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The Secret to Negotiating Severance IS....
Understanding leverage and plain old human nature. Allow me to explain.
Is it Better to be Feared or Loved When Negotiating?
In the Prince, Machiavelli famously declared, "Better to be feared than loved, if you cannot be both."
Pennsylvania Employment Lawyers' Guide to Severance Negotiations
In our experience, there does not exist a single, perfect way to approach and succeed in every severance negotiation. Why?
Well, Betty Crocker has never written a recipe for how to negotiate severance - nor is there one that can be followed with guarantee of the perfect severance cake.
Albert Einstein never discovered a perfect mathematical equation for "solving" negotiations that may be applied apply with a certain predictable mathematical outcome.
Even so, there exist certain common denominators and ingredients in most severance negotiations in which we have been involved (i.e. in which the departing employee hired us to assist in sweetening and concluding the deal).
So, that is a good place to start - "do I need or should I hire an attorney?"
First Consideration: When Should I Hire a Lawyer to Help Me Negotiate Severance?
★ if an employee has engaged in prolonged negotiations before obtaining counsel, the attorney's chances are diminished. THINK: Positions Entrenched. So, unless you feel you have a close relationship with the person in the company who can pull the purse strings, negotiation through HR and the like is usually counterproductive. Their common response to whatever you say is often: "We offered you our standard package and it is non-negotiable," or "we considered [whatever you are suggesting should be taken into account] when we determined the amount of your severance.";
★ lawyers deal with civil/human rights, true, but in the end the legal world is a matter of commerce. Hence, when attorneys negotiate, emotions are removed. We seek certainty via finality (i.e. a signed Separation Agreement), and we know how to achieve that end;
★ for the foregoing reasons, it is a common view that it is best to hire an attorney right after you receive the company's proposal, as opposed to after you have gone back and forth and been told, "For the last time, this is it!"
Second Consideration: What Type of Leverage Do I Have?
★ Attorneys will sometimes recommend that their client walk away from a paltry or even substantial severance offer if he/she has adequate leverage; absent leverage, a walkaway may not be in your best interest;
★ what is "adequate leverage?" Facts that strongly suggest the employee's termination was unlawful or that he/she is owed substantial wages/commissions. Truth is, sad to say, that your diligent and faithful past services (for your now former employer) neither create nor equate to "adequate leverage." Hard to accept, but undoubtedly true...The relationship is over, and you are down to brass tacks;
★ how does one know if he/she has "adequate leverage" or, more succinctly, how does an attorney know if you have a strong legal claim for discrimination, etc. or unpaid wages? Only an experienced employment lawyer can answer such questions, and he/she can do so only after sitting down with you to go over the circumstances of your employment in detail;
★ if you have "adequate leverage," you hold the cards. Now all you need is a lawyer that can play'em -and not over play them. Old proverb: "Pigs get fed, hogs get slaughtered."
Remember, the goal is finality, not decisive victory. We believe Mr. Getty would agree.
What Should I Look for When Hiring a Lawyer to Negotiate My Severance Package?
Leverage or not, here are some keys to achieving positive results in severance negotiations:
◆ Your lawyer must KNOW employment law;
◆ Your lawyer must have a reputation for honesty;
◆ Your lawyer must be someone who has sued companies, and won;
◆ Your lawyer has to be respected and must respect other lawyers;
◆ Your lawyer must understand the law of commerce and the Rule of the Hog;
◆ Your lawyer must play well with others.
The final point may be the key to success. After all, isn't it safe to say that people who like their negotiating counterpart will be more given to generosity? It follows, then that if the lawyer with whom we are negotiating likes us, we have a better chance of achieving a positive result when negotiating severance for our client.
Understanding leverage and plain old human nature. Allow me to explain.
Is it Better to be Feared or Loved When Negotiating?
In the Prince, Machiavelli famously declared, "Better to be feared than loved, if you cannot be both."
 |
| Gentle Outside - Steely Inside |
Napoleon uttered famous the expression "one must rule with an iron fist in a velvet glove."
J. Paul Getty said, “You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.”
J. Paul Getty said, “You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.”
 |
| This Man Knows |
In his book, "Getting More" Stuart Diamond, currently a Professor at the Wharton School and formerly a Pulitzer Prize–winning reporter for the New York Times - and a man who has perhaps studied negotiating tactics more than anyone alive - concludes that the outcome of any negotiation is based 90% on the people/personalities involved, and only 10% on the substance of the subject(s) of the negotiations.
These seem to be sensible maxims!
NOTE: This Post is directed to employees who do not have a right to severance pursuant to a contract or law. If you are part of the great majority of employees who do not have a right to severance, please read on.
