Losing your job is never easy, but knowing how to navigate the often-difficult conversation around severance pay can significantly ease the transition. This guide provides a straightforward approach to negotiating a more favorable severance package, helping you secure the financial support you need during your job search.
Understanding Your Leverage
Before you even think about negotiating, understand your position. What's your value to the company? How long have you been employed? What are your skills and experience? Strong performers with a long tenure and in-demand skills typically hold more negotiating power. Think about your contributions and how your departure impacts the company. This self-assessment is crucial for a confident negotiation.
Key Factors Affecting Your Severance:
- Company Policy: Familiarize yourself with your company's severance policy. This sets a baseline, but it's often negotiable.
- Your Performance: A stellar track record strengthens your negotiation position.
- Market Conditions: A booming job market might weaken your leverage, while a tight market strengthens it.
- Your Employment Contract: Review your contract carefully. It might contain clauses related to severance.
- Your Industry: Industry norms regarding severance can influence what's considered reasonable.
Preparing for the Negotiation:
Strong preparation is half the battle. Don't go into the conversation unprepared. Here's a plan to get you started.
1. Research Industry Standards:
Research average severance packages in your industry and location. Websites like Glassdoor or Salary.com can provide valuable insights. Knowing the market rate will help you set realistic expectations.
2. Quantify Your Contributions:
Prepare a concise summary highlighting your significant contributions to the company. Use concrete examples and quantifiable results whenever possible. This demonstrates your value beyond your job description.
3. Determine Your Desired Outcome:
Clearly define your desired severance package, including the amount, duration of benefits continuation (health insurance, for example), and any other perks you'd like to negotiate (outplacement services, for instance). Have a realistic "walk-away" point as well.
4. Practice Your Pitch:
Practice articulating your value and your desired severance package. Role-playing with a trusted friend or career counselor can significantly improve your confidence and delivery.
Negotiating Your Severance:
The actual negotiation is a delicate dance. Remember to be professional, respectful, and assertive.
1. The Initial Conversation:
Express your gratitude for your time at the company. Then, politely but firmly state your intention to negotiate the severance package. Present your prepared summary of contributions and your desired outcome.
2. Handling Objections:
Be prepared for objections. The company may offer a lower amount than you requested. Listen carefully to their reasons, but don't be afraid to counter with your well-researched justification.
3. Finding Common Ground:
Focus on finding common ground. Be willing to compromise on certain aspects to secure a more favorable overall package. For example, you might compromise on the duration of benefits if you can secure a higher lump-sum payment.
4. Get it in Writing:
Once you've reached an agreement, ensure everything is documented in writing—a formal separation agreement. Review this agreement carefully before signing. It should outline all agreed-upon terms, including payment amounts, benefit continuation, and any other negotiated terms.
Beyond the Numbers:
Remember, severance negotiations are not just about the money. Consider negotiating for benefits beyond the financial compensation, such as:
- Outplacement Services: These services provide career counseling, resume writing assistance, and job search support.
- Extended Health Insurance: Maintaining health insurance coverage during your job search is invaluable.
- Positive Reference: A strong reference can significantly enhance your job search efforts.
By following these steps and remembering to approach the conversation with professionalism and preparation, you can significantly increase your chances of negotiating a more favorable severance package and navigate this challenging time with greater confidence. Remember, you deserve fair compensation for your contributions to the company.
