Severance agreements are intended to provide a safety net for employees transitioning out of a company and to protect the interests of both employers and employees. However, in practice, these agreements often fall short of their intended purpose. Former employees may fail to uphold their obligations, and severance payments may not effectively incentivize compliance. The result? A lack of accountability and potential financial loss for employers.
Traditional severance agreements lack the structured delivery and enforcement mechanisms necessary to ensure compliance.
Employees may receive their severance payments without any clear accountability measures in place. This leaves employers vulnerable to the risk of non-compliance and financial repercussions.
What if you could use a technology platform to streamline severance management and enforcement? Keep provides employers with a customizable, fully automated tool to deliver, track, manage, and enforce severance obligations with ease.
With Keep, employers can create customized severance agreements tailored to their specific needs and requirements, send them to the exiting/former employee for signature, file them in their portal, and then track both the payment paid and the obligations agreed to. These agreements can include clear terms and conditions outlining the obligations of both parties involved. Employees receive their severance payments through the Keep platform, ensuring transparency and accountability from the outset.
The platform offers robust tracking and management features, allowing employers to monitor compliance in real time. Automated reminders and notifications help ensure that employees fulfill their obligations in a timely manner, reducing the risk of oversight or neglect.
Perhaps most importantly, Keep makes the obligation more impactful through the delivery of the Keep Bonus as a credit obligation up front that effectively goes away once obligations are met. This credit obligation further ensures that employees recognize the importance of their promises and the potential repercussions should they breach them.
Further, Keep provides employers with the tools they need to enforce severance obligations effectively. In the event of non-compliance, employers can leverage Keep's built-in collections engine to manage any clawbacks and protect their interests.
Traditional severance agreements are often ineffective at ensuring accountability & compliance, and severance payments alone aren’t enough to incentivize former employees to uphold their obligations.
With Keep, employers can take control of the severance process, delivering, tracking, managing, and enforcing obligations with ease. By leveraging technology to redefine the way severance agreements are handled, employers can protect their interests and minimize risk in the face of employee transition.
Learn more about Keep’s smarter severance process.
