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2018

SEVERANCE PAY POLICIES INDUSTRY SCORECARDSAMPLE

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42 PREVALENCE RESULTS44 Banking/Financial Services/Insurance

56 Consumer Goods

68 Energy

80 Healthcare

90 High Tech

102 Life Sciences

112 Manufacturing

124 Other Nonmanufacturing

136 Retail & Wholesale

148 Services (Nonfinancial)

160 ABOUT THIS REPORT161 Methodology

163 Glossary

168 ABOUT MERCER

4 MERCER'S GLOBAL PUBLICATIONS

5 INTRODUCTION 6 Report Structure

7 Reading this Report

14 INDUSTRY SCORECARD16 What's My Company Score?

17 Severance Pay Policy

19 Notice Period

20 Severance Payments

21 Payment Formula

22 My Total Points

23 SCORECARD QUADRANTS

24 Overall Industry Rankings

26 Scorecard Quadrants Overview

27 Severance Pay Policy

35 Notice Period

39 Severance Payments

40 Payment Formula

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GET EVERY THING IN ONE PLACESubscribe to the Talent All Access® Portal for exclusive access to online tools and all of our publications, or schedule a demo with a Mercer representative to discuss a Mercer Select IntelligenceSM membership.

Stay ahead of today’s tight deadlines and competitive race for labor with these resources from the Mercer Insights Product Group. Covering local benefits, global compensation practices, and emerging HR policy trends, this portfolio contains all of the actionable data, insights, and guidance you need to steer your organization to success. Select a title to learn more about each of our industry-leading reports, or visit imercer.com/global for more information.

HEALTH & BENEFITS

WORKFORCE & CAREERS

HANDBOOKS & GUIDES

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around The World

Global Compensation Planning Report

Global Compensation Planning Report

20 Year Look Back

Short-Term Incentives Around the World

HR Guide to Doing Business

HR Atlas Asia Pacific HR Atlas Global

HR Atlas Latin America

Worldwide Benefit & Employment Guidelines

Global Pay Summary International Geographic Salary Differentials

New Graduate Starting Salaries

Workforce Turnover Around the World

Compensation Handbook

Global Mobility Handbook

HR Management Terms

Severance Pay Policies Industry Scorecard

Vacation and Other Leave Around the World

Vacation and Other Leave Industry Scorecard

Car Benefit Policies — Global Industry Findings

Severance Pay Policies Around the World

GLO

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INTRODUCTIONParting is such sweet sorrow, but it can be a whole lot sweeter when both sides walk away amicably. Although no one looks forward to terminations, layoffs, or other forms of employee departure, most organizations recognize that a severance package can do a lot of good for all parties. For employers, severance pay policies can boost their employment brand, provide some protection against wrongful termination suits, and encourage former employees to return to the organization should the opportunity arise. For employees, the benefits are obvious: severance pay acts as a parachute to help cushion their re-entry to the job market.

Be that as it may, there is more than one way to construct aseverance policy. Human resources (HR) professionals knowthat not all employees are eligible for the same benefits, andseverance pay is no exception. Given the fraught nerves andraw emotion that often surround employee terminations, it isimperative that HR professionals have a well-articulated andfirmly grounded policy to guide them through the severancepay process. Notably, this is important for both the executorand recipient of severance pay: for HR professionals, becauseit allows them to rely on predetermined formulas and policiesduring these difficult discussions, and for employees, because itgrants them peace of mind that they are being treated fairly.

DO YOUR RESEARCH BEFORE CREATING A POLICYSeverance pay policies are similar to other HR programs, inthat many factors contribute to determining the right solution.While HR professionals always should be conscious of theircompetitors’ behavior, it is paramount that your organization isaware of the legal and regulatory statutes surrounding noticeperiods and severance pay in your markets. These rules, whichare often dictated by collective bargaining action and laborcodes, should underpin your organization’s severance policy,and are particularly rigid surrounding aspects of terminationlike notice periods, pay in lieu of notice, and the justification fordismissal. HR and legal teams should keep an astute eye out forupdates or changes in local ordinances, as noncompliance cancost considerably more than providing the proper benefits onthe front end.

