Why pay someone expensive a salary to not work if the company is facing issues with money already? Like i get the idea of severance, and would want it as an individual, but it seems like it just bleeds extra resources.
It's better to just rip that bandaid off and let people move on with their lives. 12 weeks severance is (hopefully) enough time that the former employee can find new work, and also that the company can start adjusting to the down sizing.
A non-productive worker is probably worse than no worker at all.
There's no "probably" to it. Offering a fired employee the right to stay around until their time is up is a mindbogglingly stupid idea. It's a recipe for massive negativity from them & for your existing teams.
Having participated in a RIF before, the two most common questions are 1) "why me?" and 2) "why my friend and not someone else?" Keeping someone who you've clearly said has no future around & asking them to contribute to the future of a company is ... what?
Completely bonkers if you ask me.
It destroys morale. Yes, even more than the layoffs alone. Imagine working alongside people who know, in advance, their days are numbered. Motivation to accomplish work goes out the window, progress slows, and the internal culture will feel like a zombie during that transition and it will probably linger well after those people are gone as that culture infects other members who weren't let go. It's better to just rip the bandaid, take the financial hit, and attempt to salvage whatever remains of the culture.
And that's ignoring the chance that one of your employees isn't too happy at losing their job and decides to make your company a bit uglier in the process.