A severance package can seem somewhat silly. Why should you offer money to someone who will no longer be working for you? The reality is that any time you terminate someone, you should offer severance pay — or at least strongly consider it.
Remember that before you initiate termination, you always want your employment attorney to double-check that you’re in compliance with all laws and that your documents are in order. You also want to be consistent in when you offer severance pay.
With that in mind, here’s when severance packages make sense.
To keep reading, click here: Why You Should (Almost) Always Offer Severance Pay
Maybe more of a variation on #2, but I’d add “when it makes firing someone easier.”
Too many managers/companies hesitate to fire people for poor performance because they don’t want to feel like the bad guy, Providing severance can make people feel better about letting someone go.
Rather: always looking for reasons to terminate-and-outsource. Money saved on salary and severance is available for bonuses and dividends, no?
Long-term, it’s hard to pay bonuses or dividends if your company doesn’t make money. Hard to make money if work doesn’t get done.
Work gets done under outsourcing; it just shifts responsibility for coordinating across time zones to the remaining terrified-and-sleep-deprived tech leads. Can’t argue with the most magical place on Earth! https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/disney-it-outsourcing.aspx