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Negotiating Your Severance Package - Should You?

Written by: Cecile Peterkin

Article Overview: Given that the economy is not as strong as it could be, many companies are looking at layoffs as an option that will help them to stay in business. No matter how great you are at your job, there is a risk of the company eliminating your position - and if that happens, it’s likely that they will offer you a severance package. Before you really start thinking about negotiating a severance package however, there are a couple of things to consider.

Negotiating Your Severance Package - Should You?

Given that the economy is nowhere near as strong as it could be, more and more companies are

looking at layoffs as an option that will help them to stay in business. No matter how great you are at

your job, there is a risk of the company eliminating your position - and if that happens, it's likely that

they will offer you a severance package. What many people don't know is that negotiating a severance

package is possible.

Before you really start thinking about negotiating a severance package however, there are a couple of

things to consider. The most important thing to remember is that negotiating a severance package is

not about exacting your revenge on the employer that terminated your position.

But just what is negotiating a severance package about?

1. First, negotiating about the package that you are offered is something that gives you the

opportunity to ask for something more realistic. If, as an example, you have worked with the

same company in the same position for a number of years, you are likely to look at an offer of

two months of pay differently than someone given the same offer who'd been with the

company less than a year. Additionally, if your expertise is limited and it's unlikely that a similar

position will open up elsewhere, you may be able to successfully argue for pay over a longer

period of time.

2. Similarly, negotiating with your employer about a severance package is a chance to make

requests for fair treatment. In some cases, particularly if you only have experience with a

given system and way of doing things, you may find that your past employer is willing to offer

an additional stipend that will help you to get training as you look for a new job.

3. The negotiation process is about making a clear and professional case for each item that you

are requesting. Because of this, it's important to determine what the severance package

contains before you try to get something more.

Ultimately, some severance packages are extremely fair; others seem to be more of a token effort

than anything else. If you are laid off and aware of the opportunity to negotiate the package offered,

you will want to be sure that you know what your employer is offering; in some cases, it really will be

best to accept the package as it is written. However that doesn't mean that you should just assume

that you're getting the best possible deal.

Before negotiating a severance package, make sure that you know when you must respond - your

employer will give you a deadline - then read through the offer. If it seems unrealistic or grossly

unfair, you may want to talk to a lawyer about your situation to ensure that you have a solid argument.

When you are able to point out the flaws of the severance package as offered and to make a clear,

professional case for each request that you're making, however, you just might find that it's possible

to come away with more than initially offered.

Copyright, Cecile Peterkin. All rights reserved.

Related Articles
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  Negotiating for the Successful Entrepreneur. How Do You Do It And Still Get What You Want?

Article Tags: career coaching, career guidance, layoffs, negotiating a severance package



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