Negotiating Severance with Outplacement Support

Negotiating severance might not be top of mind when you’re starting a new job, but it’s an important step to ensure you’re protected in case of unexpected changes in your employment status. Although a full-time position may seem secure, being employed “at-will” means you can be let go at any time. 

This article will explore the importance of negotiating a severance package before you begin a new role, and why you should ask for outplacement services to be included as part of that package. We’ll also cover when to involve an attorney, tips for finding the right one, and practical advice on what to say during negotiations.

Most people think of severance as something to discuss at the end of employment. However, negotiating a severance package when you first join a company (ideally when you’re still in the offer stage) can put you in a much stronger position should your employment ever end unexpectedly. 

At this early stage, the company is still trying to woo you, making it more likely that they will agree to favorable terms. If you’ve already started the job, it’s still possible to negotiate severance, but your leverage will likely be lower.

To expand on this, here are the main reasons why you should consider negotiating severance upfront:

1. Maximum leverage: When you’re first offered a job, you have the most leverage because the company wants you to join their team. This is the perfect time to negotiate the terms of your severance, ensuring that you’ll be protected in case of layoffs or other involuntary terminations.

2. Financial security: A severance package acts as a financial cushion during your transition from one job to another. Having this package in place means you won’t have to scramble if you lose your job unexpectedly or worry about how you’re going to pay your monthly bills during your job search.

3. Added value beyond salary: Including elements like outplacement services in your severance agreement adds tangible value to your compensation package. If you are ever let go, outplacement services can help you with job search strategies, resume building, interview preparation, and networking, increasing your chances of finding a new position quickly.

Let’s talk more about why you should be negotiating severance that includes outplacement. As we mentioned, having outplacement services in your severance package can significantly shorten your job search time and increase your chances of landing a new role quickly. 

More specifically, here are key reasons why you should consider negotiating for outplacement:

1. Career guidance: Outplacement services often include one-on-one coaching, which can be invaluable during a stressful job search.

2. Market insight: These services can provide insights into industry trends, helping you target your job search more effectively.

3. Increased confidence: Knowing you have support from career professionals can boost your confidence and help you approach the job market with a positive mindset.

4. Cost savings: Outplacement and career coaching services can be expensive if you have to pay for them out-of-pocket. By including them in your severance package, you can save yourself a significant amount of money in the event of a layoff.

The amount of severance you can negotiate depends on several factors, including your position within the company, the industry standards, and your tenure. In general, the following guidelines may apply for each position level:

It may be more challenging to negotiate a large severance at this level, but requesting one or two weeks’ pay per year of service is standard.

At this level, you could negotiate for one month of severance per year of service, along with potential health benefits.

For these roles, severance can be significantly more generous, often ranging from six months to one year of pay, along with bonuses, stock options, or other incentives.

Click below to download our free Severance Pay Calculator to help you determine what would be appropriate severance pay for your situation and industry.

While many people handle their own severance negotiations, there are times when hiring an attorney is the best course of action. Consider hiring an attorney in the following scenarios:

1. Complex contracts: If your employment contract or severance agreement is lengthy or contains complex legal jargon, an attorney can help you understand the terms and identify any hidden pitfalls.

2. Disputes with employers: If your employer is not providing a fair severance offer, or if you suspect any form of discrimination or unfair treatment, an attorney can advocate for your rights.

3. High-level positions: If you’re in an executive or senior management role, the severance might be more detailed and involve larger sums of money. An attorney can help negotiate more favorable terms, including stock options, bonuses, or extended benefits.

Hiring the right attorney to handle your severance negotiation is crucial to ensure the best possible outcome. Here are some tips on how to find the right one for you:

1. Look for an attorney who specializes in employment law, as they will be most familiar with severance, employee rights, and negotiation tactics.

2. Choose an attorney with a proven track record in severance negotiations, especially in situations similar to yours. You can ask for references or read online reviews to gauge their success rate.

3. Ensure you understand the attorney’s fee structure upfront. Some may charge an hourly rate or contract fee, while others may work on a contingency basis.

Negotiating severance can be a daunting process, especially when trying to get outplacement services included in the package, but approaching it with the right strategy and confidence can make all the difference. Here are some tips on how to effectively negotiate these terms with your employer, ensuring you secure the best possible outcome for your career transition.

Before entering negotiations, it’s crucial to understand what outplacement services typically include, how they work, and what they might cost if you were to pay for them on your own. This knowledge allows you to make a strong case for why outplacement services should be included in your severance.

Starting the conversation on a positive note sets the right tone. Express your enthusiasm for the role while confidently addressing your expectations for severance and outplacement support.

Example: “Thank you for the opportunity to discuss the offer. I’m excited about the role and look forward to contributing to the team. As part of our discussion, I’d like to address the terms of the severance package to ensure we have a mutual understanding.”

Position your request in a way that highlights how outplacement services benefit not just you, but also the company. For instance, outplacement services can lead to quicker re-employment for departing employees, which enhances the company’s reputation and reduces potential unemployment claims.

Example: “Outplacement services would not only help me transition quickly, but also mitigate the company’s legal risk and protect morale by reflecting a commitment to supporting its team members during difficult times.”

Clearly outline what you expect from the outplacement services, such as resume building, career coaching, job search assistance, or interview preparation. Being specific helps ensure that the services provided will genuinely support your career transition.