SAMPLE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 5

INTRODUCTION

REPORT STRUCTUREThe 2018 Severance Pay Policies Industry Scorecard allows you to assess your own company’s severance pay policy and compare it to the market standard for 10 global industries. Identify the specific components of your policy that lag behind or exceed those offered by your direct competitors, and learn the standard practices of industry leaders around the world.

The report includes the following sections:

INDUSTRY SCORECARDThis section provides the overall rankings and score for each industry. Complete the “What’s my company’s score?” quiz to find out how your company compares to all 10 industries included in this report.

SCORECARD QUADRANTSThis section provides additional detail on the scores and rankings of each industry by evaluating questions in the following quadrants:

► Severance Pay Policy

► Notice Period

► Severance Payments

► Payment Formula

PREVALENCE RESULTSThis section provides the general prevalence data for each industry to allow readers to understand which practices are most common for their industry. Results in this section are grouped by industry:

► Banking/Financial Services/Insurance

► Consumer Goods

► Energy

► Healthcare

► High Tech

► Life Sciences

► Manufacturing

► Other Nonmanufacturing

► Retail & Wholesale

► Services (Nonfinancial)

ABOUT THIS REPORTThis section delineates the methods of data-gathering and cleaning used for the report and lists key definitions.

► Methodology includes data sources used to compile this report, currency conversion rates, and other details on calculations and assumptions.

► Glossary provides definitions for many of the terms used throughout this report, as well as other HR-related terms.SAMPLE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 6

SEVERANCE PAY POLICY

INTRODUCTION

READING THIS REPORTThe following pages provide tips and guidelines to help navigate the report content.

WHAT'S MY COMPANY SCORE?

1. WHICH TYPES OF EMPLOYEES ARE COVERED IN YOUR COMPANY’S SEVERANCE PAY POLICY? CHOOSE ALL OPTIONS THAT APPLY.

NONEXEMPT EMPLOYEES

EXEMPT EMPLOYEESFULL-TIME EMPLOYEES

PART-TIME EMPLOYEES

CONTRACTORS/TEMPORARY EMPLOYEES

4. HOW LONG DOES AN EMPLOYEE HAVE TO WAIT BEFORE RETURNING TO THE COMPANY AFTER RECEIVING A SEVERANCE PAYOUT? CHOOSE ONE OPTION.

NO MINIMUM

A MINIMUM OF 3 MONTHS

A MINIMUM OF 6 MONTHS

2. WHICH IS THE MINIMUM LENGTH OF SERVICE REQUIRED FOR ELIGIBILITY IN YOUR COMPANY’S SEVERANCE PAY POLICY? CHOOSE ONE OPTION.

A MINIMUM OF 6 MONTHS

A MINIMUM OF 12 MONTHSNO MINIMUM

A MINIMUM OF 3 MONTHS A MINIMUM OF 18 MONTHS

YES

NO

3. ARE EMPLOYEES ALLOWED TO RETURN TO THE COMPANY AFTER RECEIVING A SEVERANCE PAYOUT? CHOOSE ONE OPTION.

In this section of the report, you can calculate your company score and see how you compare to your industry and other industries.

Some questions will allow multiple responses, some will allow only one.

Answer each question based on your company's policy.

Your total score for each question will sum automatically. A summary of all scores will then display on page 22, along with a summary of each industry's scores. SAMPLE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 7

