What's your alternative?

When negotiating an exit package two of the most important things to keep in mind are:

1 - What’s your alternative?

2 – What will happen if you don’t accept?

If you’re offered $4,000 to leave, this may not sound like much. If realistically you can hope to achieve $15,000, an offer of $4,000 is not a good solution and you probably shouldn’t accept it. If, however, your alternative is a dismissal with no payout because you have done something wrong, or because you have had several warnings about your performance over the last few weeks and the employer’s procedural mistakes are minor, the $4,000 (and being allowed to resign instead of being dismissed), might be a good offer.

You also have to ask what will happen if you don’t accept. If you are offered $4,000, but you have a good case and you can expect to get $15,000, you are on strong grounds to take the case to an urgent mediation or to the Employment Relations Authority. If however, you have done something wrong and you turn the settlement offer down, you may find yourself with a dismissal on your employment record. This will make it hard to get a new job. If you take the case further, you may not even get the $4,000 that the employer originally offered you.

Sometimes we find that the “best alternative” changes during the meeting as we see the evidence, assess the strengths of both the employer’s and the employee’s case, and weigh up the pros and cons of all the available alternatives.

It’s often hard for an employee to understand the strengths or weaknesses of their own case, so it’s essential to have someone experienced acting for you who can advise you accurately.