4 ms·

Why do they provide it then? Out of goodwill?

• lotsofpulp 4y ago
  Sometimes, or that could be a partial reason as a signal to current and future employees about what management is like. But NDA is another reason, or even keeping unemployment insurance premiums low by having everyone that accepts severance state that they are voluntarily leaving the company in exchange for the severance. By voluntarily separating, they cannot collect unemployment benefits from the state, which means the state charged the employer less in unemployment insurance premiums.
• mbreese 4y ago
  Yes. It makes it easier for them to hire down the road. If you know there is a parachute waiting for you, it’s easier to take a risk on joining the company once it starts growing again. But I suspect it’s mainly as a carrot to sign the NDA/non-compete/whatever else they want you to sign to keep not talk about what happened.
• encryptluks2 4y ago
  Usually it is advantageous to offer it so that you don't sue them down the road and get more money. A lot of times it is less rewarding to take the first second or third settlement offer than to counter for quadruple what they offer.
• ddingus 4y ago
  Yes, good will sometimes. Other times it may be all about giving someone a very strong incentive to play nice while they find a new gig. Sometimes people basically need it. These kinds of things are not always about the strict minimum cost actions. In general, it is a better world with some degree of human consideration being part of things. I am quite sure many of the cases I had involvement in could have been done cheaper. However, I am also quite sure the people involved had what they need to get through to their next gig with few worries too. That is worth a lot and these days one can never know who may be working for or with who.