their employer brand and reputation. In 2001:

• 53% of companies offered outplacement services to all officers and all senior executives compared to 67% in 2008 -- an increase of 26%.
• 50% of companies offered outplacement services to all executives compared to 65% in 2008 -- an increase of 30%.
• 39% of companies offered outplacement services to all exempt employees compared to 55% in 2008 -- an increase of 41%.

Companies have also learned that severance packages lessen the risk of litigation, with more companies requiring releases in exchange for severance packages.

• In 2001, 76% of companies required employee releases in exchange for severance. In 2008, that number rose to 93%, a 22% increase.

“ There is a strong correlation between how a company treats departing employees and its ability to attract and retain top talent now and in the future, particularly when the economy rebounds,” said Barra. “Providing a socially responsible and compassionate career transition service is more than the right thing to do, it's the smart thing to do.”