RANK INDUSTRY SCORE

1 LIFE SCIENCES 159

2 HIGH TECH 158

3 HEALTHCARE 157

4 BANKING/FINANCIAL SERVICES/INSURANCE 155

5 RETAIL & WHOLESALE 143

6 ENERGY 141

7 OTHER NONMANUFACTURING 132

8 SERVICES (NONFINANCIAL) 132

9 CONSUMER GOODS 129

10 MANUFACTURING 125

RANK INDUSTRY SCORE

1 CONSUMER GOODS 150

2 SERVICES (NONFINANCIAL) 147

3 MANUFACTURING 134

4 ENERGY 132

5 HIGH TECH 129

6 OTHER NONMANUFACTURING 129

7 HEALTHCARE 126

8 BANKING/FINANCIAL SERVICES/INSURANCE 123

9 LIFE SCIENCES 121

10 RETAIL & WHOLESALE 119

SEVERANCE PAY POLICY NOTICE PERIOD

RANK INDUSTRY SCORE

1 LIFE SCIENCES 30

2 OTHER NONMANUFACTURING 21

3 HIGH TECH 20

4 BANKING/FINANCIAL SERVICES/INSURANCE 19

5 RETAIL & WHOLESALE 18

6 CONSUMER GOODS 18

7 MANUFACTURING 18

8 ENERGY 15

9 SERVICES (NONFINANCIAL) 14

10 HEALTHCARE 11

RANK INDUSTRY SCORE

1 LIFE SCIENCES 162

2 CONSUMER GOODS 156

3 HIGH TECH 154

4 BANKING/FINANCIAL SERVICES/INSURANCE 146

5 ENERGY 145

6 HEALTHCARE 134

7 OTHER NONMANUFACTURING 125

8 MANUFACTURING 124

9 RETAIL & WHOLESALE 122

10 SERVICES (NONFINANCIAL) 111

SEVERANCE PAYMENTS PAYMENT FORMULA

INTRODUCTION

SAMPLE DATA

Content relating to Severance Pay Policy is shaded in blue.

All content relating to the Notice Period quadrant is red.

This page indicates the ranking of each industry within each quadrant. These rankings may differ for each quadrant and when compared to the overall rankings.

All content relating to the Severance Payments quadrant is yellow.

See the Glossary in About this Report for a list of sub-industries included in each industry.

All content relating to the Payment Formula quadrant is purple.

SAMPLE

SCORECARD QUADRANTSINTRODUCTION

FACTORS MEASURED

► No minimum

► A minimum of 3 months

► A minimum of 6 months

► A minimum of 12 months

► A minimum of 18 months

The Scorecard Quadrant section shows the individual questions that make up each quadrant.

The "Factors Measured"are similar to the response options in the What's My Company Score? quiz.

© 2018 MERCER LLC. 8

SEVERANCE PAY POLICY

See Methodology in About this Report for details on how these scores are calculated.

WHAT IS THE MINIMUM LENGTH OF SERVICE REQUIRED FOR ELIGIBILITY IN YOUR COMPANY’S SEVERANCE PAY POLICY?

5QUESTION SCORE

BANKING/FINANCIALSERVICES/INSURANCE

4QUESTION SCOREHIGH TECH

5QUESTION SCORERETAIL &

WHOLESALE

5QUESTION SCOREENERGY

5QUESTION SCOREMANUFACTURING

3QUESTION SCORECONSUMER

GOODS

5QUESTION SCORESERVICES

(NONFINANCIAL)

7QUESTION SCOREHEALTHCARE

4QUESTION SCORELIFE

SCIENCES

9QUESTION SCOREOTHER NON

MANUFACTURING

The question score indicates how well the industry performed for this question. The higher the score, the more generous the benefit or policy.

SAMPLE DATA

SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLESAMPLE

N=286

MORE THAN ONCE PER YEAR

ANNUALLY

EVERY OTHER YEAR

UNDER WHICH OF THE FOLLOWING CIRCUMSTANCES ARE SEVERANCE PAYMENTS PROVIDED?

EARLY TERMINATION OF TEMPORARY EMPLOYEE CONTRACT

2%

19%

6%

74%

27% 96% 32%

AD HOC

N=282

INVOLUNTARY TERMINATION WITH CAUSE

INVOLUNTARY TERMINATION WITHOUT CAUSE

VOLUNTARY TERMINATION (INCENTIVIZED LAYOFFS)

RETIREMENT EARLY RETIREMENT7% 8% 11%

PREVALENCE RESULTS

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 9

SAMPLE DATA

INTRODUCTION

HOW OFTEN DO COMPANIES REVIEW THEIR SEVERANCE PAY POLICY?

