You're about to negotiate a severance package. What are the key factors you need to consider?

1 Know your rights

Before you enter any discussion with your employer, you need to know your legal rights and obligations. Depending on your contract, your location, and your situation, you may be entitled to certain payments, benefits, or protections that your employer cannot deny or reduce. For example, you may have the right to receive a minimum notice period, a pro-rated bonus, a pension contribution, or a health insurance coverage. You should also check if there are any clauses that restrict your future employment, such as a non-compete or a non-disclosure agreement. If you are unsure about your rights, you should consult a lawyer or a union representative.

2 Assess your needs

Another factor that you need to consider is your personal and financial needs. You need to have a clear idea of how much money you need to cover your living expenses, debts, taxes, and savings until you find a new job. You also need to think about your career goals and what kind of support you need to achieve them. For example, you may need some training, coaching, or networking opportunities to enhance your skills or find new opportunities. You should also consider your emotional and physical well-being and how the severance package can help you cope with the stress and uncertainty of being laid off.

3 Do your research

Before you negotiate, you need to do some research on the market value of your skills and experience, as well as the typical severance packages in your industry and region. This will help you determine a realistic and fair range of expectations and avoid asking for too much or too little. You can use online tools, such as salary surveys, job boards, or industry reports, to gather relevant information. You can also talk to your colleagues, peers, or mentors who have gone through a similar situation and learn from their experiences and advice.

4 Prepare your case

Once you have done your research and assessed your needs, you need to prepare your case for why you deserve a better severance package than the initial offer. You need to highlight your achievements, contributions, and value that you have brought to the company and how they have helped the company achieve its goals. You also need to explain your needs and goals and how the severance package can help you meet them. You should prepare a written proposal that outlines your requests and the reasons behind them, as well as supporting evidence, such as performance reviews, testimonials, or market data.

5 Negotiate with respect

The final factor that you need to consider is how to negotiate with respect and professionalism. You should approach the negotiation as a collaborative and constructive conversation, not a confrontation or a demand. You should be polite, calm, and confident, but also firm and assertive. You should listen to your employer's perspective and concerns, but also express your own. You should be flexible and willing to compromise, but also know your bottom line and walk away if necessary. You should also document the negotiation process and the final agreement in writing and review it carefully before signing it.

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?