3 Secrets to a Bigger Severance Payout
Gone are the days when people stayed in one career and one job until they retired. The average person today is going to change jobs at least five times before they get into retirement. With the statistics of people switching jobs higher than the previous generation, one lesson that was definitely never taught to most people is how to negotiate their severance payout and package. How do you start the money conversation when you’ve just been fired? And is it even possible to secure a bigger severance payout?
1. Being prepared emotionally is half the battle
The U.S. job market is a ruthless place largely because of the capitalist nature of our economy. Decisions to retrench people can be made in a moment if it is considered good for the business. With that said, you should understand that there is never such a thing as job security. Don’t live month to month recklessly with the assumption that you’ll still be employed next month. Always live as if you’ve already got one foot out of the company door. This emotional preparation will assist you in the event that you need to leave the job or are fired unexpectedly. This is why it’s important to not only plan and save for retirement, but also for the unexpected possibility of a career change.
2. Take time to consider the severance proposal with an expert
When you’re handed your severance papers don’t sign anything at that moment. Especially if the termination came when you were least expecting it. You’ll probably be in a dazed state of shock for the first few days as you try to come to grips with your new reality. However, because of step 1 above, you may already have an idea of your worth and how to negotiate a bigger severance payout. If you’re unsure about how to calculate the payout or would like customized advice it is a good idea to consult with a financial expert first.
3. The money is hidden in perks you may overlook
Your employer may propose a one-time lump sum or alternatively monthly checks until they’ve cleared their debt to you. At times it’s difficult to negotiate a bigger cash payout especially if you’ve only worked at this particular place for a few months. However, there are other ways you can increase the overall payout you receive from your employer. Look at your severance benefits. Ask them for help with outplacement services, emotional support sessions you may need, job skills assessment, help with creating a job-hunting strategy, and continued medical coverage. Money will still be spent on these aspects once you’re unemployed, so if your employer can assist you in these areas, it will help you along the way.
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Reed Financial Group has been helping people with their career financial transition process for over 20 years. Get more tips and tailored advice on how to obtain a bigger severance payout from our team of financial experts.
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