Self-made millionaire reveals smarter way to leave your job — Never quit and do this instead

Author and investor Sam Dogen lived as a stay-at-home dad since 2012 after opting for an early retirement. Dogen quit his job in 2012, and his annual passive income of $380,000 allowed him to live happily until 2023. While Dogen's mix of stocks, bonds, real estate properties, and other investments generated great income, late last year, he decided to return to work as both of his kids were about to head to school, full-time.

The founder of Financial Samurai found a job that seemed a good fit, but he quit four months later. Looking back, Dogen said he would have done things a little differently, in a conversation with CNBC Make It.

Here's what people should do instead of quitting

By abruptly quitting, Dogen realized that he didn't follow his own advice, "Never quit your job, get laid off instead." Dogen was speaking from experience as that is exactly what he did back in 2012. Instead of quitting, he orchestrated a layoff that allowed him to take away three months of his base salary and a six-figure severance check. At the time Dogen was also making $80,000 a year in passive income, which allowed him to retire early. 

However, engineering the layoff, wasn't straightforward. Dogen explained his strategy in detail. 

Here's how to negotiate a layoff

Dogen shared that managing a layoff depends on the specific financial, and job situation of workers. Thus, workers can tailor their strategy to their own circumstances. 

Start with better communication 

Dogen says workers should get the ball rolling by communicating their unhappiness to the right people. He says people need to talk to their HR or their direct supervisor and convey the things they don't like or the changes they would like to make. 

“Ultimately, I’d like to leave if these changes are not met," Dogen says. 

He says communication is important to create a win-win situation. Workers may end up getting a raise or they would get to negotiate their exit. 

Offer to help

In case the company fails to meet the demands, Dogen says that workers can pivot the conversation towards them leaving the position and making the transition easier. 

Dogen recommends that workers say, “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.”

This is what Dogen did as he stayed at his job for two months to train his junior hire for his role. By doing this, Dogen says the company may be willing to provide workers a better exit.

Get to the negotiation

Finally, Dogen says worker should ask if their company is conducting a round of layoffs and if they can be included. This is because, under the WARN Act, companies with 100 or more employees must provide 60 days warning before mass layoffs and provide employees compensation, usually 60 days of base pay.

Apart from this, by staying on longer and training the new hire, workers can further negotiate a severance pay as well. “The standard is one to three weeks of pay for every year served,” Dogen says. 

Furthermore, a layoff is beneficial in many more ways. Dogen says if workers get laid off they can also claim unemployment benefits, subsidized healthcare, and more.