Determine what to include in a severance package by establishing your budget and reviewing the paid benefits that the employee receives. Often a severance package will include full pay, paid insurance premiums, continued contribution to retirement, and outplacement services for the length of the severance agreement.
Create a policy that outlines the length of the package. For instance, employees receive X number of weeks for every X number of years employed.
The extent of the package offered often depends on the available budget, the position the employee holds, and the length of tenure.
As with anything that intersects with employees and employer relations, it is always wise to consult a labor law expert to help advise, create a severance agreement, and implement a severance package that is fair and within the mandates of state law.