2027 U.S. Severance and Separation Benchmarks Report

U.S. Severance and Separation Benefits Benchmark Study

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How does your severance policy compare?

We surveyed 600 US HR and business leaders about severance. Pick your industry and a job level to see who receives severance, how organizations calculate it and where they set minimums and maximums. Then compare your results against a peer group.

Industry Job level Benchmark against

Your snapshot

66% of organizations across all industries make managers eligible for severance. Flat-formula policies pay an average of 5.1 weeks. Policies with limits range from 4.8 to 19.0 weeks.

Eligible for severance (managers)

66%

In line with the benchmark (66%)

Average weeks, flat formula (managers)

5.1wks

In line with the benchmark (5.1 wks)

Average minimum weeks (managers)

4.8wks

In line with the benchmark (4.8 wks)

Average maximum weeks (managers)

19.0wks

In line with the benchmark (19.0 wks)

Eligibility by job level

Share of organizations that make each employee group eligible for severance

All industriesAll US respondents

CEO

70%

Senior management

70%

Directors

71%

Managers

66%

Supervisors

67%

Professional/technical

67%

Exempt

54%

Non-exempt

51%

Policy basics

How many organizations pay severance and put it in writing

Pays severance

92% All industries

92% All US respondents

Has a formal policy for managers

65% All industries

65% All US respondents

When organizations pay it

Circumstances that trigger severance (respondents could pick more than one)

All industriesAll US respondents

Termination for cause

37%

Reduction in force or restructuring

37%

Voluntary termination

36%

Involuntary termination

35%

Change of control (single trigger)

31%

Change of control (double trigger)

31%

Retirement

30%


Professional and business services	28	89%*	82%*	n/a	39%*	17.9 wks*	n/a
Hospitals and healthcare services	50	92%	80%	3.7 wks*	40%	3.5 wks*	18.9 wks*
IT services and technology	50	90%	80%	n/a	30%	2.9 wks*	8.5 wks*
Computers and software	50	96%	74%	4.7 wks*	34%	4.1 wks*	11.0 wks*
Medical products and pharmaceuticals	50	94%	74%	n/a	58%	4.3 wks*	10.5 wks*
Retail, wholesale and distribution	49	94%	74%	n/a	53%	5.9 wks*	22.1 wks*
Energy, mining and natural resources	50	86%	60%	n/a	30%	3.8 wks*	n/a
Banking and financial services	50	96%	56%	10.3 wks*	66%	7.8 wks	15.5 wks*
Telecommunications	71	83%	52%	2.4 wks*	54%	2.6 wks	3.3 wks
Aerospace and defense	124	94%	51%	2.5 wks*	77%	3.6 wks	6.4 wks*
All US respondents	600	92%	66%	5.1 wks	52%	4.8 wks	19.0 wks

* Fewer than 30 responses, so read with caution. We hide results with fewer than 10 responses.

Source: LHH 2026 Severance and Separation Benchmark. Censuswide surveyed 600 US HR and business leaders between September 9 and 22, 2026. The sample splits evenly between organizations with 500 to 4,999 employees and those with 5,000 or more, and between HR and business leaders. All respondents work at organizations that offer severance or outplacement services.

Each filter shows a separate slice of the survey. Industry results and benchmark results do not combine into one group.

U.S. Severance and Separation Benefits Benchmark Study

How does your severance policy compare?

Eligibility by job level

Policy basics

When organizations pay it

Formula used

Weeks of severance: flat formula

Weeks of severance: level and tenure formula

Graduated scale

How organizations pay it

Do policies set limits?

Conditions attached

Minimum to maximum weeks by job level

Industry comparison: managers