The Truth About Severance Packages: Why Your Company is Lying to You (Especially if You’re an Executive)
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She’s a high-level executive at a Fortune 500 life sciences company. Decades of experience. Strategic thinker. The kind of leader who could walk into any boardroom and command respect.
And then she got laid off.
Now, layoffs happen. Even to incredibly talented people. The economy shifts, companies restructure, priorities change. I get it. But here’s what happened next that made me realize I needed to write this blog post – and film this entire YouTube video breaking down everything you need to know about severance negotiations.
Her company handed her a severance package. Standard stuff, they said. “We’ve partnered with XYZ Outplacement Services to provide you with resume writing, LinkedIn optimization, career coaching – everything you need for your transition.”
Sounds great, right? They’re really taking care of her.
Except she’d done her homework. She knew that corporate outplacement vendors – the ones companies contract with to “support” laid-off employees – are almost universally terrible. Especially for executives.
So instead of accepting what they offered, she negotiated. She asked them to redirect the money they were going to spend on that useless vendor toward working with a specialist of her choice. Someone who actually understood executive-level positioning and could craft materials worthy of her experience.
And you know what? They said yes.
She came to me, used her severance package to invest in proper executive resume and LinkedIn services, and now she’s back in the game with materials that actually represent who she is.
But here’s the kicker: Most people don’t know they can do this.
Most people think their severance package is set in stone. Non-negotiable. Take it or leave it.
And that’s exactly what companies want you to think.
The Big Lie: “This Severance Package is Non-Negotiable”
Let me be very clear about something: Your severance package is negotiable.
I don’t care what HR told you. I don’t care if they handed you a folder and said “this is standard for everyone at your level.” I don’t care if they made it sound like you’d be asking for something outrageous if you tried to negotiate.
It’s negotiable.
Here’s how the traditional severance process works:
You get laid off. They sit you down – sometimes it’s your manager, sometimes it’s HR, sometimes it’s both. They express their regret about the situation. They hand you a severance agreement that says something like: “We’ll give you 12 weeks of pay, continuation of benefits for X months, and access to our outplacement services partner. In exchange, you sign this release agreeing not to sue us.”
They present it like a done deal. Like this is just how things work. Sign here, and you can move on with your life.
But here’s what they’re NOT telling you: Severance agreements get modified all the time.
Why? Because every single person represents a different level of risk to the company.
Understanding Your Risk Profile (And Why It Matters)
Let me break down how companies actually think about severance.
They’re not just paying you for your years of service. They’re not just being generous. They’re buying something: protection from potential legal action, your silence about what happened, assurance you won’t immediately walk your client relationships to a competitor.
They’re buying their peace of mind.
And the amount they’re willing to pay for that peace of mind depends entirely on how much risk you represent.
Let’s say you’re 37 years old. You’re young, you’ll bounce back quickly, you’re probably not going to sue them for age discrimination. The company sleeps fine at night offering you their standard package.
But if you’re 57? Different story.
Now they’re thinking: “This person could potentially claim age discrimination. They might have a case. Even if we’d win in court, do we want to deal with that? Do we want the publicity? The legal fees? The hassle?”
Suddenly, paying you more money upfront to sign that release looks like a very smart investment.
Or maybe you worked directly with major clients. You have their contact information, their trust, their business insights. The company knows you could walk that entire relationship to their biggest competitor. They can’t stop you – those clients can work with whoever they want – but they’d sure like to make it worth your while to… take some time before you do that.
That’s leverage.
Maybe you were part of a reorganization that looked suspiciously like it targeted older workers, or women, or people who’d recently taken medical leave. You’re not threatening legal action – you don’t have to – but everyone in that room knows what the optics are.
That’s leverage.
Maybe you signed a non-compete agreement, but you’re in California where those aren’t enforceable. Or maybe you’re planning to move to a state where they’re not enforceable. The company knows their non-compete is basically worthless, but they’d prefer you didn’t test that theory immediately.
That’s leverage.
Every person has a different risk profile. And companies absolutely adjust severance packages based on that profile.
When they tell you it’s “non-negotiable,” what they really mean is: “We’re hoping you don’t realize it’s negotiable, because if you don’t push back, we save money.”
The Outplacement Services Scam
Now let’s talk about those “generous” outplacement services they’re offering you.
Corporate outplacement vendors – the ones your company contracts with to provide resume writing, career coaching, and job search support – are almost universally terrible.
I’m not being dramatic. I’m not exaggerating. I have had client after client after client come to me AFTER using their company’s outplacement service, and every single one tells me the same thing:
“I spent three months with them and got nothing useful.”
