Millionaire Retiree on Why You Should Never Quit Your Job — 3 Steps To Take Instead
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Gabrielle Olya
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Molly Sullivan
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If you’re considering leaving your job, there may be a better option than simply resigning and giving your two weeks’ notice. Sam Dogen, a retired self-made millionaire and founder of Financial Samurai, offered a more lucrative alternative.
“Never quit your job,” Dogen told CNBC. “Get laid off.”
Dogen used this tactic of engineering his own layoff in 2012, when he left his job as an investment banker after 13 years. Dogen was able to negotiate a layoff package that included three months of his base salary plus a low six-figure severance check.
“As a previous boss myself, the worst thing that can happen is when an employee of value quits and gives you two weeks’ notice or less,” Dogen said. You can use this power to your advantage, he noted.
If you want to negotiate your own layoff, Dogen recommends a three-step approach.
Make It Clear You Are Unhappy
If you’re considering quitting your job, chances are you’re unhappy in your role. While your instinct may be to grin and bear it until you find something better, it can actually pay off to be transparent about how you are feeling.
“You basically have to talk to HR or talk to your direct supervisor, say, ‘I’m not happy here, I’d like to make some changes,'” Dogen told CNBC. “‘Ultimately, I’d like to leave if these changes are not met.'”
Doing so sets you up for a “win-win situation,” he said. Your employer might end up meeting your needs, in which case you won’t have to quit.
“They might give you a raise,” Dogen said. “They might give you more flexible hours. No employer wants someone whose heart is not in it anymore.”
Offer To Help With a Transition Plan
If your employer does not meet your requests, the next step is to communicate your plans for leaving — but be willing to stay on board long enough for a smooth transition. This will give you more leverage when asking for a severance package.
Dogen recommended saying, “Let’s figure something out. I’m willing to stay as long as possible to help make the transition. But in light of that, let’s talk about a severance package.”
In Dogen’s case, he ended up staying with his company for an additional two months to help train his replacement — and this paid off.
“More often than not, your employer will work with you — especially if you’re a better than average employee,” he said.
Volunteer For a Layoff
In some cases, your company might already be planning to do a layoff in the near future. If this is the case, you can use this to your advantage when negotiating your severance package. You can volunteer to be part of the layoff and help craft the package you receive. Whatever you get, it will be better than what you get when you simply quit.
“The standard is one to three weeks of pay for every year served,” Dogen said.
And the benefits go beyond a cash payoff.
“If you get laid off, you get unemployment benefits,” Dogen said. “You get a severance package, deferred comp, subsidized healthcare. You get tons of stuff that gives you a huge financial runway for your next endeavor.”
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