If you are facing redundancy, then the chances are that you have a lot of questions. How much money can I get? Who can I talk to? These are just two of the many things that may be on your mind. This blog post is designed to answer all your questions, explain what to expect in your redundancy package and give you some top tips for negotiating the very best deal with your employer.
What’s in a Redundancy Package?
A redundancy package commonly contains the following:
- notice pay
- severance pay (this should not be confused with redundancy pay)
- outplacement counselling to help you find your next role. This is particularly useful if you are struggling to find employment in this competitive job market. It can also provide an opportunity for career guidance and the chance to update your skills or qualifications.
- the opportunity to move into a new role with your existing employer or another company within their group of companies if it is available and you want to take up this option. This can be beneficial as you will not experience any gaps in employment, which could affect future career prospects.
- training and development opportunities. This can help you keep your skills up to date as well as providing a positive indication of future progression within the company if they offer this option.
- an exit package, which is designed to provide further financial support or benefits for those with families or dependents. These may include childcare vouchers, legal advice on redundancy pay, special discounts or offers for health insurance.
- references and letters of support to back up your skills and experience when you are looking for a new role. This is particularly useful if it includes client testimonials, which can help with future employment prospects as well as showcasing how effective you were at the job on a day to day basis.
Negotiating Your Redundancy Package
Firstly, you should always consider your financial situation before going into any negotiation. Make sure that you end up with enough money to cover living expenses for a set period of time, even if this is for between six months and one year. If it’s not possible then try and negotiate extra redundancy pay from the employer. However, make sure that this isn’t going to affect your overall payout as money is still tight.
Another top tip for negotiating a redundancy package is to keep your research up-to-date. Make sure you know what other people in similar roles and companies are receiving, as well as the market value of these benefits. It can also be useful to ask some questions about how much notice they need if they offer this option; make sure it
You should always consider how to go about negotiating a redundancy package and what you want from the negotiation process. The first thing that you need to do is contact someone in HR or your line manager, depending on levels of seniority – don’t just walk out and leave it for them to find! Then you’ll need to discuss exactly what redundancy package you are entitled to, and move on to negotiating.
Prepare yourself for the negotiation process by writing down all of your concerns about losing your job – this will help keep these top of mind during negotiations. You should also think carefully about how much money is enough for you personally as what one person considers enough, another might think of as being too little.
You should get yourself a copy of the company policy on redundancy packages to have with you during negotiations so that you can refer back to it if there is any disagreement between your manager and yourself over what payouts are. However, don’t expect this document to be handed out straight away.
You should also have a look at the redundancy package offered to other employees. This will give you an idea of what they tend to be in your company, and you can use this as a starting point when negotiating your own redundancy payout. This is particularly useful if there aren’t going to be any more people being made redundant from your company.
Finally, you should also think about whether your final redundancy package is actually going to be enough for you, and if not then try and negotiate some extra money with the employer – but don’t push your luck! If they refuse then just accept their final offer as it will still give you a good lump sum of cash at least.
If you’re facing redundancy and want to learn more about how to prepare for it, what extra support is available, and much more, visit our dedicated Redundancy Support page and visit our jobs board for new opportunities near you!