Previous Recession Spurs Better Severance Packages Today

Lee Hecht Harrison releases 2008-2009 Severance & Separation Practices
Benchmark Study

WOODCLIFF LAKE, N.J., March 30 /PRNewswire/ -- 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."

About Lee Hecht Harrison
Lee Hecht Harrison offers talent management solutions throughout the entire
employee life cycle to help companies and individuals maximize performance and
achieve success. Established in 1974, Lee Hecht Harrison is a global talent
management solutions company with over 240 offices worldwide providing
expertise in Career Transition, Leadership Consulting and Workforce Solutions.

Lee Hecht Harrison is a part of Adecco Group, the world leader in workforce
solutions with over 6,600 offices in over 70 countries and territories around
the world. For more information, please visit LHH.com.

SOURCE Lee Hecht Harrison

Anthony Guerrieri, +1-917-434-4296, Anthony.guerrieri@adeccona.com; or Bo
Park, +1-646-351-8112, bpark@mww.com, or Jared Kreiner, +1-212-827-3759,
jkreiner@mww.com, all for Lee Hecht Harrison