You’re negotiating a severance package. What are the most important things to consider?

1 Know your rights

Before you sign anything, make sure you understand your legal rights and obligations. Depending on your situation, you may be entitled to certain protections under federal and state laws, such as the Worker Adjustment and Retraining Notification (WARN) Act, the Family and Medical Leave Act (FMLA), the Consolidated Omnibus Budget Reconciliation Act (COBRA), and the Americans with Disabilities Act (ADA). You may also have contractual rights based on your employment agreement, collective bargaining agreement, or company policy. Review these documents carefully and consult a lawyer if you have any questions or concerns.

2 Assess your needs

Think about what you need to survive and thrive after leaving your job. How long will it take you to find a new job? How much income do you need to cover your expenses and savings? What benefits do you rely on, such as health insurance, retirement plan, stock options, or tuition reimbursement? How will losing your job affect your emotional and physical well-being? These factors will help you determine your minimum and ideal severance package.

3 Do your research

Before you enter a negotiation, do some homework on the market value of your skills and experience, the industry standards for severance packages, and the financial situation of your employer. You can use online tools, such as salary surveys, job boards, and networking platforms, to gather information and compare your options. You can also talk to former or current colleagues, mentors, or career counselors to get insights and advice. The more you know, the more confident and realistic you will be in your negotiation.

4 Be flexible and creative

Negotiating a severance package is not a one-size-fits-all process. You may have to compromise on some aspects of your package, but you can also explore alternative or additional options that can benefit you and your employer. For example, you can ask for more pay in exchange for a shorter notice period, or for more benefits in exchange for a non-compete clause. You can also request other forms of support, such as outplacement services, career coaching, references, or training opportunities. Be open-minded and willing to negotiate on different terms and conditions.

5 Communicate professionally

Negotiating a severance package can be an emotional and sensitive process, but it's important to maintain a professional and respectful tone throughout. Don't let anger, resentment, or fear cloud your judgment or communication. Instead, focus on your value, your goals, and your interests. Express your appreciation for the opportunity and the relationship, and emphasize your desire to reach a mutually beneficial agreement. Avoid making threats, ultimatums, or accusations. Listen carefully to your employer's perspective and respond calmly and rationally. Remember that how you leave your job can affect your reputation and future prospects.

6 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?