When it comes to parting ways with an employee, negotiating a severance agreement is a necessary step. It ensures a fair and mutually beneficial arrangement for both sides.
Understanding the process and preparing accordingly can help you arrive at the most favorable outcome.
Assess your situation
Before initiating any negotiations, carefully assess your situation. Consider your reasons for letting the employee and evaluate the terms of their contract. Understanding your position will help you make informed decisions during the negotiation process.
Research standard practices
Knowing what is typical for your field can provide you with valuable insights into what to expect and what might be negotiable. In an article for Forbes, the Young Entrepreneur Council highlights some common and invaluable practices. For example, employers should take it upon themselves to indicate what is negotiable and to include any relevant releases or waivers.
Initiate a constructive conversation
Approach the employee in question with a positive and constructive attitude. Express your gratitude for the productive experiences they created while working for the company. Maintaining a positive demeanor throughout the discussion can keep negotiations amicable and on track.
Document the agreement
Once both sides are in agreement regarding the terms, make sure to document everything in writing. Having a written agreement protects both sides and provides a reference point in case any issues arise in the future.
Negotiating a severance agreement is a delicate process that requires preparation, communication and a willingness to find common ground. By approaching the situation in good faith, both employer and employee can feel satisfied during a tense transitionary period.
