When you’re ready to leave your job, or when your employer forces you out, a severance package might come into play. You need to aggressively negotiate here to get what you deserve out of the process, otherwise you’ll be left without the resources that you need moving into the next phase of your life. That’s why in this post we want to look at what you need to know about severance packages and how to effectively negotiate one that protects your best interests.
What you need to know about severance pay
Generally, severance pay is given to employees who lose their jobs due to downsizing or who chose to retire. However, those who are contracted with an employer may have severance pay terms that have to be adhered to, and some employees who are let go are given a severance package as a sign of goodwill.
A severance package can provide a lot of support, too, giving you a buffer between leaving your job and securing the next one. This might include payout of accrued time off, a lump sum payment, and ongoing insurance coverage. It could also include services to help you find a new job or secure training to better position you for the employment market.
It’s important to note, though, that companies are not required to pay severance. That said, some contracts call for it, and some companies have policies that mandate severance pay.
How can you effectively negotiate for an appropriate severance package?
It can be stressful to think about negotiating a severance package. After all, you might feel like you’re in a weak position to push for more compensation when your employer is already letting you go and if they’re not required to pay you severance. However, there are some tips that might position you for a better outcome than you think. This includes:
- Reviewing your company’s policies on severance pay so that you know what to expect going into negotiations.
- Carefully assessing the terms of the initial offer so that you understand what’s been put on the table and where you may have to push harder to get what you want.
- Identifying factors that make your circumstances unique and may warrant more in severance pay, such as your years of service with the company, your needs to effectively reenter the employment market, and the reasons why you’re leaving your employer.
- Highlighting the contributions that you’ve made to your employer.
- Striking the right tone so that you don’t come off so aggressive that you shut your employer down and kill negotiations.
- Articulating the justifications behind your counter-offer.
- Clarifying whether the severance package includes any post-employment restrictions, and, if it does, consider whether it justifies asking for more out of your severance agreement.
As you can see, there’s a lot you can do to ready yourself for effective severance package negotiations. Just make sure you’re prepared going into the process, otherwise you could miss out on an opportunity to secure the resources that you need and deserve.
Confidently and competently navigate your severance package issues
There’s certainly a lot on the line when you’re dealing with a severance package. But if you’re like most people, you don’t feel well-equipped to negotiate the process on your own. That’s why a lot of people seek legal assistance when they’re confronted with these circumstances. While the decision to seek legal counsel is completely up to you, we encourage you to continue reading up on severance packages regardless of whether you seek legal advice. That way you educate yourself and are better positioned to make the fully informed decisions that are right for you.