What do you do if you're unsure about accepting a severance package?

1 Assess Offer

Before making any decisions, take a deep breath and carefully review the severance package. Understand every component: salary continuation, benefits, outplacement services, and any non-compete clauses. Consider how each part will affect your short-term financial stability and long-term career goals. If anything is unclear, don’t hesitate to ask for clarification. Remember, this isn't just about immediate compensation—it's about setting yourself up for success in the next chapter of your professional life.

2 Legal Advice

Consulting with an employment lawyer can provide valuable insight into the legal aspects of your severance package. They can help determine if the terms are standard for your industry and position, and if they comply with employment laws. An attorney might also identify additional leverage you have for negotiating terms, such as unused vacation time or outstanding bonuses. While there's a cost to legal advice, it's an investment that could potentially increase your severance benefits.

3 Negotiate Terms

If you feel the initial offer isn't fair or doesn't align with your needs, consider negotiating. You have the right to ask for more money, extended benefits, or other terms that can assist you while you search for new employment. Be prepared to present a reasoned case for why you deserve these additional terms. Approach the negotiation as a collaboration rather than a confrontation; your goal is to reach an agreement that both you and your former employer can accept.

4 Financial Planning

Understanding your financial situation is critical when considering a severance package. Calculate your living expenses and how long the severance will support you. Will you need to dip into savings or retirement funds? How does this package interact with unemployment benefits? A financial planner or advisor can help you understand the implications of your severance and assist in developing a budget or financial plan to manage your funds during this transition period.

5 Emotional Impact

The emotional toll of job loss is significant and can cloud your judgment when evaluating a severance package. It's important to acknowledge your feelings but not let them drive your decision-making process. Seek support from family, friends, or a professional counselor to help manage stress and maintain perspective. Keeping a level head will allow you to assess your severance package objectively and make choices that are in your best interest.

6 Future Employment

Finally, consider how accepting the severance package might impact your future job prospects. Will it provide enough support while you look for new opportunities? Does it include outplacement services that could help you find your next role? Also, be aware of any non-compete clauses that could limit your employment options. Make sure you're not sacrificing future opportunities for immediate gains, and that the severance package aligns with your career objectives.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?