Can’t offer severance pay? Try these 3 things

Granted, a generous severance package is probably the best way to give departing staffers some peace of mind when layoffs take place. But when that isn’t an option, there are other things you can do.

From low-cost to no-cost

Here are some alternatives to severance pay, courtesy of Val Matta, VP of Business Development at CareerShift:

1. Outplacement services. Granted, this service, which is generally contracted by the employer does require some type of up-front investment. However, it generally doesn’t cost as much as a generous severance package and can go a long way toward getting former employees back on their feet.

Outplacement services can vary from basic job search management to alumni assistance — where displaced workers are paired up with other former employees who’ve moved into other jobs.

2. Health-benefit extensions. One of the most stressful things about losing a job is losing health benefits or having to pay expensive COBRA premiums. If you can extend the health insurance your company provides for a few additional months, it can give workers some much-needed security while they find new employment or find the right coverage through the Obamacare exchanges.

3. References or referrals. These are invaluable assets for former workers — plus they don’t cost your company a thing. One option is simply offering a reference to aid displaced workers in their job search. However, you can take it a step further, as well.

How? Look through your industry contacts to see if there’s anybody around that’s looking to hire.

This post originally appeared on our sister website, HRBenefitsAlert.com.