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Good behavior during the severance negotiation process is important. Management decided it was best to pay her a severance and arrange some type of long-term transition so that everybody wins. After 9. She should have gotten at least two weeks of pay per year worked. We tried our best to negotiate a higher severance lump sum, but she was working at a private company that was on the decline. They refused.

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They said they were handcuffed by headquarters based in Europe. Step 5: The only logical next step was to get creative. This step is where many severance negotiators fail. Further, she would no longer have to interact with clients , which was the main stressor of her job. During this time, she would train other people to fully take over her job and get paid her FULL salary. After another week of deliberation, they said yes! They needed her to manage her large clients until they found capable replacements.

With the stress of dealing with clients gone, every day she went to work felt like a casual get together.

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The responsibility was on her managers and her trainees. She came home with a big smile every day for six months. When she finally left, she felt like she had won. The two guys who replaced her were making lots of mistakes and one of her employees left.

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Further, she requested no client interaction. In other words, her job would be to manage employees to do the work she used to do and leave with no responsibilities. Once again they agreed! So long as you create value, good things will happen. If you want to leave your job anyway, there is no downside in trying to negotiate a severance package.


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My severance package in covered all my living expenses through when my last deferred cash payment was paid. This 5-year runway allowed me to not worry about money and build Financial Samurai into what it is today. I first published the book in and have since expanded it to pages from pages in the 3rd edition thanks to tremendous reader feedback and successful case studies.

Loved reading this post — thank you! Question — do you have any experience or have you heard of anyone discussing a severance successfully at a company outside of the US e. Europe, Asia, Australia? I am a above average performer for my company Bay Area Tech Company where I have been for little under 2 years. How should I ask about severence given that it is not the norm in my company?

I bring a lot of value but I may be easily replaceable. Additionally, the module that I own is quickly becoming stagnant with the customers. Good thing is I have another job lined up. But I wanted to check how I can milk this cow while I can. The firm hit tough times about three years ago, around the same time I moved into middle management.

Every time, they offer a different position in the firm. I asked for severance this past year and was told I did not qualify because my position had not been eliminated others had been laid off around this time. I feel like as long as I am a decent performer, and there are open, similar roles at the firm, severance will not be on the table. Any ideas? And you can check out my book here. Excellent story; these are the things I learned: 1. Make sure you are adding crazy value and are yet being overlooked and underappreciated. Make sure you have leverage when asking for something.

Make sure that if you threaten to leave, the risks for your employer are greater. Make sure the severance allows for transition time because that is what the employer will ultimately need from you in order to extract your value for your replacement s. Great summary! Might have to add it to the post. Great to see people read and fully understand the points of the post.

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Yes, you need to provide more value than you Cost. As an entrepreneur or business owner this is obvious. You can call the negotiation whatever you want. The goal that we wanted was to make her come out with a win as there is no pension. The better your relationship, the less likely you will be unceremoniously thrown out. My wife just left her job of 6 years to work on expanding her run coaching business and spend more time with our 20 month old daughter. She is was a damn near idle candidate too.

She attempted to kind of plant the seed earlier that she was unhappy and wanted to spend more time with our daughter. They did make a variety of offers to keep her as far as working part time or remotely.

She ask if they could work out a severance package to help transition her out of her current position. The offered to let her work 3 days a week and pay full time if she would stay on for 8 weeks to bring someone else up to speed. By spending time kind of creating empathy and planting the seed that she wanted out it gave her company time to work on a mitigation plan. Either way it was fun trying to get a nice payout and we are thrilled to have her home with our daughter.

Glad your wife got something. And more important, so awesome she gets to spend more time with your daughter! We will regret nothing spending every day with him since birth. It has truly been a blessing!


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  5. Great story Sam. I feel as though both employee and employers are more pragmatic today, and the idea of how not to burn a bridge really changed. It sounds as though people who doubt employers will consider negotiated severance, lacks the confidence in their own value to their company. Excellent employees usually get excellent treatment. It would be completely irrational. Every single executive level person I have consulted has walked away with something significant. Nobody wants to burn bridges in this day and age.

    Two of my co-workers just requested a severance, within 6 months of each other, both were long term employees 20 years and 15 years and good performers. I could not believe my ears when they told me. Their advice, be courteous and not demanding, but do be assertive. The one that has been with the company for 20 years said she worked on this with the manager for a few months, finally indicating that if there is a lay-off, put her on the list.

    The manager who also happened to be my manager thanked her for making it an easier option for him. The second co-worker 15 years on the job requested to be released.