September 2007
 

NEGOTIATING A SEVERANCE PACKAGE

Alfred Mariani

           Many states are categorized as "employment at will states". In essence, it allows employers greater flexibility when discharging employees. Therefore, in Connecticut it is incumbent upon job seekers to take the steps needed to protect themselves against an unanticipated firing or layoff. One way of achieving this goal is through effective interviewing skills. Remember, they are interviewing you, but you are also interviewing them. It is important for a job seeker to assess the culture of a company. This can be ascertained by asking the right kinds of questions. Assessing a corporate culture is important because a positive culture decreases the likelihood of high employee turnover.

           It is also common place for Managers and above to request and receive a severance package with benefits in the event of a firing or layoff. However, if you don't ask for one, employers won't volunteer it. A general rule of thumb is to ask for one months severance for every $20K in salary you are making. So if your salary is $100K you should ask for a five month severance package. This allows you the ramp up time needed to re-enter the job market. It also removes financial pressure, which often forces job seekers to grab the first job that comes along. With adequate ramp up time and with less financial pressure, a job candidate can interview with less stress and be more selective in their job choice.