What to Ask for in a Severance Package
When facing the end of an employment relationship, it’s crucial to navigate the severance package negotiation process with care. A severance package can significantly impact your financial stability and future job prospects. To ensure you get the best possible outcome, here are some key elements you should consider asking for in a severance package.
1. Salary Continuation
One of the most critical aspects of a severance package is salary continuation. You should negotiate for a specific duration of salary payments, typically ranging from a few weeks to several months, depending on your position and the company’s policies. This will help you bridge the gap between your last day of employment and the start of your next job.
2. Benefits Extension
In addition to salary continuation, you should also ask for an extension of your benefits, such as health insurance, retirement plans, and other perks. This can provide you with peace of mind during the transition period and ensure that you have access to essential services.
3. Outplacement Services
Many companies offer outplacement services to help employees find new job opportunities. These services can include resume writing assistance, interview coaching, and job search support. Don’t hesitate to ask for access to these resources, as they can be invaluable in your job search.
4. Stock Options and Equity Compensation
If you have stock options or equity compensation, make sure to negotiate the terms of their vesting and exercise. This may include a grace period during which you can exercise your options even after leaving the company.
5. Release of Claims
Before finalizing your severance package, ensure that the release of claims agreement is clear and fair. This document should outline any legal claims you are waiving in exchange for the severance benefits. Carefully review this section and seek legal advice if necessary to ensure that you understand the implications of the release.
6. Non-Compete and Non-Solicitation Clauses
Negotiate the terms of any non-compete and non-solicitation clauses carefully. These clauses can restrict your ability to work in certain industries or to solicit clients from your previous employer. Work with an attorney to ensure that these clauses are reasonable and do not unduly limit your future opportunities.
7. References and Letters of Recommendation
Ask for a written reference or letter of recommendation from your previous employer. These documents can be crucial in your job search and can help you secure new opportunities.
8. Additional Compensation
In some cases, you may be entitled to additional compensation, such as unused vacation time, bonuses, or severance pay. Don’t hesitate to ask for these benefits, as they can provide additional financial support during your transition.
In conclusion, when negotiating a severance package, it’s essential to consider all aspects of your financial and career well-being. By asking for these key elements, you can ensure that you receive a fair and comprehensive package that supports your transition to a new job or career path.
