There is a lot of uncertainty in today’s job markets, making it imperative for most people to retain their employment. However, that’s not always possible in every situation.
It’s important to realize that you may have more power than you realize in a layoff situation. Depending on the company and the circumstances of your separation from your employer, you may be able to negotiate for a severance package to help soften your landing.
The days of golden parachutes are (mostly) over
Unless you are a seasoned executive with a contract and a seven-figure salary, you probably should not expect a golden parachute for a severance package. But that does not mean that you can’t advocate for financial or other compensation, e.g., continued coverage of health insurance for several months.
What is a severance package, anyway?
Typically, these are offered to workers who are leaving the employ of a company. They can include some of the following additional benefits:
- Paid job training for other comparable industries
- Lump sum payments
- Accelerated vesting of retirement benefits
- Letters of recommendation from your employer
- Payment for unused sick or vacation/PTO time
- Equity or stock options
Of course, not all industries typically offer severance packages. Even if it’s not the norm in your industry, it never hurts to ask. But you may need to do more than just make a request.
Learning the fine art of negotiation
Accept that you will likely not receive all that you seek in a severance package because compromise is usually necessary. So, should you overshoot the mark on your request, hoping that you will wind up with what you need?
Not necessarily. One strategy is to meet with other outgoing workers and ask what, if any, severance they received. You can also do online research and read the company manual regarding their policies for severance. In some cases, you may need to escalate the matter by filing litigation over the circumstances of your separation from your employer.