Starting a new job is exciting. There is nothing but possibility. You have yet to learn all the little annoyances that will come with your new role. And, you have high aspirations for all you will accomplish.
All of the things that make starting a new job exciting often keep executives from asking for a severance provision in their employment agreement or offer letter. But, taking on a new job is also a big risk, especially if you are leaving a long term position for the job. The fact is it is not just employees who put their best foot forward during the interview stage. Employers also try to sell their positive and supportive working environment. Everyone is wearing a little cover-up to the pre-employment dance. It never hurts to have an exit strategy.
The fact is everyone typically likes each other during the offer negotiations. And the best time to ask for what you want is when the other side still likes you. Negotiations on the way out usually involve threats and posturing. Negotiations on the way in usually involve pragmatic requests and "win-win" proposals. The deciding factor is usually how you ask. Here are some tips:
1. Be enthusiastic about the job. Don't ask for severance assuming that your employment will be terminated within the first year. Instead, focus on the fact that, while you are really excited about the opportunity, you are leaving a long term position and want to make sure that your family has some cushion if the company changes direction. Or, if it is an early stage company, make sure you emphasize the fact that you believe the company will be extremely successful and will likely be sold in the short term.
2. Be Realistic. Don't ask for a one-year severance position if that amount of severance is inconsistent with your role or level. If you want a higher severance, look for other factors that would support your request such as (i) taking a risk with a young company, (ii) the company is positioned for sale, or (iii) the company is requiring a non-compete.
3. Write down what you plan to ask for and practice asking. Even the most persuasive people need to prepare for negotiations. Be prepared with your request, the basis for your request and some counter-arguments to respond to denials.
4. Even if severance is not a deal breaker, don't accept the first no. Most employers will initially say that they don't typically include severance in their offer letters. That is fine, but you are not typical. Don't just immediately settle for no. Explain why you are not typical and ask for reconsideration.
Use your initial negotiation to demonstrate your skills and show your potential employer that you have the skills that they need. This way, even if the final answer is NO, you have at least shown your employer what you are bringing to the table.
