Significant Severance Cost Reduction
Severance benefits when utilized are a significant cost burden to companies.
Our Severance Value Maximizer™ Service is utilized by Fortune 500 companies seeking ways to reduce the total net cost and administrative burdens of their severance programs, while enhancing displaced employee benefits and support. Some of the benefits are as follows:
- An average net reduction in total severance cost of $400k-$500k for every 100 employees displaced
- Increase in employee benefits by 7.65%
- Outsourcing the majority of the administrative burden for displaced employees
- Plan design, implementation, and launch within 30-45 days (with TMS doing the heavy lifting)
Complimentary Savings Impact Estimate - By Request
We offer a complimentary no-risk severance cost reduction estimate within a week of you providing us with prior year data or a case study scenario. This report will provide a detailed side-by-side comparison of your current program with our Severance Value Maximizer Service. Contact us for your complimentary Savings Impact Estimate.
Other Key Considerations
- An average net reduction in total severance cost of 30%
- Quick break-even on investment (typically with first layoff).
- Smoothing out of cash flow for severance payments.
- TMS handles 95%+ of administration for displaced employees allowing HR to focus on other value-added initiatives.
- A resource-rich custom portal provides for a smooth transition for employees.
- Strong employee advocacy by TMS results in almost no future contact needed with HR by displaced employees.
Facts
- This severance cost savings strategy is used by many Fortune 500 companies, but still widely underutilized and misunderstood.
- Many companies have not reviewed their severance benefit program in a number of years.
- Flexibility in plan design can provide for either reduced, same, or increased employee severance benefits, with all resulting in employer savings.