Determine the compensation that the fictitious company may provide to the separated employee.

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Compensation that a fictitious employer may offer to a separated employee depends on many factors, including the position and level of seniority of the employee as well as whether the separation was voluntary. It also relies on any contracts between employee and company, or any labor laws applicable in the area. In the case of an involuntary separation due to layoffs there might be a legal requirement for severance payment or benefits. Some employers will also offer additional incentives, such as lump-sum payments as part of the job separation package. It is at the discretion of management, if there aren’t any contractual obligations, to determine what type of compensation to provide. This could be outplacement, an extended health care plan, or bonus payments, depending on resources and their willingness to invest to retain goodwill among departed employees. It is crucial that these decisions are evaluated case by case to ensure fairness when providing compensation types for different separations.