Key Takeaways
- "Non-negotiable" often isn't—ask anyway
- The negotiation window is short (days, not weeks)
- Document everything in writing
The Art of Severance Negotiation
"They said it's non-negotiable" — That's usually the opening position, not the final word
The Negotiation Success Rate
Research shows approximately 80% of employees who negotiate receive at least some improvement to their initial severance offer. Companies often start with a standard package expecting negotiation—"non-negotiable" is usually just the opening position.
What's Often Negotiable
| Component | Negotiability | Notes |
|---|---|---|
| Additional weeks of pay | High | Easiest ask; costs company little |
| Pro-rata bonus | Medium | If you "earned" it, argue for it |
| Stock vesting acceleration | Medium | Especially shares close to vesting |
| Extended health benefits | Medium | COBRA subsidy is common |
| Outplacement services upgrade | High | Costs them little |
| Non-compete scope reduction | High | They often don't care about enforcement |
| Reference letter language | High | Free for them to give |
| Announcement timing | High | Courtesy with no cost |
| Return of personal items | High | Reasonable request |
Your Leverage Factors
| Factor | More Leverage | Less Leverage |
|---|---|---|
| Layoff type | Individual | Mass layoff |
| Tenure | Long-tenured | Recent hire |
| Role | Specialized/senior | Easily replaceable |
| Knowledge | Hold key information | Fully documented |
| Legal exposure | Potential claims | Clean record |
| Relationships | Good rapport with leadership | Unknown |
How to Ask Without Burning Bridges
Don't say: "This offer is insulting and I deserve more."
Do say: "I appreciate the offer and want to find a way to make this work. Could we discuss [specific ask]?"
The script:
- Express appreciation for the offer
- Note your tenure/contributions
- Make a specific ask (not "more money" but "two additional weeks")
- Explain your reasoning briefly
- Ask if there's flexibility
Example:
"Thank you for putting this together. Given my five years here and the successful projects I led, I was hoping we could discuss adding two more weeks of severance and extending health coverage through the end of the year. Is there flexibility there?"
Mass Layoff Reality
In mass layoffs, your leverage is lower because:
- HR has already approved packages en masse
- Making exceptions creates precedent
- They've budgeted specific amounts
You can still ask, but expect less flexibility. Focus on non-monetary items (reference letters, equipment, timing).
Take It or Leave It
Employee who was told their package is non-negotiable
Setup
A client received a severance offer and was told it's the "standard package, take it or leave it." They're afraid to negotiate because they don't want to lose what's offered.
Client says:
“HR told me this is the standard package and it's non-negotiable. I'm scared if I push back, they'll rescind the whole thing. Is that possible? Should I just sign? It feels like they're giving me two weeks per year of service, which I think is okay, but I was hoping for more since I've been here seven years.”
Practice Objectives
- 1Reassure them that negotiating rarely results in offer rescission
- 2Help identify what specific items they could ask for
- 3Suggest professional, non-adversarial language
- 4Explain the difference between individual and mass layoff leverage