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charlie0 7 months ago

Honest question, if someone is performing horribly, why do they deserve a severance package? Isn't that was unemployment insurance is for?

marcus0x62 7 months ago | parent | next [-]

1. They might be a good worker, but a bad fit for their role. That’s as much on the hiring manager as the employee.

2. People, even lousy workers, talk. Treating people with respect on their way out may decrease the person’s negativity/bitterness. Consider it a marketing expense.

3. Severance packages come with legal releases attached, at least in the US. Less risk of lawsuits, frivolous or otherwise.

ipaddr 7 months ago | parent | prev | next [-]

The longer the years of service the longer the successful track record. If you work 25 years somewhere for those years your employer was happy with you. A new manager / business downturn / new system / new disability / personal prompting a poor performance means the employer must support the employee and that can become severance.

The length of employment is the most important part of the equation.

triceratops 7 months ago | parent | prev [-]

To compensate the employee for the mistake the company made in hiring them.