A complete layoff package in 2026 has six parts: severance pay, benefits continuation guidance, job search support (outplacement), references, clear equity/final-pay logistics, and honest communication. None except final pay and any WARN-mandated notice are legally required in most US states — but each one measurably affects how fast departing employees recover and how the layoff lands with the employees who stay. Here is the checklist HR teams actually need, with benchmarks.
The checklist
1. Severance pay
- Benchmark: 1–2 weeks of pay per year of service; executives and long-tenured staff often more.
- Put the calculation method in writing and apply it consistently — inconsistency is the most common trigger for disputes.
- If you ask for a release of claims in exchange, employees over 40 must get the ADEA/OWBPA review windows (21 or 45 days, plus 7-day revocation) — have counsel check the agreement.
2. Benefits continuation
- Provide written COBRA instructions (or your state's equivalent) with real dollar figures — sticker shock is worse when it arrives unexplained a month later.
- Some employers subsidize 1–3 months of COBRA; it's one of the most appreciated line items relative to cost.
- Include 401(k) rollover instructions and HSA/FSA deadlines.
3. Job search support (outplacement)
- Traditional coach-led programs: $1,000–$5,000+ per employee, scheduled coaching plus a resource portal. Fits executive packages.
- Budget virtual coaching: from ~$500 per employee (VelvetJobs, RiseSmart Express).
- Modern platform-based outplacement: DirectApplicant — which we build — publishes program pricing at $749 per employee (3-month Core program; volume discounts at 50+) and deploys the same day: employees get real-time job alerts from employers' own career pages, ghost-job detection, application tracking, and 24/7 AI coaching.
- Whatever you choose, have it live on notification day. "Details to follow" support is dramatically less used than access handed over in the exit conversation.
4. References and verification
- A signed reference letter from the direct manager, plus a LinkedIn recommendation, costs nothing and meaningfully helps — generic "we confirm employment dates" letters do not.
- Decide and communicate your verification-of-employment policy so employees know what future employers will hear.
5. Equity, final pay, and logistics
- Final paycheck timing is state law — several states require payment on the last day.
- For equity: state clearly what's vested, what's forfeited, and the post-termination exercise window. Surprise 90-day exercise windows are a recurring source of anger and litigation.
- Cover equipment return, expense reimbursement deadlines, and personal email/file transition in one written logistics sheet.
6. Communication
- Notify individually and privately, with the manager and HR present; never by mass email.
- Tell remaining employees the same day what support departing colleagues received — retention and morale among survivors track closely with how the layoff was seen to be handled.
- If WARN applies (100+ employees, thresholds met), the 60-day clock and notice format are statutory — get the notices right before anything else.
What it costs to do all of this well
For a 50-person reduction at a company averaging $90,000 salaries: severance (say 6 weeks average) dominates at roughly $500,000; COBRA guidance and references are near-free; platform-based outplacement adds roughly $31,800 (50 employees × $749 Core with the 50+ volume discount); a traditional program would add $150,000. The support items that most change the employee's trajectory — job search help, references, honest communication — are the cheapest lines in the budget.