Example: “I’d like the outplacement services to include one-on-one career coaching, job search strategies, resume support, and networking guidance for a minimum of three months.”

Emphasize how including outplacement services is an investment in a positive employer brand. Companies that offer these services are often viewed as more supportive and empathetic, which can help attract and retain top talent.

Example: “Providing outplacement services can be a valuable way for the company to demonstrate its commitment to employee well-being, even during challenging transitions, and help preserve company brand and retention.”

While it’s important to be straightforward about your expectations, always remain polite and professional. Respectfully presenting your case increases the likelihood that your employer will be open to negotiation.

Example: “Given my experience and the value I plan to bring to the organization, I hope you will agree it’s reasonable to discuss severance terms that would offer a fair safety net, including outplacement support.”

If the employer is hesitant to include full outplacement services, show your willingness to find a middle ground. This flexibility might encourage them to at least offer a partial package or a stipend to help with your career transition.

Example: “I understand if the full package might be outside of the current scope, but I’d appreciate any level of support the company could provide in this area.”

COPYABLE EXAMPLE:
Dear [Hiring Manager’s Name], 

Thank you so much for the offer for the [Job Title] position. I’m excited about joining [Company Name] and enthusiastic about contributing to the team’s growth and success. I’ve been impressed by the company’s vision and culture, and I can’t wait to bring my skills to help further our shared goals. 

As we move forward with finalizing the details of the offer, I’d like to take a moment to discuss the terms of my severance to ensure that we have a clear mutual understanding. Specifically, I’m interested in including outplacement services as part of the severance agreement, as I believe this is a valuable resource for both the company and its team members. 

I’d like to confirm the severance in writing at this early stage to ensure that both parties have a clear understanding of the agreed-upon terms. Having this documentation provides clarity and peace of mind, allowing us to focus fully on the exciting work ahead without concerns about potential uncertainties in the future. 

Offering outplacement services not only supports a smooth transition for employees, but also highlights [Company Name]’s dedication to its people, even in times of change. By providing these services, [Company Name] can reinforce its reputation as a supportive and empathetic employer, which in turn helps attract and retain top talent. 

Ideally, I would love for the outplacement services to include resources like one-on-one career coaching, job search strategies, resume support, and networking guidance for a minimum of three months. These elements can be instrumental in helping team members transition seamlessly while maintaining positive relationships with the company. 

I understand if a comprehensive package might not be feasible, but I would greatly appreciate any level of support that the company could offer in this area. I’m confident that this approach will further demonstrate [Company Name]’s commitment to employee well-being and create a foundation of trust and goodwill. 

Thank you for considering my request, and for the warm welcome I already feel from the team. I’m truly excited to get started making a meaningful impact at [Company Name]. 

Best Regards, 

[Your Full Name]

Of course, even if you employ all of these tips for negotiating severance, it’s possible that the employer might still push back on including outplacement services, citing budget constraints or other concerns. 

Here are a few ways you could respond:

1. Ask about alternatives: If full outplacement services aren’t possible, ask if the company can provide partial support, such as a set number of career coaching sessions or a stipend to use toward these services.

2. Highlight industry standards: Mention that many companies, especially at your level of role and experience, include outplacement services as a standard part of their severance, making it a competitive offer.

3. Stay professional: Keep the conversation positive and professional, focusing on mutual benefits rather than insisting on your demands.

Negotiating a severance package is a large part of protecting your financial future and easing your career transitions. By discussing severance terms, including outplacement services, before starting a new job, you ensure that you’re prepared for any changes that may come your way. 

Remember, this information is intended as a general guide and does not constitute legal advice. Employment laws vary by state, and individual circumstances may differ. Don’t be afraid to hire an attorney if the negotiation process becomes complex, and always remember to approach the conversation with confidence and professionalism. Your future self will thank you for it.

Here are the key takeaways: 

• The best time to negotiate severance is during the job offer stage when your leverage is highest.
• A well-negotiated severance package provides financial security and acts as a cushion during job transitions, making it easier to manage unexpected job losses.
• Securing outplacement services in your severance adds value beyond salary by offering career support like resume building, job search strategies, and interview coaching, which can shorten your job search time.
• Do your research to understand what outplacement services include and how much they cost to strengthen your negotiation position.
• Emphasize how outplacement services benefit both you and the company by enhancing its reputation and retention.
• Hire an attorney for complex severance contracts, disputes with your employer, or high-level roles to ensure you get the best possible terms.
• If the company resists providing outplacement services, suggest alternatives or compromises, such as limited support or a stipend, and remind them that many companies include these services as a standard practice.

If you’re looking for more guidance and resources on outplacement services and how your potential employer can support you, click below to speak with one of our experts and learn about Careerminds’ outplacement offerings.

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Cynthia Orduña

Cynthia Orduña is a Career and Business Coach with a background in recruiting, human resources, and diversity, equity, and inclusion. She has helped 50+ companies around the world hire and retain talent in cities like LA, SF, NY, Berlin, Tokyo, Sydney, and London. She has also coached over 300 people, from entry to senior levels, in developing their one-of-a-kind career paths, Her work has been featured in publications such as Business Insider, The Balance Careers, The Zoe Report, and more. To learn more you can connect with Cynthia on LinkedIn.