Severance Package 101: Avoid This Mistake for Maximum Success

The biggest mistake I see most of my clients make when negotiating their severance package is treating it as a one-time event. They expect a single conversation to deliver their desired outcome. However, to truly get the most out of the negotiation, it’s essential to recognize that it is a process—one that requires patience and strategic planning.

Before diving in, be sure to check out my original article on how to negotiate a severance package in Germany for a comprehensive guide and a detailed list of negotiable elements - Negotiating a Severance Package in Germany: What You Need to Know

What to Do Instead

Negotiating a severance package is rarely a straightforward, one-and-done conversation. Instead, it’s a dynamic, multi-step process. Think of it as a strategic game where you’re engaging in a back-and-forth dialogue with your employer. Each meeting or call is an opportunity to adjust your approach, prioritize your needs, and ultimately maximize the value of your severance package.

To approach this process effectively, start by prioritizing what you’ll negotiate based on the difficulty your employer might face in providing it. Begin with the most challenging asks for the company, such as a higher financial severance payment, extended notice period, or bonus. These should be your initial focus, as they are the foundation of your negotiation. Once progress is made on these larger items, shift to discussing benefits that hold significant value for you but are less of a hurdle for your employer, like a positive recommendation letter or keeping your work laptop. These smaller asks can often serve as the “cherry on top” to finalize the agreement.

For example, in your first negotiation meeting, you might focus on securing a financial package. Start high, knowing there will likely be counteroffers. Once the financial terms are settled, you can use follow-up discussions to negotiate other benefits, such as extended health insurance, outplacement services, or equipment retention. By pacing your requests strategically, you maintain leverage throughout the process and allow your employer to feel more comfortable agreeing to your terms.

For a full list of negotiable items to consider during the process, refer to my original article on negotiating severance packages in Germany-Negotiating a Severance Package in Germany: What You Need to Know

Why Is This Important?

Approaching severance negotiations as a process rather than a one-time event allows you to maintain leverage and build rapport with your employer over time. By breaking the negotiation into phases, you give yourself the flexibility to adapt based on the responses you receive. This approach also helps prevent you from overwhelming your employer with too many demands at once, increasing the likelihood that they will meet your key requests.

Furthermore, prioritizing larger, more challenging asks first ensures you secure the foundational aspects of your severance package before addressing smaller, easier wins. This method not only maximizes your chances of success but also helps both parties feel satisfied with the final agreement.

Key Takeaway

The key to success in severance negotiations is treating it as a process rather than a one-time event. Prioritize your asks strategically, starting with high-value items and reserving easier wins for later discussions. This approach allows you to adapt and maximize your outcome while ensuring your employer remains engaged and cooperative.

If you’re facing a severance negotiation and want personalized support, I’m here to help. Book a free call with me today to discuss your unique situation and how we can work together to secure the best possible outcome. Let’s strategize and turn your negotiation into a success!

Not yet ready to book a call, but would like to ask a question? Email or WhatsApp me.

Until our next breakthrough!

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