Layoff scenarios will vary based on how much lead time the organization has to prepare and how many resources it has to support the layoff. A small business with few employees will handle layoffs differently than a large, global company with thousands of affected employees. The following is a roadmap for managing the termination process in a large organization that has resources to provide support for laid off employees.
Once a layoff is announced, you will meet with HR to discuss the terms of your severance and your end date. Prepare for this meeting by reviewing your organization’s manual and any information about the severance policy. Some questions to consider include the following:
- How is severance pay calculated (typically by years of service, but additional compensation is sometimes given after long tenure, if little warning is given, or if many employees are affected)?
- What happens to bonuses or other compensation that haven’t been paid yet?
- What happens to retirement benefits that still need to vest?
- What health coverage and other benefits are available?
Ideally, you have a friend in HR who can explain the policies to you before the termination meeting so you know what to expect and what you want to negotiate if you need more than the policy dictates. Severance packages are negotiable.
During the termination meeting, listen closely and take notes. Fully understand the severance package being offered. Ask questions if anything is unclear. Agree to get terms of the severance package in writing.
Schedule a follow-up meeting for after you have a chance to review these items. Do not negotiate yet because you want to take time to prepare.
Remember that the organization probably regrets having to lay you off and wants to help you. Once you have received your offer, check what is customary for organizations similar in size and in your industry.
You might want to negotiate for some of the following items:
- More severance pay
- Longer health-care coverage
- Payout for bonuses accrued up to your end date
- Immediate vesting of your retirement benefits
- Outplacement or career coaching to help get your next job
- Payouts for unused vacation, sick, or personal days
- An end date further out (Your end date may determine things like bonus pay, retirement vesting, and even accrued vacation days, so the further out your end date, the more you might accrue.)
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