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How to negotiate a severance package

On Behalf of | Mar 18, 2024 | Employment Law For Employees |

Losing a job is tough to swallow. Besides the negative impact on your pocketbook, the psychological effect can be devastating.

Thankfully, you have the option of negotiating a handsome severance package. Successfully taking on this challenge can provide ample financial stability and peace of mind.

Know what a severance package encompasses

Severance packages are a set of benefits corporate brass gives employees leaving their companies. It often consists of pay, the value of which depends in part on the length of employment. It may also include health insurance, retirement benefits and compensation for unused vacation time.

Review employment documents

Before approaching the human resources department to discuss the matter, look over employment documents such as hiring contracts and employee handbooks. These records may outline policies that could influence your approach.

Assess your needs

What do you want the most? Is it money for squaring away debts, staying with your current health insurance plan or something else? Knowing what takes priority allows you to focus negotiations on that which is most important.

Prepare your case

Gather evidence of your contributions to the company, including sales numbers and awards. Reiterating your skills and dedication to bettering the organization can strengthen your position.

Initiate the conversation

Request a meeting to discuss the matter. Approach the encounter professionally, dressing appropriately and acting on friendly terms. When the moment feels right, express appreciation for the opportunity to work there.

Be ready to bargain

Employers might begin by offering a subpar package, so have a counteroffer in hand. Use evidence of your value to the company as leverage. That said, stay open to compromise.

Although losing your job is a harrowing experience, a robust severance package provides a safety net that can sustain you until the next phase of your career. It is okay to play hardball if you feel the initial offering is unfair.