Negotiating Your Severance

In this week’s newsletter:

• 💸 Negotiating Your Severance - How to Win on the Way Out!

• 🎧 Listen While You Read - “No Bad Days”, Macklemore

• 🛠️ Job Seeker Toolkit - Parallel, ATS Resume Preview

• 📈 Pulse of the Job Market - April’s Job Data Summarized

• 📚 Other Resources - Articles, Community Posts, & more!

💸 Negotiating Your Severance - How to Win on the Way Out!

Salary negotiations tend to get all of the attention, but did you know that severances are negotiable as well? The severance package is a nifty document outlining the financial terms of your adieu, and there’s typically 21 days to consider what is being offered. These packages vary greatly from one company to the next, and not all employers offer one on your way out. Also, if there’s a large layoff, negotiation wiggle room may not be the same as in a smaller company.

So, before you tip your hat and head for the exit, let's talk about sweetening that severance pot. In the game of job transitions, everyone should leave the table feeling like a winner.

What can I negotiate?

1. Severance Pay

2. Insurance Coverage

3. Equity/Stock Vesting

4. Termination Date

5. Company Perks

6. Outplacement

1. Severance Pay

Typically, the severance fairy leaves one to two weeks' pay for each year of service - but hey, who's to say we can't dream bigger?

If your job's departure is causing more than just emotional turbulence and spilling over into 'economic hardship' territory, it's time for a heart-to-heart with your soon-to-be ex-employer. Try and shoot for the stars - or at least, for a month's pay for every year you've been loyal.

Now, if you're from the managerial or executive deck, your severance ship might come in with a little extra loot. The C-suite crowd? They might sail off into the sunset with enough severance pay to make a pirate envious - sometimes more than a year's worth.

2. Insurance Coverage

Health, life, and disability insurance aren't just puzzle pieces in the board game of employment - they're your safety net as you leap into the unknown.

The Consolidated Omnibus Budget Reconciliation Act (or COBRA, if you want to sound a bit more James Bond). This nifty piece of legislation lets you hang onto your employer's health insurance policy like a trusty sidekick for 18 months or longer.

The catch? Well, you're picking up the tab on this one. Without your employer chipping in, the premiums might feel a tad heavier in your pocket. But don't fret - it's negotiation time again.

Can your employer cover the health insurance till you embark on your next adventure? Will they extend a hand for life and disability insurance, at least for a month, before letting you walk the insurance tightrope alone?

3. Equity/Stock Vesting Schedule

For stock options or any type of equity compensation, make sure you understand the vesting schedule. If you're close to a vesting cliff, it might be worth negotiating to accelerate the vesting.

4. Termination Date

Considering a conversation about adjusting your termination date? It's certainly a possibility, though it's a discussion colored by factors like your company's policies, the circumstances surrounding the layoff, and the company's receptiveness to such talks. If you're managing ongoing projects or if your continued involvement might ease the transition period, negotiating for a later termination date could be a feasible option. So, don't hesitate to voice your proposal—steer the dialogue in a direction that benefits both you and your employer."

5. Company Perks

It's time to play 'keep or return.' That company laptop? Might be yours for keeps. Just make sure to get an official 'yes' in writing. Other work perks, like cruising in the company car or flexing at the company-sponsored gym, could possibly be extended. So, flex those negotiation muscles and see where it gets you!

6. Outplacement

This one is huge if your employer provides this. Outplacement includes services that help a terminated employee with the transition to a new job, which can include resume writing, job search, and job coaching. Many companies foot the bill for this as it is a mutually beneficial offering.

Offering outplacement support for employees helps companies maintain a positive corporate image, decrease the risk of litigation, and improve employee morale. So take advantage of this!

Examples of outplacement companies are:

• GetFive

• VelvetJobs

🎧 Listen While You Read

🛠️ Job Seeker Toolkit

Parallel

https://www.useparallel.com

Skip the blackbox & instantly stand out by applying directly to teams at top startups.

ATS Resume Preview

https://www.theladders.com/ats-resume-parser

An applicant tracking system (ATS) is a software application that enables the electronic handling of recruitment and hiring needs. Upload your resume to see how your resume looks to hiring managers when processed by an ATS.

📈 Pulse of the Job Market

Here are some key job market stats and trends

• Technology companies added 18,795 workers in April, the largest number since August 2022

• Technology jobs throughout the economy declined by 99,000 positions even as employer job postings passed 300,000

• The unemployment rate for tech occupations inched up to 2.3% in April from 2.2% in March

• Computer and IT managers are among the most highly paid positions in the US, earning an average $173,670 across all industries and occupations

• Employers listed more than 300,000 job postings for tech positions in April, signaling demand for tech talent continues to hold up

• The number of tech job postings that specify remote work or hybrid work arrangements as an option continued to trend upward in April

• Among metropolitan markets, Washington, DC, New York City, Dallas, Los Angeles, and Chicago had the highest volumes of tech job postings

• Overall, the US economy added 236,000 jobs in March

• There are far more tech job openings than people to fill them

📚 Other Resources

Articles, Community Posts, Tools, & more!

• 📔 Front End Interview Handbook - Free front end interview preparation materials for busy engineers (guide) [link]

• 🌐 What is your experience trying to get a new job in SWE in 2023? (levels.fyi community) [link]

• 📰 Why AI Will Open Up New Career Opportunities For Young… (article) [link]

• 📰 Most remote workers say they'd take a pay cut… (article) [link]

• 👾 “I got a rejection letter… I asked CGPT to generate a snarky reply.” (Reddit) [link]