How to Lay Off with Compassion - Without Breaking the Bank

When layoffs happen, employers are often stuck between two difficult options: pay traditional severance and pay a high cost or pay less and risk reputational damage. The problem? Severance is a one-size-fits-all solution to a complex and increasingly recurring issue. And it’s fundamentally not scalable. But SUB Plans are.

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Layoffs happen. Sometimes they’re strategic. Sometimes they’re reactive. But whether it’s a single role being eliminated or a sweeping cost-cutting measure, one question always matters: what happens to people when they leave? For high-level executives, there’s usually a soft landing. Exit packages. Advisory roles. Months of runway. But what about the people without a parachute?

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In today’s unpredictable business landscape, financial security is a growing concern for employees at every level. As companies adapt to economic shifts, restructuring, or temporary slowdowns, the threat of layoffs and furloughs can send anxiety rippling through the workforce. While severance is a common safety net for executives, it’s often too costly to extend across the organization. But there’s another option: Supplemental Unemployment Benefit (SUB) Plans. These employer-funded programs offer a flexible, cost-effective way to support more employees—not just the elite—when work disappears, whether temporarily or permanently.

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