You finally have the offer!   You are willing to accept it as is. The last thing you want to do is get off on the wrong foot, or worse yet, have them rescind the offer and their goes your new job. Which, they can do by the way, unless it has as a “respond/accept by” date.  So, how do get a severance package included in your offer? 

Whether you are a senior executive or just starting out, we will explore some things to think about and some techniques that work.  

Although POWER SERVERANCE talks specifically about a severance package, this is just one factor of your total offer.  It is up to you to determine what is important.

So you are nervous about asking for a severance agreement before you even start. There are really two risk factors. Let’s evaluate them.
1. You upset your new company before you start.
2. They rescind the offer. (More on preventing this later. See Countering Verbally)

If you are professional, honest, true and realistic and present yourself as such, neither of these risks are relevant. No company will frown upon or rescind offers if you exemplify professionalism. After all, they are hiring you to be a tough, loyal, dedicated employee. They will think no less of you for fighting for yourself, as long as you do it professionally. If you are pushy, uncompromising, difficult to deal with - expect a problem.

IMPORTANT QUESTION: DO YOU WANT A SEVERANCE AGREEMENT IN YOUR OFFER PACKAGE?
Most people would say “yes.” But, let’s take a look at some factors on why not asking for one might be better.

Once you agree to a severance agreement, it will most likely never be revised in your tenure with the company. (Difficult to bring up this topic two or three years in.) This agreement will be used when you are terminated. It is fixed and defined. There are no ambiguities in letting you go. A company can fully budget, both financially and non-financially for your departure. This gives the company power– not you.

Most pre-work severance agreements will stipulate if you are “terminated for cause” (i.e. breaking company policy, etc.) you will get nothing. This could be for a very small breach, which everyone in the office is doing. In this case, you may have to sue to get a severance they do not have to offer anyway.

You have to waive your right to a wrongful termination. Be careful.

Company History: They have a tradition of being more than fair with severance.

Company Performance: The company is expected to do well, go public, etc. Are you part of that growth? If so, maybe not having an agreement up front is best. Don’t tie your hands.

The more senior your position, the more advisable it is to secure a pre-work severance agreement.

POWER NOTE: ASK! BE NICE! THE MOST THEY SAY IS “NO.”

POWER NOTE: NEGOTIATING A PRE-WORK SEVERANCE AGREEMENT MUST BE DONE BEFORE YOU AGREE TO THE OFFER. After you start working, it is too late.

SECURING A PRE-WORK SEVERANCE AGREEMENT
If you have decided securing an open ended pre-work Severance Agreement is in your best interest, here is a recommended process to make that happen.

1. Secure the written offer
No exceptions. Many company's will offer verbally and then argue for you to commit before they send the written offer. Don't fall for this. Demand a written offer.

2. Write down your “wants”

• Weeks of Pay

• Health insurance

• Relocation back from where you came – costs to sell home, moving expenses, etc.

• Stocks: Vest, not vested. Open options are granted.

• Bonus: Prorated share?

• 401k: Vested to 100%

• Positive letter of recommendation

• Career and job counseling.

• Severance Agreement

3. Counter-verbally (see important note below)
If you have a long and/or significant request list which varies greatly with their offer, it might be advisable to talk about severance last. Get the important factors nailed down - salary, bonus, etc. before talking about severance. You can always mention at the end of the negotiation, “I noticed there is no severance agreement, what is the company policy.” You can then counter this position. If you feel you have pushed them too hard, back off and save severance until you are terminated or leave. You will most likely get one anyway.

ARGUEMENTS FOR A SEVERANCE PACKAGE
What are you giving up by accepting the job?

• Moving – house, family, friends, etc. If you are terminated do you want to move back?

• Is the company in trouble? They are hiring you to fix a problem. What happens if it is not fixable to their standards?

• Small startup company. More risk.

• It takes 6-12 months to find a new position.

POWER NOTES:
1. HIRING A PERSON IS TIME CONSUMING, EXPENSIVE, DIFFICULT AND TIRING. THE COMPANY DOES NOT WANT TO START OVER OR GO TO THEIR SECOND CHOICE. THEY NEED TO GET YOU IN THERE AND TO START WORKING.

2. A RECRUITER WANTS THE DEAL CLOSED. THIS IS HOW THEY GET PAID. THEY CARRY POWER TO HELP YOU.

3. EVERYONE WANTS A SEVERANCE AGREEMENT, EVEN THE HR MANAGER OR YOUR FUTURE BOSS.


POWER NOTE: WHEN DESIGNINGING A PRE-WORK SEVERANCE AGREEMENT LEAVE IT OPEN ENDED.
Give yourself the ability to negotiate additional items if you are terminated.

POWER NOTE: DO NOT SETTLE FOR A PRE-WORK SEVERANCE AGREEMENT WHICH IS SUB-STANDARD.
Unless there is serious risk to the company being dissolved, take your chances of negotiating when you leave.

COUNTERING VERBALLY
Once you have a written offer, it most likely has a “must respond by” date. In this case, you must get back to your prospective company prior to that date, or the offer is automatically rescinded. Although legally debatable, a company cannot withdraw an offer if a “respond by” date is included. But, if you counter in written form, you are formally rejecting their offer. There is no reason to do this. Call the person who signed the offer letter and go through your points with them verbally. Since you are now speaking on the phone, you can list some of the rationale in having them revise the offer. You can also appeal to their human and emotional side. Remember to thank them for the offer. Here are some opening statements to use:

• “I was a disappointed….”

• “I was a bit surprised the offer only (or did not) include…”

• “I would like to take a more serious look at…”

​

​

​

​