Feb 9, 2009 7:03 pm US/Eastern
Learn How To Negotiate Your Severance Package
BOSTON (WBZ) ―
When Raul Villaverde was laid off recently, he wasn't crazy about the severance package his company offered, so he fought for a different deal on the way out. "There were certain aspects of the package which I did not like."
Kirk Nemer of
CareerProtection.com says Raul was smart to fight. "A severance offer is just like an employment offer. It's negotiable and a lot of employees don't realize that."
Because times are tight, it may take a little more work. "The severance pay packages are not as generous," explains Nemer. "That's why it's so important, more than ever, for employees to negotiate."
Nemur says don't sign anything immediately. Absorb the shock and take the time to completely understand what's on the table. These documents are written for the company's benefit, so you may want to consult a lawyer. "There are many restrictions, covenants, such as non-compete, non-solicitation clause, non-disparagement… If the employee doesn't know what they're signing and goes forward, they may have troubles in the next few years."
There is more than just cash involved. "There are many elements to a severance package," explains Nemur. "Many companies offer outplacement or transitional services where they hire a firm to find you a new job. Many companies will pay your health and dental and vision insurance."
WBZ's Unemployment Guide
You can even ask to keep your cell phone or company computer to help find your next job. It's in the business's best interest to do what they can as you go. "If word gets out that it's a bad company and you treat employees very poorly on the way out, you're going to have a tough time picking up employees in the future," said Nemur.
Raul won his fight and offers this advice for others. "Know you situation before the severance package is handed to you. Try to understand what your value is to the organization."
The longer you have been at the company, and the higher your position, the more bargaining power you may have. But remember, many companies are not required to offer any severance at all. And if you're over 40 and laid off, you also have the right to additional information to make sure you were not discriminated against on the way out.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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