Why are these services so bad?
Reason #1: They’re bulk contracts
Your company isn’t paying for premium, white-glove service. They’re paying for the cheapest option that lets them check the box of “we provided career transition support.”
The vendor is incentivized to process as many people as possible, as quickly as possible, with the least amount of actual expertise required. It’s a volume game.
Reason #2: They use templates
These companies have templates for everything. Template resumes. Template LinkedIn profiles. Template cover letters. Template interview prep advice.
One-size-fits-all approaches that might work okay for entry-level or mid-level positions, but completely fall apart when you’re trying to position an executive.
Reason #3: The people writing your resume aren’t specialists
Here’s a dirty little secret: The person writing your resume at these outplacement firms is often someone who has no business writing executive resumes.
They’re not specialists in your industry. They’re not deeply connected to what’s happening in the executive job market. They don’t understand how to craft a narrative that resonates with executive recruiters and hiring managers.
They’re following a playbook. Filling in templates. Checking boxes.
Reason #4: They don’t understand executive positioning
The biggest problem with corporate outplacement vendors – especially for executives – is that they fundamentally don’t understand how executive hiring works.
Executive hiring is not the same as applying for a mid-level role. You’re not just listing your job duties and hoping someone notices. You’re crafting a strategic narrative about your leadership philosophy, your ability to drive transformation, your track record of delivering results at scale.
Executive resumes need to speak the language of the boardroom. They need to position you as someone who operates at a strategic level, not just someone who managed teams and hit targets.
And outplacement vendors? They don’t get that.
I had one client – a VP of Operations – who got a resume from her company’s outplacement vendor that looked like it was written for a mid-level manager. No strategic accomplishments. No board-level language. No executive presence whatsoever.
She sent out 50 applications with that resume. Radio silence.
We rewrote it together, and within two weeks she had three active conversations with recruiters.
That’s the difference between a templated, check-the-box resume and one that’s actually crafted by someone who knows what they’re doing.
So What Do You Do Instead?
Here’s the strategy that my Fortune 500 client used – and that I want you to use if you’re in this situation.
Step 1: Don’t Sign Immediately
I know they’re pressuring you. I know they’re making it seem like you need to make a decision right now.
But here’s the truth: You almost always have time.
In many states, if you’re over 40, you legally have to be given at least 21 days to review a severance agreement (and 45 days if it’s a group layoff). Even if you’re younger, you can usually negotiate for time to review.
Take the agreement home. Read it carefully. Better yet, have an employment lawyer look at it.
Yes, that costs money upfront – usually somewhere between $500-$1,500 for a consultation and review. But a good employment lawyer can often help you negotiate thousands of dollars more in severance. It’s worth it.
Step 2: Understand Your Leverage
Be honest with yourself about what risk you represent to the company.
Are you over 40, and especially over 50? That’s age discrimination territory.
Do you have valuable client relationships or proprietary knowledge? That’s competitive risk.
Were there any questionable circumstances around your termination – anything that could look bad for the company if it came to light? That’s reputational risk.
Do you have a non-compete that may not be enforceable? That’s uncertainty they’d like to eliminate.
You don’t walk into the negotiation and say “I’m going to sue you if you don’t pay me more.” That’s aggressive and counterproductive and honestly, it usually backfires.
But you do walk in understanding what you bring to the table, and you negotiate accordingly.
Step 3: Ask for What You Actually Need
This is the key move, and this is specifically about those outplacement services.
Let’s say your severance package includes:
- 12 weeks of severance pay
- Benefits continuation for 3 months
- Access to their outplacement services partner
Here’s what you say:
“I appreciate the outplacement services that are included in this package. However, given my level and the specific nature of my career transition needs, I’d like to request that instead of the standard outplacement package, you allocate $5,000 for executive resume writing, LinkedIn optimization, and personal branding services with a specialist of my choosing.”
You’re not asking for more money out of thin air. You’re asking them to redirect the money they were already planning to spend on a useless vendor toward something that will actually help you.
And here’s the beautiful part: They were probably going to spend that much – or more – on the outplacement vendor anyway. Corporate outplacement contracts are expensive. So from the company’s perspective, it’s cost-neutral or even cheaper. They’re just writing the check to a different provider.
But from your perspective? It’s life-changing.
Because now you can work with someone who actually knows what they’re doing. Someone who specializes in executive positioning. Someone who will craft materials that are worthy of the roles you’re pursuing.
Step 4: Negotiate the Cash Severance Too
Don’t just focus on the outplacement services. If you have leverage, ask for more severance pay as well.
