Negotiating Severance: Timing is KeyFrom: Jack Chapman Timing. Don’t just accept the severance offer on the spot. Listen, then say, “I appreciate this, and will consider this carefully. When can we talk about this again in case I have any questions or requests?” When you’ve been fired, separate your anger and resentment from your efforts to get a good severance package. Money won’t change your feelings; it will just help your finances in transition. So make the best deal with that in mind, not as a way to retaliate against your employer. Take time to cool off. Consult the laws of your state, check provisions of your union or other contract if you have one, and modify the following advice accordingly. When you return after having thought about it (and having contacted a lawyer if doing so is relevant in your case – check my site for legal resources), negotiate the best package you can. Negotiating Severance Timing II: Long before you need it.By the way, the best time to negotiate severance is not when you’re fired, but, rather, when you’re hired. Kind of like the way a prenuptial agreement prevents nasty court battles if, alas, divorce occurs. So, also, getting your severance agreed upon at hiring time when the future looks rosy is much better than later when things took a turn for the worse. So, how does one tactfully bring up termination when getting hired? Set up the negotiation by using two softening positions: » It’s not them that you’re worried about and » there’s nothing to lose. It could go like this: “Mr. Employer, there’s one small concern I have. I wonder if we could discuss it.” [Of course!] “Well, do you foresee a change in management, a merger, buy-out or change in ownership anywhere on the horizon?” [ No! ] “Good. It’s just that in times like these with takeovers, IPOs and competition from dot.coms, etc., sometimes a job can be going great and I could be performing well, and then, through no fault of my own, there’s a chance I could be out on the street. So, you don’t foresee this happening, is that right?” [No, no, that won’t happen. ] Notice softening position number one: you avoid implying you don’t trust them by “blaming” potential involuntary termination on possible changes in the market or management. “Well, then what I’m going to request shouldn’t cost the company any money at all. Could we agree that in the unlikely event I’m involuntarily terminated (except for cause) that I could have ____ month’s severance pay including medical benefits?” Notice softening position number two: if there’s no changes in the foreseeable future, then severance won’t cost them a cent! Will you get it? Maybe. Maybe not. But it’s worth asking! Six months is a good time frame. Ask for more if you feel it’s justified. There will likely be conditions – first of all that it applies only to getting fired, not quitting (called involuntary vs. voluntary termination). Also, you may need to agree to a severance package that activates only if termination occurs within a two- or three-year period, or upon termination pursuant to the sale/merger of the company, or change in management, but, obviously, it’s always better for you if you can get it open-ended without conditions. Like insurance, you hope you’ll never have to invoke this clause, but, also like insurance, you’ll be glad you have it if you need it. Jack Chapman is a nationally know job coach and seminar speaker specializing for the last 20 years in salary negotiations and job interviews. For more information on Salary Negotiations, please visit: http://www.breakthrough-salaries.com/ |