Although the economy is weaker than it was at the beginning of the recession in December 2007, companies are offering similar or increased severance packages with potential for negotiation. This is great news for recently laid-off workers who may now have the power to negotiate better benefits prior to leaving a company.
Severance Packages and Negotiation Power
Many companies have maintained their commitment to offer fair severance packages, while some have decided to increase benefits. But whats surprising is that even after being offered a severance package, laid-off workers are able to negotiate the following:
More Pay. Many companies offer laid-off workers the equivalent of 1-2 weeks pay for each year worked; however, workers can always ask for more.
Extension of health benefits. When negotiating, workers can ask for health benefits that extend beyond the severance term.
Outplacement services. Some employees request that the company pay for outplacement services, which can help with resume building and interviewing skills.
Exit Statement. By negotiating the exit statement, workers ensure that the layoff shows no fault to them and instead focuses on downsizing or other company loss as a reason for elimination.
Don't Be Afraid to Negotiate Your Severance Package
A common fear associated with negotiating is that it will jeopardize any chance of receiving a severance package. However, companies traditionally do not pull their offers because a worker has attempted to negotiate, which means the worst that will likely happen is that the company will reintroduce its original offer.
In addition to the possibility of increased severance packages and negotiation power, recently laid-off workers can enjoy a new benefit in the stimulus bill that will help pay for Cobra health insurance. While this cant make up for jobs lost, hopefully it can soften the blow a bit and add a little more to your savings account.
Have you been let go, or are in the process of being laid off? How are you handling your severance package negotiations?