The Arizona Republic
From April 7, 2002 Print Edition
Negotiate severence pay before accepting the job
By D.J. Burrough
Special for The Republic, April 07, 2002
In the not-too-distant past, employees would brag about the company they worked
for by talking about its perks and stock options. Casual days, pet days and
staff kitchens fully stocked with M&Ms and Starbucks were held in high
regard.
But what impresses workers has changed somewhat during this economic downtown.
Now, many former employees swap stories about the manner in which they were
told of their layoff or about the quality of their former companies' severance
packages.
Severance packages vary wildly from industry to industry, from executive to
line worker and from company to company, but knowing the details of yours
has never been more important. What was an abstract detail of their employment
policy has become vitally important for thousands in the Valley who have seen
their jobs evaporate in recent months.
Career experts suggest negotiating the details of your severance package on
your way in the door, not as it's hitting your backside on the way out, and
for asking for all you can from the company.
Job seekers should solidify their positions going in, said Dave deLuca, the
general manager in the Scottsdale office of Lee Hecht Harrison, a career management
firm.
"There has been so much rapid turnover that you have to cover yourself
going in."
Career managers suggest that during these tumultuous times, job seekers should
take a much closer look at a prospective employer's severance package, and
make it one of the factors for choosing whether to take a position.
The longtime severance standard hasn't changed for most companies: one week
of pay for each year of service with the company. Some packages include minimum
severance regardless of tenure, payment for unused vacation, extension of
health benefits, outplacement services and, in rare cases, use of company
office space during your next job search.
While blue-collar employees typically can't negotiate for any more than the
standard package the company offers, white-collar workers have it better.
In general, the higher the position, the more you can get in a severance package.
If you are in a position to negotiate, you should ask for more, experts say.
This is especially true if you are being asked to relocate, the company has
a shaky future or if there is any other factor that could make it difficult
for you to get your next job.When you are on the other side of the employment
cycle - laid off or fired - then you should carefully examine the details
of the severance package you agreed to when you were hired or any documents
the company is asking you to sign as you depart.
Receiving your severance package benefits is generally contingent upon you
signing a document that says you won't sue the company for further compensation.
Ask to review the severance document overnight at minimum, Vanyo said. In
most massive layoffs, the severance package is set and the company won't negotiate
for additional benefits. With individual terminations, an employee has a better
chance to get more than the standard package. It can be a delicate situation,
especially if you were fired for cause, but it can be worth the risk to ask
for more if it can aid you in your job search.