Hey friend,
That envelope from HR feels like a verdict. The severance offer inside seems generous at first glance—maybe two weeks' pay for every year of service. Your gut says "just sign it and move on." After all, they're being nice by offering anything at all, right?
Wrong.
That first offer? It's almost never their best offer. And the person who accepts it without negotiating could be walking away from thousands—sometimes tens of thousands—of dollars they absolutely deserve.
Here's what nobody tells you about severance: it's one of the few moments in your career where you actually have leverage (The Muse, March 2025). Your employer wants you to sign that release of claims. You want fair compensation. That's called negotiation territory.
💔 Real Talk
Meet Sarah, a marketing director with 12 years at a tech company. When the layoff hit, HR handed her a severance offer: 24 weeks of pay as a lump sum, plus three months of COBRA coverage.
She almost signed immediately. Instead, she paused for 48 hours and researched.
Here's what Sarah discovered about her situation:
✔️ Her company policy promised continued health coverage—not just COBRA
✔️ She was two months away from her stock options fully vesting
✔️ Her performance reviews showed she consistently exceeded expectations
✔️ The company had recently settled an age discrimination lawsuit
Armed with this knowledge, Sarah negotiated (The Muse, March 2025). She ended up with 36 weeks of pay, six months of employer-paid health coverage, accelerated vesting of her stock options, and outplacement services. Total additional value? $47,000.
The kicker? Her former employer didn't blink. They expected her to negotiate.
🧠 Data-Driven Reality
The numbers don't lie, and they're in your favor:
80% of employees who negotiate their severance packages successfully secure better terms (Watson & Norris, July 2025). Let that sink in. Four out of five people who simply ask get more. Yet most people never ask.
The baseline is low, but negotiable. Most companies offer one to two weeks of pay per year of service (Oyster HR, February 2025), but senior employees and those with leverage routinely secure much more. The formula isn't set in stone—it's a starting point for conversation.
Legal leverage matters. If you suspect discrimination, retaliation, harassment, or wrongful termination, you may have substantial leverage to negotiate a more generous package (Aegis Law Firm, April 2025). Companies will pay significantly more to avoid legal exposure.
The structure affects your taxes. A lump sum payment could push you into a higher tax bracket, while salary continuation spreads the tax burden over time (The Muse, March 2025). This decision alone can save you thousands.
The hidden truth: Companies often expect negotiation and build room for it into their initial proposals (Watson & Norris, July 2025). Your silence is their savings.
📋 Practical Strategy: Your Negotiation Playbook
Here's your step-by-step approach to maximizing your severance:
1. Hit the pause button (24-72 hours minimum)
Never sign anything immediately. You have 21 days minimum to review any severance agreement, or 45 days for group layoffs (Watson & Norris, July 2025). Use this time strategically. The person who signs in the conference room leaves money on the table.
2. Audit your leverage points
Review these critical documents before negotiating:
Your employment contract (look for severance clauses)
Company handbook (check severance policies)
Performance reviews (document your value)
California requires final wages including unused vacation regardless of severance (Aegis Law Firm, April 2025)
3. Calculate your real worth
Focus on what benefits you most rather than just asking for more money (The Muse, March 2025):
Extended health benefits (often cheaper for companies than cash)
Accelerated stock vesting (if you're close to a milestone)
Outplacement services (resume help, interview coaching)
Neutral reference letters
Non-compete clause modifications
4. Frame it as a win-win
"Emphasize long-term benefits for both sides, such as agreeing to a non-disparagement clause or offering to assist with a smooth transition in exchange for better terms" (The Muse, March 2025). You're not being greedy—you're being professional.
5. Use the silence technique
After making your counteroffer, stop talking. Let them respond. The silence technique is your secret weapon in negotiations (Watson & Norris, July 2025).
6. Get everything in writing
Verbal promises evaporate. Every agreed-upon benefit, payout, and condition must be documented in your final agreement.
🎯 Weekly Challenge: The 60-Minute Severance Audit
This week, spend 60 minutes building your negotiation foundation:
Minutes 0-15: Gather your employment contract, offer letter, and employee handbook. Highlight any mentions of severance.
Minutes 15-30: List your leverage points:
Years of service
Recent accomplishments
Potential legal claims (age, discrimination, WARN Act violations)
Specialized knowledge
Minutes 30-45: Research comparable severance packages in your industry and role level.
Minutes 45-60: Draft your initial counteroffer email (don't send yet—just prepare).
Bonus: If you already have a severance offer, schedule a consultation with an employment lawyer this week (many offer free initial reviews).
🧰 Resources
Department of Labor COBRA Information - Understand your health insurance continuation rights
HealthCare.gov Unemployment Coverage Options - Compare COBRA vs. Marketplace insurance costs
LoftLegal Severance Review Services - Expert attorney review within 2 business days
The Muse Severance Negotiation Guide - Complete step-by-step negotiation framework
Watson & Norris Severance FAQ - Common negotiation questions answered by employment lawyers
🔥 Fuel for the Week
— Edward Hones, Employment Lawyer (The Muse, March 2025)
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🌟 You didn't lose your job—you gained negotiating power.
That severance package sitting in front of you? It's not charity. It's compensation you earned through years of dedication, late nights, and delivered results. Your employer knows this. That's why they're offering it.
But here's what they're counting on: that you won't ask for what you deserve. That you'll feel too defeated, too grateful, or too intimidated to negotiate.
Don't let them be right.
Every dollar you negotiate is a dollar that extends your runway while you find something better. Every week of health coverage you secure is peace of mind for your family. Every benefit you add to your package is leverage for your future.
The person across the table from you? They negotiate for a living. This is your one shot to level the playing field.
So take a breath. Review your offer. Calculate your worth. And then—confidently, professionally, strategically—ask for what you deserve.
You've got this,
Win
Fellow layoff survivor, creator of Let Go Weekly
P.S. Remember: 80% of people who negotiate get better terms. Be in that 80%. Your future self will thank you.