There comes a time in every career when you leave a job or the job leaves you. Sometimes you find yourself in a toxic workplace and move on, and other times you get laid off. When you leave a job, sometimes you get a severance package.
This is extra money and possibly other benefits your employer gives you when you’re laid off or fired. Getting a good severance package can help you a lot as you look for a new job. There are things you can do to make sure that you get the most possible in a severance package. In this article, we will go over several strategies to make this happen.
1 – Assess your situation
Before you start thinking about your severance package, it’s important to look closely at your situation. Think about how long you’ve worked at the company and what your job was like. Also, consider why you’re leaving. Are you being laid off because the company is cutting costs, or is there another reason? Your time at the company, your role, and the reason for leaving can all affect your severance package.
In some cases, it might be a good idea to talk to a lawyer like the ones at HKM, especially if you think your departure involves complicated issues. A lawyer can help you understand your rights and might find things that can help you get a better severance package. They know the law and can guide you on how best to bring up your contributions and any special situations at the company that might work in your favor.
Understanding company-specific circumstances that might influence your severance is important, too. For example, if the company is having a good run of healthy profits, they may be more willing to offer generous severance terms. On the other hand, if the company is struggling, you might need to adjust your expectations but still aim for the best possible outcome.
2 – Prepare for negotiations
Getting ready to talk about your severance package is a big step. When you do this is very important. It’s usually best to start these talks as soon as you know you’ll be leaving.
First, find all the papers that show what you’ve agreed to with the company, like your job contract. Also, get copies of your work reviews and any awards or special notes saying you did a great job.
Then, think about what you want from the severance package. This can include how much money you’ll get, keeping health benefits for a while, what will happen with any company stock you have, getting a good reference for future jobs, and help finding a new job.
Before entering negotiations, practice articulating your points by role-playing the negotiation with a friend who can offer feedback. You’ll be able to refine your delivery and anticipate responses from your employer. Being well-prepared means not only knowing what you want but also being ready to explain why you deserve it, using your documentation and understanding of company practices to support your case.
3 – Negotiating strategies
Having some clear strategies for negotiating is going to help you get the biggest severance package possible.
When negotiating your severance package, how you talk and interact with your employer is key. One smart approach is to think about how you frame your request. Instead of just asking for more, explain why it’s fair. For example, you might talk about your long service or the sudden job loss.
Employers might say no for many reasons, like budget limits. If this happens, be ready with a response. You could suggest alternative solutions, like extending your health benefits instead of giving more cash.
Using psychology in your talks can also help a lot. Talk about things in a positive way that shows how both sides win. Showing that you understand the company’s position can make them more willing to listen to you. It’s also smart to ask for the most important things at the best time, like when the conversation is going well.
4 – Finalize the agreement
Before you agree to a severance package, there are a few key things to check carefully. First, look at any non-compete and confidentiality agreements. These parts of the contract can limit where you can work next and what information you can share. It’s important to make sure these terms are fair and won’t make it too hard for you to find your next job.
You should also understand how your severance money will be taxed. Severance pay is usually taxed like regular income, but this can vary. Knowing how much tax you’ll have to pay can help you plan your finances better after you leave your job.
Conclusion
Finally, make sure the agreement includes a release clause that is clear and fair. This clause usually means you agree not to sue the company later. In return, the company gives you the severance package. It’s important this part is written in a way that protects you and is reasonable. Sometimes, a lawyer can help make sure this clause is going to work in your benefit.