WHAT TYPE OF SEVERANCE PAY POLICY DO COMPANIES HAVE?

N=286

GLOBAL REGIONAL

LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

SEVERANCE PAY POLICY

23%

37% 15%

Note: More than one response was permitted; percentages may sum more than 100%.

25%

INDUSTRY

Some questions allowed more than one response. This is noted below the applicable questions.

The N= indicates the number of companies that responded to the question.

Percentages indicate the proportion of companies that indicated each type of response; this is also known as prevalence.

Retirement and early retirement can sometimes be offered or forced when an organization needs to cut back on staff.

An involuntary termination without cause also includes redundancies and layoffs.SAMPLE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 10

ALL EMPLOYEES EXECUTIVE MANAGEMENT PROFESSIONAL PARA–PROFESSIONAL

1 WEEK 27% 20% 21% 22% 24%

2 WEEKS 35% 27% 31% 34% 36%

3 WEEKS 2% 4% 4% 4% 3%

4 WEEKS 18% 17% 17% 18% 17%

5 WEEKS 2% 2% 1% 2% 2%

6 WEEKS 4% 3% 5% 4% 4%

7 WEEKS 0% 0% 0% 0% 0%

8 WEEKS 7% 7% 7% 8% 7%

9 WEEKS 1% 1% 0% 0% 0%

10 WEEKS 0% 0% 0% 0% 0%

11 WEEKS 0% 0% 0% 0% 0%

12 WEEKS 2% 6% 6% 4% 4%

MORE THAN 12 WEEKS 2% 13% 8% 4% 3%

N= 164 256 253 251 244

WHAT IS THE TIME PERIOD ON WHICH COMPANIES BASE THEIR SEVERANCE NOTICE PERIOD?

NOTICE PERIOD

INTRODUCTION

89% 3% 8%

INDUSTRY

Survey respondents were provided the option of selecting the type of time measure – days, weeks, months – applicable to their policy. All responses were then converted into weeks. See the About This Report section to convert weeks into days or months.

Survey respondents were able to provide details for "all employee levels" or for specific groups (such as executives) if their policy varies based on career level.

NUMBER OF MONTHS

NUMBER OF DAYS

NUMBER OF WEEKSN=19

WHAT IS THE LENGTH OF THE SEVERANCE NOTICE PERIOD COMPANIES PROVIDE TO AFFECTED EMPLOYEES?NOTICE PERIOD LENGTH — NUMBER OF WEEKSSAMPLE DATA

SAMPLE

NUMBER OF WEEKS' PAY PER YEAR OF SERVICE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 11

HOW MANY WEEKS OF SEVERANCE PAY IS PROVIDED PER YEAR OF SERVICE?

ALL EMPLOYEES EXECUTIVE MANAGEMENT PROFESSIONAL PARA–PROFESSIONAL

1 WEEK 44% 8% 21% 34% 49%

2 WEEKS 47% 28% 47% 46% 36%

3 WEEKS 4% 17% 11% 5% 3%

4 WEEKS 3% 13% 10% 7% 3%

5 WEEKS 0% 0% 0% 1% 1%

6 WEEKS 1% 3% 1% 1% 1%

7 WEEKS 0% 0% 0% 0% 0%

8 WEEKS 0% 4% 4% 1% 2%

9 WEEKS 0% 1% 0% 1% 0%

10 WEEKS 0% 0% 0% 0% 0%

11 WEEKS 1% 0% 0% 0% 0%

12 WEEKS 0% 3% 2% 4% 4%

MORE THAN 12 WEEKS 0% 22% 4% 1% 1%

N= 102 92 100 101 98

FORMULA BASED ON YEARS OF SERVICE

INTRODUCTION

INDUSTRY

The bottom row of the table indicates the sample size (or number of companies responding) for each column of data.