These seem to be sensible maxims!
NOTE: This Post is directed to employees who do not have a right to severance pursuant to a contract or law. If you are part of the great majority of employees who do not have a right to severance, please read on.
HERE ARE SOME OTHER LINKS YOU MAY FIND WORTHWHILE:
Severance and Pennsylvania Unemployment - Doing the Math
Voluntary Severance Offers - How to Negotiate and What to
Look for When a Company Offers Severance
Pennsylvania Employment Lawyers' Guide to Severance Negotiations
In our experience, there does not exist a single, perfect way to approach and succeed in every severance negotiation. Why?
 |
| No Recipe |
Well, Betty Crocker has never written a recipe for how to negotiate severance - nor is there one that can be followed with guarantee of the perfect severance cake.
 |
| No Formula |
Even so, there exist certain common denominators and ingredients in most severance negotiations in which we have been involved (i.e. in which the departing employee hired us to assist in sweetening and concluding the deal).
So, that is a good place to start - "do I need or should I hire an attorney?"
First Consideration: When Should I Hire a Lawyer to Help Me Negotiate Severance?
★ if an employee has engaged in prolonged negotiations before obtaining counsel, the attorney's chances are diminished. THINK: Positions Entrenched. So, unless you feel you have a close relationship with the person in the company who can pull the purse strings, negotiation through HR and the like is usually counterproductive. Their common response to whatever you say is often: "We offered you our standard package and it is non-negotiable," or "we considered [whatever you are suggesting should be taken into account] when we determined the amount of your severance.";
★ lawyers deal with civil/human rights, true, but in the end the legal world is a matter of commerce. Hence, when attorneys negotiate, emotions are removed. We seek certainty via finality (i.e. a signed Separation Agreement), and we know how to achieve that end;
★ for the foregoing reasons, it is a common view that it is best to hire an attorney right after you receive the company's proposal, as opposed to after you have gone back and forth and been told, "For the last time, this is it!"
 |
| It Worked For Mr. Getty |
Second Consideration: What Type of Leverage Do I Have?
★ Attorneys will sometimes recommend that their client walk away from a paltry or even substantial severance offer if he/she has adequate leverage; absent leverage, a walkaway may not be in your best interest;
★ what is "adequate leverage?" Facts that strongly suggest the employee's termination was unlawful or that he/she is owed substantial wages/commissions. Truth is, sad to say, that your diligent and faithful past services (for your now former employer) neither create nor equate to "adequate leverage." Hard to accept, but undoubtedly true...The relationship is over, and you are down to brass tacks;
★ how does one know if he/she has "adequate leverage" or, more succinctly, how does an attorney know if you have a strong legal claim for discrimination, etc. or unpaid wages? Only an experienced employment lawyer can answer such questions, and he/she can do so only after sitting down with you to go over the circumstances of your employment in detail;
★ if you have "adequate leverage," you hold the cards. Now all you need is a lawyer that can play'em -and not over play them. Old proverb: "Pigs get fed, hogs get slaughtered."
Remember, the goal is finality, not decisive victory. We believe Mr. Getty would agree.
HERE ARE SOME MORE ARTICLES
YOU MAY FIND WORTHWHILE:
What is an ILLEGAL Hostile Work
Environment? Workplace Bullying Alone is Not Illegal in Pennsylvania
What is an ILLEGAL Hostile Work
Environment? Workplace Bullying Alone is Not Illegal in Pennsylvania
Employee Complaints and Retaliation - What is Legal and
What is Illegal
FILING A CHARGE OF DISCRIMINATION IN PENNSYLVANIA - A FEW
TIPS FROM CONTINGENT FEE LAWYERS
United States Employment and Discrimination Laws - An
Overview by Pennsylvania Employment Lawyer
What Should I Look for When Hiring a Lawyer to Negotiate My Severance Package?
◆ Your lawyer must KNOW employment law;
◆ Your lawyer must have a reputation for honesty;
◆ Your lawyer must be someone who has sued companies, and won;
◆ Your lawyer has to be respected and must respect other lawyers;
◆ Your lawyer must understand the law of commerce and the Rule of the Hog;
◆ Your lawyer must play well with others.
The final point may be the key to success. After all, isn't it safe to say that people who like their negotiating counterpart will be more given to generosity? It follows, then that if the lawyer with whom we are negotiating likes us, we have a better chance of achieving a positive result when negotiating severance for our client.
 |
| Fear > Love |
Of course, having a reputation as a ferocious litigator doesn't hurt either. Machiavelli said so.
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