He himself engineered a layoff, scoring 3 months' base salary and a six-figure severance packag
Sam Dogen, the millionaire founder of Financial Samurai--a personal finance site--recently offered some unconventional advice to professionals considering resignation: "Don't quit your job - get laid off instead." As per CNBC Make It, Mr Dogen, a 47-year-old former banker turned stay-at-home dad since 2012, amassed a passive income of approximately $380,000 (over Rs 3 crore) by 2023 through a diversified portfolio of stocks, bonds, real estate, and other investments. He argued that strategically engineering a layoff can provide more benefits than voluntarily quitting one's job.
Mr Dogen himself engineered a layoff over a decade ago, scoring three months' base salary and a six-figure severance package. This clever move, combined with his $80,000 annual passive income at the time, paved the way for his early retirement.
However, he returned to work last year after selling a chunk of his portfolio to fund a new home purchase. The gig lasted only four months, and his abrupt exit raises eyebrows, especially since it goes against his advice.
Nevertheless, he shared his expertise with CNBC Make It, revealing two valuable tips for professionals looking to negotiate a layoff when considering exiting their jobs.
Communicate your unhappiness
Mr Dogen advised employees to start by expressing their discontent to the right people. "Speak up and let HR or your supervisor know you're unhappy and desire changes. Make it clear that if those changes aren't made, you're willing to leave,'' he suggested.
He feels that by voicing concerns, employees can create a win-win scenario. "No employer wants an employee who's just going through the motions," Mr Dogen noted. By speaking up, employees may be able to revitalise their role or pave the way for a graceful exit.
Offer to ease the transition
In case your employer can't meet your demands, it's time to pivot the conversation towards a mutually beneficial exit strategy. ''Let's work together to make this transition seamless. I'm willing to stay on for a while to ensure a smooth handover, but in exchange, let's discuss a severance package,'' he advised.
By offering to assist with the transition, you're making it easy for your employer to let you go. This approach also shows you're committed to supporting the team while also looking out for your interests.
Mr Dogen practised what he preaches, staying on for two months in 2012 to train his junior replacement and introduce them to clients. This approach often yields positive results, especially if you're a high-performing employee.
"More often than not, your employer will work with you, especially if you're a better than average employee," Mr Dogen noted.