Information on severance payout formulas is provided based on a number of weeks of pay per year of service, or based on a combination of age and year of service. See the About this Report section to convert weeks into daysor months.

SAMPLE DATA

SAMPLE

© 2018 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE 12

HOW MANY WEEKS OF PAY ARE PROVIDED FOR THE EMPLOYEE AGES AND YEARS OF SERVICE LISTED BELOW?

FORMULA BASED ON YEARS OF SERVICE AND AGE OF EMPLOYEE

INTRODUCTION

NUMBER OF WEEKS' PAY BASED ON YEAR OF SERVICE AND AGE

0–5 YEARS OF SERVICE 5–10 YEARS OF SERVICE

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

EMPLOYEE AGED 25

EMPLOYEE AGED 30

EMPLOYEE AGED 40

EMPLOYEE AGED 50

EMPLOYEE AGED 60

1 WEEK 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

2 WEEKS 30% 30% 20% 10% 10% 33% 20% 20% 20% 10%

3 WEEKS 0% 0% 10% 10% 10% 0% 0% 0% 0% 0%

4 WEEKS 0% 0% 0% 0% 0% 0% 0% 0% 0% 10%

5 WEEKS 20% 20% 10% 10% 10% 0% 0% 0% 0% 0%

6 WEEKS 10% 10% 0% 10% 0% 0% 0% 0% 0% 0%

7 WEEKS 0% 0% 10% 0% 0% 0% 0% 0% 0% 0%

8 WEEKS 0% 0% 10% 0% 0% 0% 10% 10% 0% 0%

9 WEEKS 0% 0% 0% 20% 10% 0% 0% 0% 0% 0%

10 WEEKS 20% 20% 20% 0% 10% 22% 20% 10% 20% 10%

11 WEEKS 0% 0% 0% 0% 10% 0% 0% 0% 0% 0%

12 WEEKS 10% 10% 10% 20% 10% 11% 10% 20% 0% 0%

MORE THAN 12 WEEKS 10% 10% 10% 20% 30% 33% 40% 40% 60% 70%

N= 10 10 10 10 10 9 10 10 10 10

INDUSTRY

For some industries, one type of policy is more common than the other so sample sizes may vary.

SAMPLE DATAInformation on severance payout formulas is provided based on a number of weeks of pay per year of service, or based on a combination of age and year of service. See the About this Report section to convert weeks into days or months.

SAMPLE

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© 2017 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE

ABOUT THIS REPORTThis section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on exceptions and exclusions in the data and a list of data sources, relevant equations, and currency conversions rates. Readers will also find a glossary of key terms.

METHODOLOGYData for this publication were sourced from Mercer’s 2017 Severance Pay Policies survey, conducted in September and October 2017. The survey collected information on severance pay policies companies offered as well as other specific aspects and terms of their program.

The scorecard analysis within this report is intended to provide an alternate viewpoint to the data and a method for comparing each industry to each other. Each industry’s set of global prevalence data was used as the foundation of the scorecard. The following steps were applied:

► A selection of 15 questions from the Severance Pay Policies survey was identified based on their global applicability and their relevance and importance when creating a policy intended to truly benefit employees.

► These questions were categorized into four policy areas, or quadrants: Severance Pay Policy, Notice Period, Severance Payments, Payment Formula.

► A scoring system was applied to each question response option according to the value and importance of that component to an employee (or prospective employee). For example, in the question below, “no” has a value of zero as this does not add to the employee value proposition. Whereas, “yes” has a level of importance to the employee and has a score of 10 points.

DOES YOUR COMPANY PROVIDE SEVERANCE PAY TO EMPLOYEES?

POINTS

YES 10

NO 0

QUESTION SCORE MAX = 10

1313© 2018 MERCER LLC. SAMPLE

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© 2017 MERCER LLC. SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE

► These scores were used, along with the prevalence data of each question and answer, to calculate a question score for each industry. This means that the “no” response in the example below results in 0 points for that answer. If a high percentage of companies in a given industry indicated “no,” they would receive a low overall score for this question. For example:

PREVALENCE SCORE POINTS

YES 35% 10 3.5

NO 65% 0 0

QUESTION SCORE 3.5

MAXIMUM POSSIBLE SCORE 10

► Question scores within each quadrant were summed together to identify the policy areas in which industries outperformed and under-performed.

