Less than one-third of HR professionals reported that their company has a written severance pay policy, according to a recent Compensation.BLR.com poll.
When asked "Does your company have a written severance pay policy?," 37 percent responded "No, we pay severance but don't have a written policy," while just 28 percent responded "Yes." Meanwhile, 35 percent responded "No, we don't offer severance pay."
The poll's findings were roughly in keeping with a recent study by WorldatWork and Innovative Compensation and Benefits Concepts LLC, which found that just over a third of U.S. companies had a written severance pay policy, and of those that did, a large majority had not reviewed it in the past 12 months.
The study's author, Bob Jones, JD, CPA, CEBS, stressed that not only should employers have written policies in place, but should review them on a regular basis "in order to ensure that plan costs are being prudently monitored."
The Compensation.BLR.com poll included 192 respondents.