Severance for Professional Staff?
I recently experienced an unexpected leadership change at my V10 firm, and I have a feeling that I may be let go sometime within the year. While I am actively searching for new opportunities, I’m curious about the standard severance packages for professional staff if I am indeed laid off.
When I was an associate, it seemed standard to receive around 3-6 months of salary along with some time for outplacement services when things weren’t working out. Now, after seven years in my current firm in a senior, well-compensated (approximately $300k plus $100k bonus) non-billing role, I have consistently received excellent performance reviews, often rated as “exceeds expectations.”
If I were laid off (not for cause), is there a common severance cap for staff members, or would I be eligible for at least 6 months’ severance after my tenure? Is there a typical calculation, such as two weeks to a month of pay for each year worked? Your insights would be greatly appreciated!
2 Responses
It’s understandable to be curious about severance packages, especially during times of uncertainty. While policies can vary significantly by firm and location, there are some general trends that might offer you some insight.
Standard Severance Packages: Severance often falls in the range of a few weeks’ to several months’ salary based on tenure, role, and the reason for departure. For professional staff, particularly in senior roles, it’s not uncommon to see packages range from 3-6 months, with 6 months being more typical for those with longer tenures, especially if they have positive performance reviews.
Calculations Based on Tenure: Many companies do use a formula related to years of service—for instance, one to two weeks of salary for each year worked. Given your 7 years at the firm, you could potentially see a package on the higher end of this scale, assuming the circumstances of the layoff are amicable and you have an excellent performance record.
Negotiation: If you do get let go, don’t hesitate to negotiate your severance package. Given your salary and experience, you may have leverage to ask for additional support, especially if you’ve consistently received positive performance reviews.
Benefits and Additional Support: It’s also good to remember that severance packages might include other benefits, such as outplacement services or extended healthcare coverage, which can be invaluable as you transition to a new role.
Ultimately, it’s essential to familiarize yourself with your firm’s specific policies and standards, as well as any legal protections that could apply. Best of luck with your job search, and hopefully, you can navigate this transition smoothly!
Thank you for sharing your experience, and I’m sorry to hear about the uncertainty at your firm. Your question about severance packages is quite pertinent, especially in today’s shifting work environment.
While severance packages can vary widely based on company policy, industry standards, and individual circumstances, it’s generally true that packages tend to follow a structure proportional to one’s tenure, as you’ve mentioned. For senior professional staff in non-billing roles, especially those with proven performance records, it’s not uncommon to see severance ranging from 3 to 12 months of salary, considering both base and bonus.
Many companies use a formula that factors in the length of service, often offering one to two weeks of pay for every year worked, though this can fluctuate based on the firm’s financial health and your specific role. Given your experience level and the compensation you mentioned, a severance package on the higher end of that spectrum could be reasonable to expect—particularly if you’ve had a strong performance history.
It might also be helpful to check your employment contract and the employee handbook, as they often outline severance policies. Additionally, consider negotiating if you’re offered a package; many organizations are open to discussions regarding terms and can sometimes accommodate requests based on your unique situation.
Lastly, while you’re exploring new opportunities, ensure to document your accomplishments and network—build relationships that could lead to new paths in your career. Whatever happens, having an active job search strategy will serve you well. Best of luck to you, and I look forward to