► Industry quadrant scores were summed together to identify how industries stacked up overall.

The maximum points available for each quadrant and overall are:

QUADRANT SCORE

SEVERANCE PAY POLICY 260

NOTICE PERIOD 220

SEVERANCE PAYMENTS 60

PAYMENT FORMULA 220

TOTAL SCORE 760

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© 2018 MERCER LLC. SAMPLE

ABOUT THIS REPORT

GLO

SSAR

Y

COMPULSARY SEVERANCETakes place when it is solely the company’s decision which employees it wishes to layoff or make redundant.

NONCOMPETERestricts employee to enter into or start a similar profession or trade in competition against the employer.

NONSOLICITATIONRestricts employees from soliciting customers or business opportunities from the employer for a certain period of time.

NONDISCLOSUREDefines the period of time during which the parties must keep information confidential.

NONPOACHINGRestricts from soliciting employees.

NONDISPARAGEMENTRestricts employees from taking any action that negatively impacts a company, its reputation, products, services, management, or employees.

NOTICE PERIODThe time period between the receipt of the letter of dismissal and the end of employment.

OUTPLACEMENTA service provided by the employer to help former employees transition to new jobs and re-orient themselves in the job market.

SEVERANCE AGREEMENT (ALSO CALLED REDUNDANCY AGREEMENT)A contract between an employer and employee documenting the rights and responsibilities of both parties in the event of redundancy.

SEVERANCE PAY (ALSO CALLED REDUNDANCY PAY)The compensation that an employer provides to an employee, in addition to the employee’s remaining regular pay, when he or she leaves employment at a company.

VOLUNTARY SEVERANCETakes place when a financial incentive is offered by the company to encourage employees to voluntarily resign, typically in the event of downsizing or restructuring.

SEVERANCE TERMS

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ABOUT THIS REPORT

SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE© 2018 MERCER LLC. SAMPLE

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GLO

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EXECUTIVE These senior-most employees in the organization generally include top executives and directors within the organization, or employees with managerial responsibilities at the top level of a business unit or organization. Executives focus on providing strategic vision and/or tactical/strategic direction across multiple functions or sub-functions. May also be referred to as Senior Executive or Function Head, or in the case of a sales executive Head of Sales/Marketing.

MANAGEMENT

These employees with important supervisory and managerial responsibilities are usually the higher levels within a business unit or organization. Management-level employees focus on managing people and implementing policies and strategies to meet the organization’s objectives. They typically report to senior managers and (other than sales) functional managers including finance, human resources, information technology.

EMPLOYEE CAREER LEVELSPROFESSIONAL Typically refers to jobs requiring a professional or technical qualification. They are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less-experienced staff. They typically hold a university degree or full-trade equivalent.

PARA-PROFESSIONAL Typically includes roles that are semi-skilled or unskilled with nosupervisory or management responsibility. They do not requirea university degree, but may require formal professional trainingand certification, and may be paid on an hourly or a salariedbasis.

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SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE© 2018 MERCER LLC. SAMPLE

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ENERGY ► Energy Fully Integrated and Exploration & Production ► Energy Services & Drilling ► Energy Pipeline/Midstream ► Energy Downstream ► Energy Trading ► Energy Utilities ► Alternative & Renewable Energy ► Energy Engineering, Procurement & Construction ► Other Energy ► Base Metals Mining ► Coal, Industrial & Other Materials Mining ► Gold Mining ► Precious Metals & Minerals Mining (excluding Gold) ► Diversified Mining

