You walk into work with a coffee cup in hand and sit down at your desk to start answering emails and putting the finishing touches on a presentation for a client meeting. It seems like any other day…until it doesn’t. You’re typing away when you get an email from your boss asking you to meet him in the conference room. You click “send” on an email and head off to meet with your boss and, when you get there, you see that someone from human resources is there too and they have a file with your name on it.
You hear the words no one ever wants to hear: “We have to let you go.” You’re half listening and half freaking out internally when they tell you that they no longer need your position and that today will be your last day with the company. They explain that they are grateful for the accomplishments you’ve had throughout your time at the company, that they are happy to be a reference during your search, and that they’ve prepared a severance package.
You know that you can negotiate your starting salary and raises, but did you know that you can also negotiate severance? You probably want to sign on the dotted line and get the heck out of the claustrophobic conference room, but it’s not recommended. “In the heat of the moment it may be tempting to simply sign and receive a check, but it’s in your best interest to have a legal professional look over it before signing,” says Patrick Colvin, a New York-based strategic human resources business partner at USA Today Network. I talked to career experts to find out their advice for negotiating your severance agreement.
Review the agreement carefully:
To decide how to negotiate severance, you have to read the agreement and find out exactly what you would be agreeing to in exchange for your severance. “It’s important to understand that receiving severance typically depends on you signing an agreement,” cautions Colvin, adding that you may fortify certain rights like the ability to work for certain employers for a specific time or the ability to disclose the terms of the agreement. You can add, remove, or edit clauses from the document such as adjusting the non-compete specifications. “The thing to keep in mind is that it is a ‘this’ for ‘that’ type of situation so everything is fair game to negotiate. The company is providing ‘this’ in exchange for ‘that,’ which is your signature,” says Colvin.
Decide what you are asking for:
As with any negotiation, you have to come to the table knowing your desired outcome. You can negotiate the size of your severance check, but there are other things you can negotiate to help you during your unexpected job search. “Some of the more obvious elements to negotiate are more cash in the form of a lump sum or extension of salary, insurance coverage, and pay for unused sick and vacation days,” says Avery Roth, founder of the New York-based career coaching firm Change@Work. But she also recommends asking the company to pay for career coaching sessions, set you up with an employee outplacement firm, or provide a positive recommendation to future employees.
Lead with your accomplishments:
When you get laid off, it’s not because you did anything wrong. The company may be eliminating positions because their margins were low, they may be reorganizing and getting rid of a department, or they may be strapped for cash because they just lost a few big clients. You have more bartering power to negotiate severance than you would if you were fired for cause. “Remind them of all of your accomplishments and all of the contributions that you’ve made,” says Alexandra Dickinson, founder of the New York-based negotiation coaching firm, Ask For It. “You can always ask. But back it up with how strong your performance has been.”
