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Home Self Improvement Advice How To Negotiate A Severance Package
How To Negotiate A Severance Package PDF Print E-mail
Written by John Smith   
Whenever the topic of negotiation is a raise, a promotion - or the last important interaction between employer and employee, the employees feel they are powerless and this includes six-figure managers and executives.
by JohnSmith


Whenever the topic of negotiation is a raise, a promotion - or the last important interaction between employer and employee, the employees feel they are powerless and this includes six-figure managers and executives.

Here are five tips for cutting the best severance deal for you, despite the recession: 1. Even if your company has a policy that says every employee at a certain level, with a certain tenure, receives X weeks or X months of salary as severance, decisions ultimately are made on an individual basis. The most important thing for employees at all levels to understand is all severance packages are not created equal.

2. Know your leverage. Remember that Leverage is the currency you have to trade with your employer in severance negotiations, so valuing it properly in advance is critical.(1) the employer wants to protect against you criticizing the company after you're gone;(2) the employer may need you for something later, such as testifying in a lawsuit or providing information to a replacement; or (3) the employer wants to protect against being sued, particularly if you're an older worker, a woman, or in a racial minority.

3. Even if you're a seasoned negotiator, you should prepare for your severance discussion like you would a big job interview. . Know exactly what you're going to say. For example, if you say, "I think this could be age discrimination," the negotiations will immediately be over. But if you say, "Are you getting rid of me because you think I'm over the hill?" it raises the same issue, but in a way that isn't an accusation. It can even induce sympathy from your boss.

4. If you are interested in going back to school, you might ask the employer to convert part of your cash payment to a tuition benefit, which will reduce the amount of taxes you have to pay on your severance check. Be creative and look at whether you'd be better off converting some of your non-cash severance benefits to cash, or vice versa. Many employers offer outplacement services. If you are planning to start your own business or already have a new job lined up, you might ask your employer to convert this benefit to cash.

5. Chances are, the timing of 401(k) vesting is the last thing on your employer's mind when they lay you off. But employees have successfully argued in lawsuits that they were fired so their employer wouldn't have to vest them. You can use this fact as leverage in your severance discussions. At most companies, you have to work there for a certain period of time before your employer's 401(k) matching contribution vests - meaning you can take it with you.

About the Author:

JobConcierge offers executive jobs - real people who search 300 job boards and submit applications to take care of your entire online job search. The site is known for its best executive search firms

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