Negotiating The Severance Package.

In today’s still-strong labor market, some employers are deciding that workers will have little problem finding that next job. Gone are the days when severed workers received outplacement counseling until they found a new job. Now, even senior executives may end up with only one to three months of outplacement counseling. The help ends just when the job hunter needs it most.

Today, it is often “every man for himself” in negotiating severance. What can you do if you find yourself suddenly out of a job? Here are a few steps to follow:

Deal with each compensation issue separately. A severance package is made up of many items. These may include an actual cash settlement, career counseling help, benefits, office space, and other items, depending on the industry and company. A seemingly large cash settlement, for example, may quickly be eaten up if you end up paying for outplacement help and benefits.

Decide what you want. List what you think is fair and also what you think you are likely to get. It helps if you have some idea of what others have received. “Company policy” may have nothing to do with what people actually get.
Push to continue your benefits. It costs a company very little to carry employees on its medical plan. But if you try to duplicate that coverage on your own, it would cost a lot.

Develop a mantra. Find one that succinctly describes your feelings, such as “I just want to be treated fairly.” The phrase will keep you focused and give your overall campaign consistency. Then, no matter what they say, you can repeat your mantra.

Negotiate for one year of career counseling help instead of “space.” You’ve probably got a computer at home with free fax service over the Internet. Instead of asking for space that will end after one to three months, get the career counseling help you will need until you find a job. Don’t underestimate the amount of time it will take you–or the help you will need–to find another comparable position. Depending on the complexity of your situation and your own psychological makeup, your search may last a long time-some tough searches have taken more than a year.

Or you may try consulting work, realize that consulting is not for you, and resume looking for an on-payroll job instead. Or, if you do not like your new job-or lose it-you’ll need to continue your search. Traditional outplacement firms do not allow you to return once you have been “placed.” If your company grants you only three months’ outplacement assistance, you could find yourself cut off in the middle of your job search. Instead of traditional outplacement, where most of the expense is in the office space and the career counseling help is relatively brief, ask for one year of career counseling help.

Don’t take money over outplacement. A cash settlement may sound good, but on your own you are unlikely to spend what you need for career counseling services. Instead, you are likely to skimp and end up unemployed or taking a lesser job than what you would have landed if you had received all the help you need. Get whatever cash you can and ask for the outplacement help as an added benefit. Select the career counseling service yourself. Although your firm may have a relationship with an outplacement firm, many companies allow you to select the outplacement service of your choice.
Choose a firm that focuses on you, not on your employer. You will probably be enamored with the space and other amenities offered by the outplacement firms. But space does not help you get you a job: career counseling does.

Use outplacement help to launch your own consulting business. A highly qualified career consultant can help you write a business plan, develop your target list, brochure and verbal “pitch,” and serve as a valued advisor until you are on your feet.

Get career counseling help in negotiating with your employer. Work with an expert in negotiating severance. With this help, you are more likely to be treated fairly, and you may be able to get thousands of extra dollars in your pocket. You can look for another job at the same time you are pushing your company for a better settlement. A traditional outplacement firm cannot help you negotiate with your employer (it is a conflict of interest since your employer is their client).
Find out what other employees have walked away with. Use this information to further your own case. Make sure you don’t settle for less, either.

Get help negotiating your severance package. Every situation is unique. The amount you spend on a little bit of counseling can reap enormous benefits. You will end up with what you deserve and need. It may cost your company more, but as the saying goes, you’re worth it.