Negotiating the Ultimate- Can You Bargain for a Better Severance Package-

Can a severance package be negotiated?

Certainly, a severance package can be negotiated. While the term “severance package” often brings to mind a set amount of money and benefits offered to an employee upon termination, it is important to understand that this package is not set in stone. Both employers and employees have the opportunity to negotiate the terms of the severance agreement to better suit their respective needs and circumstances.

In many cases, employers offer a standard severance package that includes a certain number of weeks of pay, benefits continuation, and possibly a severance bonus. However, these offers are often negotiable, and employees can request additional benefits or compensation that align with their situation. The following are some key areas where a severance package can be negotiated:

1. Payment Amount and Duration: Employees can negotiate for a higher severance pay or a longer duration of pay, especially if they have been with the company for a significant amount of time or if their job was particularly challenging.

2. Benefits Continuation: Employees may want to negotiate for continued health insurance coverage, retirement plan contributions, or other benefits to ease the transition into unemployment.

3. Severance Bonus: If the employee has been a top performer or has contributed significantly to the company, they may be able to negotiate a severance bonus beyond the standard offer.

4. Reference Letter: A good reference letter can be invaluable when searching for a new job. Employees can negotiate for a strong letter that highlights their achievements and character.

5. Non-Compete Clause: Some severance packages include a non-compete clause, which restricts the employee from working for a competitor for a certain period. Employees can negotiate the terms of this clause to protect their ability to work in their field.

6. Release of Claims: Employers often require employees to sign a release of claims as part of the severance agreement. Employees can negotiate the language of this release to ensure that they are not waiving rights that they may have against the employer.

It is crucial for employees to approach the negotiation of a severance package with preparation and a clear understanding of their own value to the company. Consulting with an attorney or a career coach can provide valuable guidance and help ensure that the employee secures the best possible outcome. Remember, the goal of the negotiation is to reach a mutually beneficial agreement that allows both parties to move forward with as much ease and support as possible.