HEALTHCARE ► Healthcare

BANKING/FINANCIAL SERVICES/INSURANCE

► Consumer Finance & Retail Banking ► Commercial Lending ► Universal (Diversified) Banking ► Financial Services Operations ► Combination Banking/Financial Services Organizations ► Other Financial Services ► Investment ► Trust & Private Banking ► Life Insurance ► NonLife Insurance (excluding Health & Medical) ► Health & Medical Insurance ► Combination Life & NonLife Insurers ► Reinsurance

CONSUMER GOODS ► Apparel ► Beverage & Tobacco ► Food ► Personal Care & Household Products ► Over the Counter Pharmaceutical ► Combination Consumer Goods ► Other Consumer Goods

INDUSTRY SUPER SECTORSIndustry data are provided by Industry Super Sector. The following list indicates the industries included within each super sector.

GLO

SSAR

Y

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ABOUT THIS REPORT

SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE© 2018 MERCER LLC. SAMPLE

ABOUT THIS REPORT

HIGH TECH ► High Tech (Manufactured Products & Hardware) ► High Tech (Software & Virtual Products) ► High Tech (Services) ► Combination High Tech Manufactured/Hardware & Software/Virtual Products

► Combination High Tech Manufactured/Hardware Products & Services

► Combination High Tech Software/Virtual Products & Services ► Combination All High Tech Products & Services ► Other High Tech Products or Services

LIFE SCIENCES ► Pharmaceutical ► Medical Devices & Equipment ► Biotechnology ► Contract Organizations (Life Sciences) ► Animal Health ► Combination Life Sciences

MANUFACTURING ► Automobile Components Manufacturing ► Automobile Manufacturing ► Chemicals Manufacturing ► Construction, Farm Machinery & Heavy Trucks Manufacturing ► Electrical Equipment Manufacturing ► Machinery Manufacturing ► Other Durable Goods Manufacturing ► Other Nondurable Goods Manufacturing ► Other Transportation Equipment Manufacturing ► Paper & Allied Products Manufacturing ► Plastics & Rubber Products Manufacturing

OTHER NONMANUFACTURING ► Agriculture, Forestry, Fishing & Hunting ► Construction ► Entertainment ► Hospitality ► Publishing ► Real Estate ► Research & Development ► Water, Water Utility, Sewage & Other Systems ► Combination, or Other Nonmanufacturing

RETAIL & WHOLESALE ► Apparel, Fashion, Footwear, & Accessories Retail ► Department Stores ► Electronics, Entertainment, Communications, & Office Retail ► Grocery, Pharmacy, & General Merchandise Retail ► Convenience Retail ► Home, Hardware, Building & Garden Supply Retail ► Restaurants Specialty ► Retail Wholesale ► Distribution

SERVICES (NONFINANCIAL) ► Business Process Outsourcing ► Business/Professional Services ► Education ► Information & Data Processing Services ► Government/Public Administration & Other Civic, Social Political or Religious Organizations

► Services — Other or Combination

GLO

SSAR

Y

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SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE© 2018 MERCER LLC. SAMPLE

SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLE© 2018 MERCER LLC.

Mercer Select IntelligenceSM is a global membership platform, offering HR and business professionals digital and in-person access to cutting-edge research, analysis, productivity tools, best practices, on-demand expertise, and peer networks. When it’s time to shape policy and make critical people-strategy decisions, Mercer Select Intelligence will keep you ahead of the curve with actionable insights into the latest HR news and key issues, including legislative and regulatory initiatives, local and global economic indicators, and emerging trends. As your trusted resource in a rapidly changing business environment, the Mercer Select Intelligence membership will continually evolve to deliver the human capital insights that you need to succeed. Visit select.mercer.com to learn more.

19SAMPLE

20© 2018 MERCER LLC.

ABOUT MERCER At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We’re in the business of creating more secure and rewarding futures for our clients and their employees — whether we’re designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today.

Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges.

SEVERANCE PAY POLICIES INDUSTRY SCORECARD — SAMPLESAMPLE

Copyright 2018 Mercer LLC. All rights reserved.

For further information, please contact your local Mercer office or visit our website at www.imercer.com

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