The following story is not my brother-in-law’s personal experience, but it is still typical of the workplace.
George didn’t see it coming. It was Friday afternoon when they called him into the boss’s office and said, “Business has been bad and we hate to do this, but we’re going to have to fire you. We’ve arranged to give you good references and two weeks’ wages. I wish we could do more, but we just can’t. We wish you the best of luck.
George got dizzy and went into “pink slip shock”. He at least could have tried to negotiate a better settlement, but he was disoriented when he went to his house to break the news to his wife.
Pink slip shock can cost you thousands of dollars. If you are in this situation, give yourself time to think and negotiate. He says, “Well, this is sudden and puts me in very difficult circumstances. Let me take what you said home and think about it, and I’ll talk to you again when I’m not in shock.”
If you think getting fired is hard on you, know that it’s hard on your employer, too. Nobody really likes to let people go, and if you don’t care about yourself, you can benefit from their discomfort and guilt.
I call this article “don’t let go when they let you go” because most people do just that: they accept it and walk away. Oh, they may get angry, they may threaten to sue or “go by mail,” but after the initial rush of anger, they usually let it go.
Now, I am not advocating the other extreme either. Threatening to sue and writing to your congressman usually won’t help much. By giving yourself a break, you will be able to take a rational approach to negotiating compensation.
Here are four things to consider.
First of all, you should always ask for more severance pay. Some rules are: payment of one to two weeks for each year with the company; mid-level executives can apply for up to six months; senior executives can expect sizable packages. It is important to itemize accrued vacation and other benefits that are already due to you in a severance situation.
Second, you should ask for help looking for a job. This is called “relocation.” The “placement” part of the word is not helpful because outplacement companies do not “place” anyone. They are job search advisors and can help you find a new job faster than you would on your own. Full executive relocation programs can generate 10-15% of annual profits. The low level includes some group job search training seminars and help with your resume.
Third, you should look for any “value added” activities you can do for the company for which you might be compensated. If you’re in sales and have some outstanding accounts, you can negotiate commissions on them if you help transition accounts. If you’re in the middle of a project that could affect the company’s bottom line, you may be given additional compensation for completing parts of it before you leave.
Lastly, negotiate a good letter of recommendation and references. If your boss really respects you and your work, you can ask them to specifically recommend you to others in the industry. A letter from him to his friends is more powerful than a resume from you.
The key to all of this is taking the time to discuss and negotiate the terms of the settlement. You can’t do that on the day you get a pink note. But you can be calm enough not to accept compensation right away. Tell them you want to think about it and you’ll come back. The extra time and thought will add up to a much more comfortable financial situation for you in the long run.
