THE OFFICIAL NEWSLETTER FOR MEMBERS OF CONTENT AND CONNECTIVITY HUMAN RESOURCES
Summer 2026
Spotlight on Industry Severance Practices
New research from C2HR reveals that industry employers have well-established severance policies in place, with the majority of companies varying the weeks of severance by organizational level. The Croner Company collected the data for C2HR in two interim surveys that it provides complimentary to participants in C2HR’s Annual Compensation Surveys.
Among the 18 content developers who submitted data, 83% provide severance packages to all levels of “regular” employees. However, most content respondents exclude temporary employees, a majority exclude project employees and approximately half exclude union employees.
Connectivity providers reported similar results. Six of the seven survey participants have a developed severance policy, with one offering severance on a case-by-case basis. A majority of participants (67%) extend severance eligibility to all levels of regular employees. Half of participants exclude temporary employees, while fewer than half exclude union and project employees.
“Understanding industry severance practices is critical in a shifting labor market,” notes Parthavi Das, Executive Director of C2HR. “It helps employers stay competitive and fair, while giving employees confidence that transitions will be handled with transparency and consistency.”
Severance Formulas Vary by Level
The bulk of content developers (12) reporting data offer different severance formulas based on an employee’s level at the company. For example, the average severance reported for a CEO is 46 weeks, while an individual contributor or support employees receives an average of 5.1 weeks. In addition, severance levels also increase with tenure, with average severance pay at 1 year of service ranging from roughly 5 to 51 weeks and average cap ranging from approximately 40 to 56 weeks.
Five of the six connectivity providers with a severance policy also vary formulas by organizational level. However, most did not report how many weeks of pay were offered. Like their counterparts in the content space, they too varied severance based on tenure. On average, severance levels increase with tenure, with average severance pay at one year of service ranging from roughly three to seven weeks and average cap ranging from 27 to 30 weeks for levels up to senior director at connectivity companies.
“The theory behind severance that grows with organization level is that it will take an executive longer to find their next job than an individual contributor. Therefore, an executive will receive up to a year of cash severance to support the time that executive will be searching for a new role in the market,” explained Hali Croner, President and CEO of The Croner Company.
“As we watch the impact of AI on more junior roles in the content and connectivity labor market, we will be curious if there is any movement to change what is offered to mid or lower levels of the organizations in the future,” she added.
Compensation Elements Included in Severance
Three-quarters of content respondents (75%) include short-term incentives (pro-rated or full) in severance packages, while long-term incentive acceleration (31%) and health benefit cash stipends (17%) are less prevalent. Among participants that include short-term incentive in severance pay, approximately half (55%) determine the amount based on target bonus. Less prevalent methods include determining the amount based on actual performance at the end of the period (36%) and by the most recent bonus paid (9%).
Among content developers that include short-term incentives in severance pay, all provide this element to all organization levels. Most include long-term incentives at all levels, with the prevalence of health benefit stipends declining below vice president level.
A majority (50%) of connectivity participants include short-term incentives (pro-rated or full) in severance packages, while 17% include a health benefit cash stipend (outside of COBRA). Of the three participants that include short-term incentives in severance pay, two determine the amount based on actual performance at the end of the performance period, and one determines the amount by the most recent bonus paid.
All three connectivity respondents include short-term incentives in severance pay for vice president level and above, while two of three provide this element below the vice president level. The one participant that includes health benefit stipends extends this element to all organization levels.
Benefits of ERISA-Compliant Plans
In light of the current economic and competitive realities, The Croner Company suggests that employers consider offering Employee Retirement Income Security Act (ERISA)-compliant plans. “While such plans require additional documentation and reporting, they provide a clearer program and slightly more protections for both employee and employer,” noted Croner.
ERISA benefits include: clearly defined severance benefits, eligibility and payment terms; a defined claims and appeal process that must be followed; limits to state law claims for damages and remedies to benefits provided in the plan; and federal court oversight, which may reduce variation in rulings for or against employers.
So how do content and connectivity severance practices compare with other industries that The Croner Company surveys?
“We found that the prevalence of practices and the amounts of time offered are consistent across industries,” reported Croner. “While a portion provide one program to all employees and a larger portion will vary severance with years of service, the amount of weeks offered by methodology are generally similar.”
The Croner Company collected the data for C2HR in two interim surveys that it provides complimentary to participants in the association’s Annual Compensation Surveys. For additional information or to participate in C2HR’s Compensation Surveys, please contact Laurie Krashanoff, via this form, or call her at 415.485.5521.
Thank You, 2026 Sponsors!
If your company would like to further C2HR’s efforts in 2026, please contact
Parthavi Das at parthavi@frontlineco.com or visit C2hr.org/events/event-sponsorships.
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