Corps. Giving More to Ease Execs Out
According to outplacement and strategic career services firm Drake Beam Morin (DBM), the average severance pay given to mid-level execs hit 14.3 months during 1996. In 1995, execs were seeing an average of 9.9 months in severance pay (see chart below).
Whether it will be seen as a Band-Aid approach to limit what laid off employees will say about companies when they leave, or whether it's good business, remains to be seen, but here's a trend that's definitely worth paying some attention to - given that businesses are continuing the practice of trying to do more with less.
Although the practice certainly can't be considered a morale booster or a savvy internal communications move, it could serve a company well when the media decides to dig a little during a downsizing and find out how they treat the victims. (Remember, simply boxing up an employee's valuables and bidding him adieu with a security escort isn't the way to go.) (DBM, 212/826-6662)
And Some More News About Departed Employees
| Severance Pay Hits Pay Dirt | ||
|
|
1995 | 1996 |
| Male | 558 | 404 |
| Female | 200 | 122 |
| Average Age | 45 | 46 |
| Severance Pay | 9.9 months | 14.3 |
| Time in Old Job | 12.1 years | 13.1 years |
| Severance per year of svc. | 4/5 mo/year | 1.1 mos/year |
In another study by DBM, researchers found that more than half of the candidates in outplacement (after going through a downsizing) were able to land a larger salary than the one they left behind. According to the study of high-level execs finding new positions, 60 percent attracted higher salaries, with an average claiming $83,945 in their new roles (up from a previous salary of $81,738).
Those in PR certainly haven't gone unscathed by the trend to downsize but this report might you give you a boost if you're scouting who your next employer will be. (DBM, 212/687-8999)
Philanthropy: Do Your Homework
The impact of your philanthropic endeavors are sure to be lost in the fray if you don't make prudent decisions when deciding on the humanitarian face you're going to present to the world. That, according to The National Commission on Philanthropy and Civic Renewal's recently released Road Map to Giving in America. Their advice? These 10 key steps:
1. Give locally;
2. Learn the basics about the program (i.e., know what's it all about);
3. Establish a goal;
4. Evaluate what works (focus on what the organization can do in specific communities);
5. Watch where the money comes from;
6. Watch where the money goes;
7. Know the board members;
8. Visit the site;
9. Consider faith-based charities; and
10. Be entrepreneurial.
(National Commission on Philanthropy and Civic Renewal, 202/463-1460)