Severance packages are pay and services given to employees who are let go, usually reserved for management and above. Negotiating a package requires professionalism, researching previous packages, not signing any agreements until a satisfactory package is offered, and asking for more than necessary.
A severance package is a combination of pay and services sometimes offered to workers who are let go of a job. These packages are typically reserved for management-level employees and above, although most companies are under no legal obligation to pay off unless specified in the initial employment contract. Negotiating a severance package can be a difficult and frustrating time, almost akin to settling a divorce settlement. Understanding the basic tips for negotiating a severance package can help employees get the best deals from their former employers.
An important tip for negotiating a severance package is to remain calm and professional. Losing a job is an emotionally upsetting experience that can cause feelings of anger, bitterness and great anxiety about the future. It is important to prioritize goals early; it’s generally more important to try to get a decent severance package than to vent even justifiable feelings of anger and frustration towards a former boss. Start the negotiation process without hostility, as it may be in the employee’s best interest to prevent his employers from becoming immediately defensive.
Try talking to other former employees to determine their strategies and if they received a severance package. Negotiating a severance package can be significantly easier if an employee has an idea of what previous packages may have been like. Some companies may require employees to sign an agreement where they won’t divulge the details of the separation, but even knowing that such an agreement exists can be helpful. Knowing that the company has paid severance pay in the past may suggest that it’s a possibility in the current situation.
Companies often want things from departing employees that can be used to take advantage of leverage when negotiating a severance package. Some may require that an employee agree to sign a document stating that he will not attempt to bring customers to a new business or work with direct competitors for any length of time. Do not sign any agreement until a satisfactory severance package is offered, agreed upon and signed. If employers fear losing business to a departing employee, it is in their best interest to accommodate severance requests.
Some people may be tempted to accept an extremely small severance package or to suggest only a minimal package for fear of appearing hostile. While it’s important to make reasonable requests, remember the basic rule of bartering: asking for more than is strictly necessary allows a smart negotiator to make small concessions without losing major battles. In addition to salary and benefit requests, consider adding other requests, such as for continued employee discounts on merchandise, gym membership, or other benefits.
Protect your devices with Threat Protection by NordVPN
