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Ask the HR Manager: Can I Negotiate the Severance Package?

Mark Cohen, Job-Hunt's  Human Resources Expert, will answer your questions.  We hope that by answering your questions from the perspective of an HR manager, Mark can help you either navigate through the bureaucratic haze that HR sometimes becomes or help you ask the right questions to get what you need.

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Ask the HR Manager:
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How can I get a reference from my boss?
Can I negotiate my severance package?

Question: I’ve been offered a severance package, but after 15 years of service I’m very disappointed with what they’ve offered me. Can I negotiate with them? If I try to negotiate, will they withdraw the offer?

Answer:

The old axiom applies here too - everything is negotiable. I’ve personally negotiated many, both for others and even for myself. It’s surprising, but it’s true.

You may have some special circumstances (like someone in the company willing to fight for you) that inspires them to want to be flexible.

Also, there are other things besides salary to negotiate, for example, keeping your cell phone, your computer or even your company car. You can negotiate these things as an outright gift or to be borrowed for a period of time. Outplacement (career services for people laid off) is also negotiable.

Consult a labor lawyer to get specific advice about your circumstance and how the laws in your state apply to you so you know your rights.

You typically should’t sign anything at the moment you’re notified.

It’s very unlikely that they’ll withdraw the offer. Companies are offering severance as a way of maintaining good will with their remaining employees.

They may not be willing to negotiate, but I’ve never seen a company withdraw a severance offer because someone tried to negotiate.

The important thing is, like with any other contract, consult an expert before you commit to anything. In this circumstance, because the HR department represents the company, they’re not the best source of advice. In a good company, they’ll tell you that.

Bottom Line

Mark will answer new questions every month. Please send your questions to questions at Job-Hunt.org

© Copyright Mark Cohen, 2010.  All rights reserved. Used with permission.

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Mark Cohen is an experienced Human Resources leader who has worked for many employers.  He offers his assistance in this column to help you navigate through the sometimes-puzzling processes of  Human Resources departments.

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