Manufacturing Industry Hiring Practices
Based on a survey done where over 450 HR professionals across more than 18 industries in the United States participated in this severance study, 89% of the officers and senior executives from the manufacturing industry are eligible for severance resulting from involuntary separation. Therefore, 40% of the participating manufacturing companies said that all the employees were eligible for severance packages.
EMPLOYEE BENEFITS FOR MANUFACTURING
- Some benefits provided by manufacturing companies to their employees are health benefits, retirement, savings, flexibility, family-friendly benefits, and wellness.
- 88% of employers in manufacturing now offer an HDHP, up from 54 percent in 2016.
- Voluntary benefits have become prevalent among manufacturers, with nearly 60 percent of employers offering at least one for 2018, up from 34 percent in 2016.
MANUFACTURING INDUSTRY EXECUTIVES
- Manufacturing CEO and CFO continue to experience an increase in the amount of compensation paid as long-term incentives (2 percent and 3 percent, respectively) compared to salary and bonus/annual incentives.
- The majority (56%) of manufacturing CEO continue to have CIC severance multiples equal to 3 times base salary and annual incentives (but down slightly from 59% last year).
- Based on a survey done where over 450 HR professionals across more than 18 industries in the United States participated in this severance study, 89% of the officers and senior executives from the manufacturing industry are eligible for severance resulting from involuntary separation.
- 40% of the participating manufacturing companies said that all the employees were eligible for severance packages.
We began our research by trying to find precompiled data on the benefits packages for executives hired at small-to-medium sized manufacturing companies, and severance package clauses common practice for these hires. In pursuit of this research strategy, we scoured governmental websites and databases. We checked BLS, US Department of Labor, United States Labor Force Statistics, and USCIS among others. This strategy did not lead us to any helpful information about the requested data. However, it provided some useful insights into Chief Executives Occupational Employment and Wages but nothing on their benefits or severance package details.
As a second research approach, we tried to find the requested information by looking for resources which directly and credibly provided the benefits packages for executives hired at small-to-medium sized manufacturing companies, and severance package clauses common practice for these hires. In attempting to locate this answer, we conducted exhaustive research through industry related websites, market reports, and trusted media articles. In pursuit of this strategy, we checked Winston Benefits, Benefit Focus, and Pay Governance.
We found many reports about the manufacturing CEO's CIC severance, and some general benefits provided to employees in the manufacturing industry in the United States. However, it was not mentioned that these are specifically tailored for small-to-medium sized manufacturing companies and there was no alternate data which could have been used to prove that these benefits are exactly or very close to what is provided by small-to-medium sized manufacturing companies in the United States.
Also, we found a report from I Mercer which is relevant to the requested data. However, we came across some hurdles. This market research report was obstructed by paywalls which made it impossible to determine the requested information.
In addition, we found another report which mentioned some information on severance related to top executives in the manufacturing industry, but the study was conducted on companies with 500 employees or more.
Our next attempt was to triangulate the info. For the general benefit and for the severance package clause, we looked for a list where small-to-medium sized manufacturing companies in the United States were listed. We found a list where we were able to extract the companies that are into some sort of manufacturing. The idea here was to visit the website of each and every company found and then check the careers section to find out if the companies have mentioned anything about the general benefits provided to the newly hired executives. Along with the careers section, other sections like press releases, employee testimonials, and white papers were checked. Our aim was to find out the general benefits provided by at least 5 companies and then present them as an overview of benefits packages offered by small-to-medium-sized manufacturing companies to new executive hires. However, none of these companies had anything mentioned related to the benefits provided to the employees or top executives. Instead, they had general info on the current openings in different departments. The companies checked were Longmont, Colorado, HED Cycling, Motawi Tileworks, Fusion OEM and P1 Industries since they were very close to 50–65 employees and $5 — $10 million in revenues.
A similar strategy was attempted for the severance package clauses in the contract for newly hired executives. We checked for the companies mentioned above and then checked for their top executives (CEO, CFO, etc). The idea here was to look for the history of how those executives were hired and if there was some info on the severance package clauses. Internet archive was searched for the last 5 years and no info was found on any of the individuals except some company or third party articles mentioning their names in a different context. Also, data specific to small-to-medium sized manufacturing companies was not found.
Other sources like SHRM, Lee Hecht Harrison, and My Employment Lawyer were looked into where it was found that severance pay is only offered to at-will employees and to those who are fired by the company. It was also found that 88 percent of companies pay severance when termination is due to a reduction in force or corporate restructuring, only 13 percent do so when the termination is for cause and only 6 percent provide severance on retirement. However, this was not specific to manufacturing companies and no measurable metric or alternate data was found that could have been used to triangulate the info. Also, data specific to small-to-medium sized manufacturing companies was not found.
Our last strategy was to expand the research to global manufacturing industry where we were looking for any data that could cite a standard followed by the majority of the nations when it comes to general benefits and severance package clauses in the manufacturing industry for the new executive hires. Looking into sources like Corporate Financial, Balance Careers, Business Standard, Investopedia, Live Mint, and Economic Times we were not able to find any relevant info that could be directly or indirectly be used to answer the request based on a logical assumption. Hence, this strategy did not yield any results.