2023 layoff benefits decline
Median severance is down by two weeks
Tech layoffs are worsening in 2023, and so are benefits for impacted workers.
Median minimum severance has dropped by two weeks, from 14.5 weeks in 2022 to 12.5 weeks in 2023.
At the same time, Salesforce, Spotify, and Hubspot all offered 20 weeks severance pay, a record high. But the trend is to offer less.
Similarly, median healthcare coverage has dropped by one month, from 6 months in 2022 to 5 months in 2023.
However, some benefits are appearing more often this year:
80% are offering accelerated equity vesting, up from 63% (could be cyclical)
67% are offering dedicated immigration support, up from 56%
47% are offering bonus payouts, up from 13% (but this is likely cyclical since most tech fiscal years end in December or January)
One other thing — laptops
Most companies are skittish about allowing employees to keep laptops due to security concerns. But we’ve already seen five companies offer this benefit in 2023.
Would you rather have those 2 weeks severance, worth $4,615 on a base salary of $120,000, or a $2,000 laptop?
The answer for many might be the laptop.
And it plays well:
It’s a nice perk that may carry more perceived value than it’s really worth.
Maybe time to dust off those conjoint analyses.
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