How much should you ask for? That depends on your situation, your leverage, and the company’s standard practices.
But a general rule of thumb: If you have real leverage – age factors, sensitive knowledge, questionable circumstances – you can often negotiate 20-50% more than their initial offer.
So if they offered you 12 weeks of pay, ask for 16-18 weeks.
If they offered you 6 months, ask for 8-9 months.
Frame it professionally: “Given my [years of service / unique circumstances / the nature of my role], I’d like to request an additional [X weeks/months] of severance pay.”
You’re not being greedy. You’re not being unreasonable. You’re simply making it clear that you understand your value and your position.
Step 5: Get Everything in Writing
This is critical: Once you’ve negotiated, make sure every single thing you agreed to is in the final severance agreement.
Don’t accept verbal promises. Don’t accept “we’ll handle that separately” or “we’ll send you a separate agreement for the resume services.”
Everything. In. Writing.
The enhanced severance pay, the specific dollar amount allocated for professional services, any other modifications you negotiated – all of it needs to be in the signed agreement.
And then – and only then – you sign.
What Happens After You Negotiate
Let’s say you successfully negotiate. You get your enhanced severance package, and you get that $5,000 (or whatever amount you negotiated) allocated for professional resume and branding services with a specialist of your choice.
Now what?
Now you invest in working with someone who actually specializes in executive resumes and LinkedIn optimization.
Not someone who uses templates. Not someone who’s going to churn out a generic document. Someone who will sit down with you, understand your career story, figure out what makes you unique, and craft materials that position you as the strategic, high-value executive you are.
That’s what my client did. And you know what? It was worth every penny.
Because when you’re applying for six-figure or seven-figure roles, you cannot afford to have mediocre materials representing you.
The hiring managers and recruiters at that level can spot a template from a mile away. They can tell when someone just plugged their information into an AI tool or worked with a low-tier vendor. And it immediately disqualifies you.
But when your resume tells a compelling story? When your LinkedIn profile positions you as a thought leader? When every word is strategically chosen to showcase your value?
That’s when doors start opening.
A Real Talk About Age and Leverage
I want to address something directly, because it came up with my client and it comes up with many of my executive clients: age discrimination is real.
If you’re over 50 and you just got laid off, there’s a very real possibility that age was a factor – even if the company would never admit it.
And companies know this.
They know that age discrimination lawsuits are expensive, time-consuming, and create terrible publicity. They know that juries are often sympathetic to older workers who get pushed out.
So when you’re 57 and negotiating your severance package, you have leverage that a 37-year-old doesn’t have.
You don’t have to threaten a lawsuit. You don’t have to be aggressive about it. But simply by being in a protected age category, you represent more risk to the company.
Use that.
Not in a manipulative way. Not in a way that’s dishonest. But simply by understanding that the company is already thinking about this risk, and they’re likely willing to pay more to make it go away cleanly.
The Bottom Line
Here’s what I want you to take away from this:
Your severance package is negotiable. Even when they tell you it’s not. Even when they make it sound like you’d be asking for something outrageous.
Corporate outplacement services are almost always terrible. Especially for executives. Don’t waste your time with them.
You can negotiate for the budget to work with a specialist of your choice. This is the key strategy. They’re already planning to spend money on career services for you – just redirect it to someone who’s actually good.
If you’re older, you have more leverage. Companies are terrified of age discrimination lawsuits. Use that to your advantage.
Get everything in writing. Don’t sign until every negotiated term is clearly spelled out in the severance agreement.
And most importantly: Don’t let them rush you. Take the time you need to review the agreement, understand your leverage, and negotiate for what you deserve.
Companies are willing to pay to protect themselves from risk. Make sure you get what you’re worth.
Ready to Take Action?
If you’ve been laid off and you’re negotiating your severance package right now, I want to help.
Watch my full YouTube video where I break down the exact negotiation strategy, including the specific language to use: How to Make Your Company Pay for Your Executive Resume & LinkedIn
Grab my free ATS resume template to start building a resume that actually gets past automated systems: Get the template here
Using ChatGPT to write your resume? Most people are making critical mistakes that kill their chances of landing interviews. Grab this free checklist to fix those mistakes and start getting responses.
And if you’ve successfully negotiated for executive resume and LinkedIn services, and you’re looking for someone who actually knows what they’re doing? Let’s talk. I specialize in working with executives who need materials that match their level.
Don’t let your company shortchange you on your way out. You’ve earned better than that.
Have you negotiated your severance package before? What was your experience? Drop a comment below – I’d love to hear your story.