NEW YORK, Aug 30 (Reuters) - More and more North American executives who are weighing job offers want to know what they would get if the company they join eventually decides to let them go.

Along with such compensation as salary, bonus and stock options, high-level managers are negotiating their severance even before the ink on their employment agreements is dry.

In good times, companies were happy to offer contracts that paid executives through the end of a guaranteed period even if they were kicked out before then. But with cost-cutting still a priority, fewer companies offer such deals, which means executives have far less job protection.

Besides, many executives have learned from the spate of corporate scandals in recent years that their jobs could be in jeopardy if those above them get driven out over an accounting blowup.

"Companies are saying that 'we can hire and fire at will' and a lot of companies are not offering employment agreements (for a guaranteed term)," said Dan Moynihan, a consultant at Compensation Resources Inc. in Upper Saddle River, New Jersey. "So the next best alternative is to get a negotiated, upfront, going-away present."

For the company, such an arrangement is still cheaper than a long-term contract, he said.

Many job candidates are following the advice of employment lawyers, who recommend discussing a severance package with the future employer before taking a position there.

During the hiring process, both sides feel very positively about each other, said Ken Suddleson, an employment lawyer in the Los Angeles office of law firm Morrison & Foerster LLP.

"When people are leaving, those feelings have changed, often dramatically," he said, "and it is extremely difficult under those circumstances to negotiate a severance."

But corporate watchdogs complain that such deals could sometimes harm shareholder interests as companies pay millions in severance.

"There should be some employment protection if people lose their jobs for no fault of their own, whether that is because of a merger or through the appointment of a new CEO, but one year's salary is the maximum that should be paid in any of the situations instead of three years' salary and bonus," said Paul Hodgson, a researcher with Portland, Maine-based Corporate Library, which provides corporate governance data.

SHOW ME THE MONEY

Moynihan of Compensation Resources said he recently helped negotiate a severance package for a client who was offered a management position at General Electric Co. (NYSE:GE - News). The executive demanded the equivalent of one year's salary plus continued benefits, and the conglomerate approved it.

One reason executives are asking for severance at the employment interview stage is that managers below the top tier face an increasing risk of getting fired because of a financial scandal.

Earlier this year, Nortel Networks Corp. (Toronto:NT.TO - News; NYSE:NT - News), North America's largest maker of telecom equipment, fired its chief executive, chief financial officer and controller because of accounting problems. More recently, it terminated seven other individuals involved in financial reporting.

Scandals aside, job-hunting executives also are concerned that the CEO who hires them may not always be there.

Often the team brought in by a departing chief executive is "at the mercy of the new leadership," said Rick Junius, executive vice president at outplacement firm Lee Hecht Harrison's Los Angeles office. As a result, many executives are asking for some kind of severance deal upfront.

Compensation consultants are also fueling the trend by spreading the word about what a corporation -- say, Company A -- is offering its executives, said Rakesh Khurana, who teaches organizational behavior at Harvard Business School.

"Company B's executives ask 'Why aren't we getting the same deal?'" Khurana said. "Executive recruiters say this is the new norm and this is the new standard." Most U.S. Companies Plan to Increase Hiring of Middle Managers and Professional Staff During Second Half of 2004
Tuesday August 10, 8:33 am ET Companies Placing a Greater Emphasis on Retention Most International Regions also Showing Progress

CLEVELAND, Aug. 10 /PRNewswire/ -- Management Recruiters International (MRI), the world's largest search and recruitment organization, today announced the results of its 54th annual International Hiring Survey indicating that a solid majority of the executives who participated -- 58 percent -- plan to make new hires during the remainder of 2004. The study, which was comprised of personal interviews with executives responsible for the hiring of middle management and professional staff at their organizations, included contacts from major industry sectors and from most major cities.

Of the 356 executives interviewed for the study, 58.2 percent indicated plans to make additions to their staffs during the second half of 2004, up more than 10 points from first half of 2004. Another 37 percent plan to maintain their current staff sizes, down 8 points from the first half. Only 4.8 percent of survey respondents plan to decrease their staff in 2004, down close to 2 points.

"We believe that there is pent-up demand for new hires," said Allen Salikof, president and CEO of MRI. "Many companies that have held off on filling open positions for the past two years are now seriously addressing their needs. They are seeing opportunities to increase market share that will be lost if they fail to staff up adequately."

 Projected new hires in several key industry sectors include the 

following: Industry Increase Pharmaceuticals 80.0 % Aerospace 54.0 % Finance 64.3 % Automotive 27.8 %

Another interesting fact uncovered during the study is that most U.S. businesses are planning to increase the efforts to retain employees in the second half of the year. Of the executives surveyed, 60 percent said that they intend to increase their retention efforts with almost an equal balance of salary increases (32.9 percent), recognition programs (39.9 percent), enhanced training (35.4 percent) and additional benefits/perks (34 percent).

"We expect increasing mobility in the job market. Employees have also had a wait-and-see attitude about changing jobs, and their employers are also more aware that they have to invest in retaining top talent as the marketplace becomes more competitive once again," said Salikof.

The MRI International Survey also found that plans to increase hiring also cross international boarders. Following are the findings by region:

 Region Increase United Kingdom 56.5 % Australia 54.4 % Germany 

50.0 % Japan 48.1 % Portugal 26.1 % Ongoing National Survey

This is the 54th in an ongoing series of polls conducted by Management Recruiters International, Inc. (MRI). The survey was conducted in accordance with the professional and ethical standards of the American Marketing Association and the Marketing Research Association.

MENLO PARK, Calif., March 18 /PRNewswire/ -- Managers take note: If the next rung in the career ladder appears out of reach to workers, you could be in danger of losing them, a new survey suggests. Thirty-nine percent of executives said good employees are most likely to quit their jobs due to a lack of advancement opportunities. Unhappiness with management was the second most common answer, cited by 23 percent of those polled.

The survey was developed by Robert Half International Inc., the world's first and largest staffing service specializing in accounting, finance and information technology. It was conducted by an independent research firm and includes responses from 150 executives with the nation's 1,000 largest companies.

Executives were asked, "Which of the following is most likely to cause good employees to quit their jobs?" Their responses:

Limited opportunities for advancement 39% 

Unhappiness with management 23% 

Lack of recognition 17% 

Inadequate salary and benefits 11% 

Bored with their job 6% 

Lifestyle change (moving, etc.) 2% 

Other/don't know 2% 100%

"Helping top performers reach their professional goals is essential to retaining them," said Max Messmer, chairman and CEO of Robert Half International Inc. and author of Motivating Employees For Dummies? (John Wiley & Sons, Inc.). "The best employees are ambitious and may not stay in a position long if it lacks growth potential."

Added Messmer, "If offering a promotion isn't an immediate option, managers should consider providing employees with projects that will prepare them to assume greater responsibilities in the future."

He offered these additional tips to help managers retain valued staff members:

• Gauge perceptions. Are your employees happy with their roles and with management? Gather individual feedback on the work environment and the types of changes that might enhance job satisfaction.
• Reward extra effort. Individuals who frequently accept added responsibility or an increased workload should be rewarded. If budgets are tight, consider alternatives such as a larger office or a more flexible schedule.
• Give kudos. Praise doesn't have to be costly or time consuming, but it should be frequent and personalized. A sincere thank-you note and recognition during a staff meeting for a job well done are inexpensive yet effective motivators.
• Avoid staff burnout. The most capable employees tend to have the most on their plate -- and they're least likely to speak up when the workload is too heavy. If hiring more staff isn't an option, bring in temporary help during peak times.