Severance After 5 Years

The five-year mark matters more than you think

Five years at a company is an interesting spot when it comes to severance. Past the "still new" phase. You've built relationships, learned the systems nobody documented properly, trained people who are still there. You know where things break and who fixes them. That knowledge has value — more than most people realize when they're staring at a severance letter.

But five years is also where packages start varying a lot. A lazy HR department might hand a five-year person the same offer they'd give someone with two years. Knowing what's actually typical is how you tell the difference between a fair offer and one that's banking on you not knowing better.

What the numbers look like

Based on our benchmark data, here's what people with approximately five years of tenure report receiving:

Role Level	Low (weeks)	Typical (weeks)	Generous (weeks)
Individual Contributor	2-3	5-8	10+
Manager	4	8-10	13+
Senior Manager / Director	5	10	15+
VP / Executive	8	10-15	20+

These are base ranges. Technology and finance companies tend to come in about 15-20% higher. Retail, education, and nonprofit tend to come in lower. Larger companies generally offer more than smaller ones. If your specific situation matters — and it does — run the numbers through our scoring tool for a personalized comparison.

If your offer falls below typical

An offer of 2 or 3 weeks for five years of service is below what most people report receiving, regardless of role. That doesn't automatically mean it's unfair — small companies with limited budgets sometimes genuinely can't do more. But if you work for a mid-size or large company and you're seeing numbers at the bottom of the range, it's worth a conversation.

The most common pattern at the five-year mark: someone gets offered one week per year (so five weeks) and accepts it without question. That same person could often get to two weeks per year (ten weeks) just by asking. Not demanding, not threatening — asking. Professionally, in writing, with gratitude and a reference to their contributions.

Your leverage at five years

What gives you standing to negotiate at five years? Institutional knowledge, basically. You know processes, relationships, history that isn't written down anywhere — it walks out the door with you. You've trained people. Covered for people. Seen projects through from concept to launch to cleanup. The company knows all that, even if they're not going to say it out loud in the HR meeting.

You've also been there long enough that the company likely wants a clean separation. Disgruntled five-year employees can do more reputational damage than disgruntled one-year employees because they know more and they know more people. The company has an incentive to keep you reasonably happy on the way out.

If you were a strong performer — good reviews, promotions, recognition — that's additional leverage. Bring receipts. Mention specific contributions in your negotiation. Remind them of the value they're losing, not as a guilt trip, but as a factual basis for a better package.

What to negotiate for

At five years, the package usually includes severance pay and maybe a pamphlet about COBRA. Not much else unless you ask. Worth asking about:

Extended COBRA coverage — ask the company to pay your premiums for 3-6 months. This can be worth thousands and companies agree to it more often than you'd expect. Outplacement services — not always useful, but free career coaching and resume help has value if you're genuinely unsure about your next move. A reference letter — get it now, in writing, while you have leverage. And if there's a non-compete attached, read it carefully and consider asking for it to be narrowed or removed. Our full negotiation guide covers this in more detail.

The bottom line

Five years of service should get you a meaningful severance package. If what you're looking at seems thin, you have more room to improve it than you think. Check the benchmark data, read the negotiation guide, and if you want a quick personalized comparison, score your package below.