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Negotiations

Kristen Prinz
In Insights

Should You Try to Negotiate Your Severance?

Reading Time: 3 minutes

We have all been hearing a lot about tech layoffs and mass reductions in force (RIFs). Luckily, the labor market is tight, and unemployment is low. But even with the assurance that there are a lot of opportunities out there, being pushed out of a job can be difficult and uncertain.

Leaving a job with some cushion helps separated employees bridge a gap to new employment, minimizes the stress of unemployment, and engenders good will for an employer in the position of reducing staff. Whether you have been individually terminated or impacted by a mass layoff, if you were offered severance, you may wonder whether it is worth it to negotiate.

It Is Always Worth Trying to Negotiate.

Negotiating severance when you are part of a larger reduction in force has particular challenges when compared to one-off terminations. Mass reductions are challenging because there is typically (i) a legitimate business reason for the separation; (ii) a wide mix of employees impacted from different backgrounds, ages, and other protected classes, reducing the potential for discrimination claims; and (iii) a formula by which terminations were determined.

An individual termination is typically easier to negotiate, assuming that you do not have a history of performance issues or policy violations. Being the sole employee who is getting terminated can make it feel as though you are being improperly targeted. It may even appear to be the case to others who learn of your termination. In an individual termination, more questions can be raised about protected characteristics than in a mass layoff, possibly providing you a better negotiating position.

Should You Still Try to Negotiate? Yes.

Employers offer severance to gain certainty. They look to close the loop and ensure that liability is minimized. Including a “release of all claims” clause ensures that the signatory will not later bring legal action claiming some sort of discrimination or retaliation.

If you ask for more severance, most employers will say no because they want to maintain consistency. Then will not, however, typically reduce the severance offered. They want your signature. Therefore, you have little to lose is asking for more.

For What Should You Ask?

There are many options for how to best negotiate severance. Different approaches are appropriate in different situations. For example, you could ask for (i) additional weeks or months of severance pay, (ii) a pro-rata bonus at target, (iii) a lump-sum payment for outplacement or coaching support, (iv) additional COBRA coverage or a payment in lieu thereof, (v) forward vesting or a buy-out of equity, or (vi) some other form of compensation specific to your employer. Each severance negotiation should be tailored to your employment situation and particular needs and goals.

What Is Your Leverage?

When you attempt to negotiate your package, present the ask in a non-confrontational manner that implies leverage. To do so, you must know your leverage. Even in a mass reduction, you may have been targeted because of a protected characteristic or because of a report of improper or illegal conduct. If you don’t have that type of leverage, you may have relational leverage. If you have strong relationships with influential members of the leadership team, that can be a leverage point. Whatever your leverage, plan carefully how to use it in making the ask.

How Should You Ask?

Serious negotiations are best approached directly. However, your leverage and your ask should influence the mode of your negotiation. If you are using a protected characteristic, a written request will usually be more effective. Relational negotiations work better over the phone (it’s too easy to say “no” to a friend via email).

The worst that will happen is that your employer says, “No. Take it or leave it.” In that case, take what you can, negotiate non-monetary terms, and move forward.

Or, if you really were targeted, call a lawyer.

Kristen Prinz
In Insights

Ask If You Want It

Reading Time: 2 minutes

If you don’t ask, you probably won’t get it.

Wouldn’t it be great if hard work was always rewarded? If your employer recognized your efforts? If your boss kept a list of all your accomplishments and knew how big of a raise you really deserved? If your supervisor told you exactly what was necessary for you to get promoted?

While that world may sound ideal, the reality is often different. Your accomplishments may go unseen. Your effort may not achieve impact. Performance reviews are often subjective. And obscure promotion requirements give supervisors latitude to promote—or not to.

Over the years in my work, I’ve noticed more women than men get skittish about asking for what they want. They don’t want to be seen as aggressive, greedy, bitchy, or demanding. They think they might be asking for too much, even when it might actually not be enough. Asking is exhausting. The judgment is painful. The answer is “no” anyway.

Just last week, I advised a client to ask for better compensation metrics in her agreement. “Isn’t that a bit greedy?” she responded. Another woman asked me if I thought it would be fair to ask for more severance. “Fair” is in the eyes of the beholder. Would her male colleagues be so hesitant?

As the mother of two daughters, I’ve been cringing this year as my daughters unabashedly asked for every present they can think of for Christmas. My youngest lists off a litany of varied toys. A ukulele, American Girl dolls, a blender, a cash register, a squishmallow (yes, it’s a thing). My oldest tells everyone about the different types of spyware she would like to receive. My response is predictable: “That’s rude.” “Don’t ask for so much.” “Don’t say you want all of that.” They have no shame in asking for what they want.

I’m sure I had no shame in asking for what I wanted as a child. But somewhere along the way I learned that wanting and asking are frowned upon. Being labeled demanding or aggressive is not usually looked at as a compliment, especially for a woman. But most of us don’t work with or around mind-reading bosses or colleagues. Asking for what we want is a simple and clear way to set expectations. Asking does not guarantee getting. But not asking nearly always guarantees not getting. Wishing and hoping that your work will be recognized, or your efforts appreciated, rarely works.

Start thinking about what you want in the coming year, what you are willing to accept, and how you can get more of what you want. It will almost always start with an ask. Don’t let the fear of someone else’s perception stand in the way of you achieving your goals. Highlight what you have accomplished. And ask for what you want.

Kristen Prinz
In Insights

Top 3 Reasons Why Women are Great Negotiators

Reading Time: 2 minutes

I’m really sick of reading how women need to change our tone or our style or our language, or anything for that matter, in negotiations. In honor of International Women’s Day earlier this week, I want to call out a bogus stereotype, that women are bad negotiators. Some of the best negotiators I know are women. And, I would bet that almost any man who is married to a woman would agree. Growing up, my mom could always get want she wanted when negotiating with my dad. Often times, he was unaware that the negotiation was even happening. Generally speaking, women negotiate differently than men, but we still know how to hold our ground.

Here are my top three reasons why women are really the best negotiators:

  1. Women are the primary drivers of the consumer economy. Women know where to get what they need in the most efficient manner. Time is truly the most valuable asset and knowing how to get what you need, when you need it, is critical to a winning negotiation.
  1. Women are caregivers. Anyone who has ever negotiated with a toddler knows what it means to negotiate with terrorists. Women are out there doing it every day. And, while there are many men who have taken up caregiving responsibilities, women have been doing it a LOT longer. It’s pretty engrained.
  1. Women talk to their friends and show vulnerability. Knowledge is power in any negotiation. It’s pretty hard to really understand your negotiating position if you’re too proud to look a little naïve in front of your friends. While, as a culture, we seem to be slowly moving towards allowing men to show vulnerability, this is another area where women have been excelling for years.

Let’s stop pretending women aren’t good negotiators. And, let’s start pushing each other to bring all of that power to work. Every day.