When The Ax Falls--Think Before Saying Yes
It's Friday afternoon, and the boss calls you into his office. "Business has been bad," he says. "we're sorry, but we're going to have to let you go. We'll give you two week's salary. We wish we could do better, but we just can't. We wish you the very best of luck."
If you're like most people, you go numb and slip into shock. You never even think to try to negotiate a better severance. But going into shock and just letting go can be very expensive.
If you find yourself in this situation, give yourself time to think and negotiate. Instead, say, "Well, this is sudden, and puts me in very difficult circumstances. Let me take what you said home and think about it. I'll talk to you later, when I'm not in shock."
Remember that the firing process is unpleasant for the employer too. No one actually likes letting people go, and if you keep your head about you, you can profit from their discomfort and guilt.
As we've said, most people just accept what they're given and leave. Or they get angry. They may threaten to sue or "go postal," but after the initial flurry of anger, they usually just let go.
Of course, you shouldn't go to the other extreme. Threatening to sue or writing to your Congressmen usually won't help much (NOTE: If you feel you have been discriminated against because of your age, color, sex, etc., you may want to call a labor attorney to discuss filing a claim with the Equal Employment Opportunity Commission).
Note: Be sure to check out our Free career webinars
If you give yourself some breathing room, you'll be able to take a rational approach to negotiating severance. Here are four things to consider:
1) Always ask for more severance pay. Some norms are: one to two weeks' pay for each year of tenure with the company; mid-level executives can ask for up to six months; top executives can expect packages of considerable size. Accrued vacation and other benefits already owed to you are important to spell out in a severance agreement.
2) Ask for job search assistance or outplacement. Outplacement firms are job search counselors, and can help you find a new job quicker than you will on your own. Outplacement packages vary considerably in price and quality.Full executive outplacement programs can cost 10-15% of annual earnings and should provide individual consultation until you are hired. Low-end outplacement packages may include only a few group job-search training seminars and help with your resume.
3) Look for any value added activities you can do for the company for compensation. If you are in sales and have accounts pending, you might negotiate for the commissions on those in exchange for assistance with transitioning the accounts. If you are in the middle of an important project, you might negotiate extra severance for completing portions of it before you leave.
4) Negotiate for a good letter of recommendation and references. If your boss truly respects you and your work, ask him to specifically recommend you to others in the industry. A letter from him/her to high-level friends is more powerful than a resume from you.
The key is to take some time to discuss and negotiate the terms of severance. You can't do that the day you get the pink slip. But you can be calm enough on that day and not accept the severance right away. Tell them you want to think about it and you'll be back. The extra time and reflection will add up to a much more comfortable financial picture for you in the long run.
If you're like most people, you go numb and slip into shock. You never even think to try to negotiate a better severance. But going into shock and just letting go can be very expensive.
If you find yourself in this situation, give yourself time to think and negotiate. Instead, say, "Well, this is sudden, and puts me in very difficult circumstances. Let me take what you said home and think about it. I'll talk to you later, when I'm not in shock."
Remember that the firing process is unpleasant for the employer too. No one actually likes letting people go, and if you keep your head about you, you can profit from their discomfort and guilt.
As we've said, most people just accept what they're given and leave. Or they get angry. They may threaten to sue or "go postal," but after the initial flurry of anger, they usually just let go.
Of course, you shouldn't go to the other extreme. Threatening to sue or writing to your Congressmen usually won't help much (NOTE: If you feel you have been discriminated against because of your age, color, sex, etc., you may want to call a labor attorney to discuss filing a claim with the Equal Employment Opportunity Commission).
Note: Be sure to check out our Free career webinars
If you give yourself some breathing room, you'll be able to take a rational approach to negotiating severance. Here are four things to consider:
1) Always ask for more severance pay. Some norms are: one to two weeks' pay for each year of tenure with the company; mid-level executives can ask for up to six months; top executives can expect packages of considerable size. Accrued vacation and other benefits already owed to you are important to spell out in a severance agreement.
2) Ask for job search assistance or outplacement. Outplacement firms are job search counselors, and can help you find a new job quicker than you will on your own. Outplacement packages vary considerably in price and quality.Full executive outplacement programs can cost 10-15% of annual earnings and should provide individual consultation until you are hired. Low-end outplacement packages may include only a few group job-search training seminars and help with your resume.
3) Look for any value added activities you can do for the company for compensation. If you are in sales and have accounts pending, you might negotiate for the commissions on those in exchange for assistance with transitioning the accounts. If you are in the middle of an important project, you might negotiate extra severance for completing portions of it before you leave.
4) Negotiate for a good letter of recommendation and references. If your boss truly respects you and your work, ask him to specifically recommend you to others in the industry. A letter from him/her to high-level friends is more powerful than a resume from you.
The key is to take some time to discuss and negotiate the terms of severance. You can't do that the day you get the pink slip. But you can be calm enough on that day and not accept the severance right away. Tell them you want to think about it and you'll be back. The extra time and reflection will add up to a much more comfortable financial picture for you in the long run.
May 16, 2015 by
- share:
