Find your Coach
BetterUp
Request a demo

Is it better to be fired or to quit: know the difference

March 17, 2023 - 16 min read

Stressed-man-sitting-in-front-of-computer-is-it-better-to-be-fired-or-quit

Jump to section

Common reasons to look elsewhere

Signs you’re getting fired

4 benefits of quitting vs. being fired

3 benefits of getting fired vs. quitting

Taking the next steps

Deciding to leave a job is always scary. 

Maybe you’re hindered by the lack of growth opportunities or frustrated with management. Or you might sense the company wants to push you out of your job

Whatever the source of your concern, you’re not alone — 56% of workers worry about job security. The future’s uncertain, and your worries might have you wondering: Is it better to be fired or quit?

The answer’s complicated. If you quit before being fired, you might preserve your reputation — but you might also risk a severance package. We’ll discuss the pros and cons of quitting versus being fired to help you weight your options. 

 

Common reasons to look elsewhere

A recent survey by Flexjobs found that as many as 30% of workers want to resign from their job. Here are some of the most common reasons for leaving a job

1. Mental health

Workplace stress is a nearly universal experience, but if your professional challenges keep you up at night, it’s not healthy. An unreasonable boss, toxic working conditions, or responsibilities beyond your capacity can build up until you face burnout, anxiety, or depression. 

If your workplace feels like a trial-by-fire environment and you aren’t getting support to resolve the situation, it could be time to look for other opportunities. Find something that prioritizes employee satisfaction and mental health.

2. Monotony

New workplace challenges are exciting and keep employees motivated. If you’re not feeling there’s room to develop your skills, you might feel restless enough to leave. Boredom is actually a primary driver of resignations in the workplace

You spend approximately 1/3 of your life at work. Follow your passions, or try to align your role with your personal values, and find something that makes you feel you’re living your most authentic life

3. Lack of advancement opportunities

An entry-level job is fine for a year or two, but after that, most people look to expand their responsibilities and advance their careers. Your current employer should provide a clear path forward within the organization. Without professional development opportunities, 34% of employees say they’ll leave a position.

Don’t let the fear of quitting your job keep you from reaching your full potential. Find something that challenges you to make the most of that time and gain personal and professional development

4. Changed focus

It’s normal to have the passion you once felt for your work ebb and flow — 53% of workers who left their employment in 2021 changed industries.

Don’t let the fear of lacking the right skills hold you back. Employers are willing to train inexperienced hires if they demonstrate transferable skills. If you were in marketing, for example, and now want to try out sales, show how your strategizing skills make you an ideal fit for the new role. 

5. Under-compensation

You deserve compensation that lets you experience financial security and create a work-life balance. Changing jobs often results in a higher salary — 60% of workers who change jobs earn more. Find something that works for the lifestyle you dream of. 

Signs you’re getting fired

Perhaps you’re not considering leaving your job, but your instincts tell you the company might want you out. Don’t fret — 91% of fired executives found a better job afterward, so you’re in good company.

Here are a few signs to look out for:

1. Your workload’s reduced

If you’ve suddenly got a lot of free time during work hours, the management team might be redirecting your responsibilities to prepare for your departure.

Or if you notice you’re being given a lot of busy work that’s not directly impacting any projects, they might be distracting you while they arrange a replacement and severance package. 

2. The company’s financial outlook looks grim

Keep an eye on your employer’s quarterly earnings. If your state declares a recession, or poor performance leads to discussions of reduced profits, cost-saving measures, and a hiring freeze, you might be laid off in the near future.

3. Upper management is leaving 

Senior management is usually privy to significant changes before other employees. Pay attention to their comings and goings. If turnover seems higher than usual, it could be a sign the company is in trouble and layoffs are coming.

Stressed-woman-in-the-middle-of-managers-meeting-is-it-better-to-be-fired-or-quit

4. Workplace relationships are strained

You may find that your work relationships have become strained, particularly with your supervisor or manager. Conversations might be oddly formal, and they might give you less feedback than usual. Take note.

5. You’re being left out

Another warning sign is the feeling that you’re out of sync with coworkers as if you don’t receive as many meeting invites or requests for input. Even social events, like team-building exercises or group lunches, could happen without your knowledge. This neglect might mean your employer is preparing the team for your departure.

4 benefits of quitting vs. being fired

So, you’re either planning to leave or feel like you might be on your way out. If it’s the latter, you might want to quit before the firing occurs. Here are a few benefits of quitting first: 

1. You control the narrative

In job interviews, prospective employers commonly ask, “Why did you leave your previous position?” If you leave on your own terms, you can offer a confident, comfortable answer. But a dismissal can make that question awkward.

You need to find a way to be truthful with future employers about being fired or laid off while painting the experience in a positive light. Acknowledge that it wasn’t a great fit and that you’re grateful for a fresh start. 

Woman-talking-at-job-interview-is-it-better-to-be-fired-or-quit

2. You can prepare to rebound

If you’ve decided to leave your job, there’s no reason to quit immediately. Unless your mental health is at risk, take the time necessary to plan your departure.

Start sprucing up your resume, network with friends, and speak with recruiters to set the groundwork for a new job. You can also plan to take a career break if you have the means and want to recharge. Once everything is in place, you can hand in your two weeks’ notice.

3. There may be an option to receive benefits

Depending on the reason for your departure, it may be possible to negotiate a separation package, including unpaid vacation time, retirement benefits, COBRA coverage, and job placement assistance to help you transition. 

Whether you qualify for federal or state unemployment compensation depends on if you’re leaving for a good cause, such as to care for a sick family member, so consult with an expert to find out before leaving.

4. Higher chances of getting a good recommendation

Regardless of how you feel about management, it’s important to leave on good terms. Their recommendation can make or break your job search. Strive to make your exit as graceful and painless for your team as possible. 

Woman-shaking-coworkers-hand-at-office-is-it-better-to-be-fired-or-quit

In your resignation letter, offer to make offboarding easier by documenting your workflow, completing any outstanding projects, and training your replacement. You could also write a goodbye email to coworkers and clients. These gestures help pave the way for positive professional references.

3 benefits of getting fired vs. quitting

If you have a feeling you’re on your way out or have already received a dismissal notice, don’t fret just yet. Here are a few benefits of being fired: 

1. Potential unemployment benefits

If you lost your job through no fault of your own, like being laid off, you might be entitled to unemployment insurance from federal and state governments. These payments might hold you over until you find a new job. 

If you were fired, eligibility might hinge on whether you can prove wrongful termination on the part of your former employer. Know your rights by consulting an employment attorney to ensure your employer treated you fairly.

2. Potential severance package

Depending on the circumstances of your dismissal, you could be entitled to a severance package. This package might include payment for unused vacation days and extended health insurance coverage. 

Mans-hand-signing-contract-is-it-better-to-be-fired-or-quit

3. You receive your final paycheck

No matter the circumstances of your dismissal, you’re entitled to your full wages, calculated to and including your last day. If your employer withholds your paycheck, that may be grounds for legal action. If you have any questions, consult a lawyer specializing in labor issues.

Taking the next steps

Leaving a job is daunting and scary, so take a deep breath. If you’re wondering whether it's better to be fired or to quit, you deserve a little self-care and tranquility. 

Take some time to grieve this loss. Whether you want it to happen or not, you’re likely experiencing some level of career disappointment, and you’ve probably made friendships you might be afraid to lose.

Exchange contact details with coworkers you care for and feel good about exiting on your own terms — or dealing with a dismissal gracefully.

Invest in your career

Get your promotion. Make your career change. Build the future you dream about. And do it faster with a world-class BetterUp Coach by your side.

Invest in your career

Get your promotion. Make your career change. Build the future you dream about. And do it faster with a world-class BetterUp Coach by your side.

Published March 17, 2023

Allaya Cooks-Campbell

With over 15 years of content experience, Allaya Cooks Campbell has written for outlets such as ScaryMommy, HRzone, and HuffPost. She holds a B.A. in Psychology and is a certified yoga instructor as well as a certified Integrative Wellness & Life Coach. Allaya is passionate about whole-person wellness, yoga, and mental health.

Read Next

Consumer
17 min read | June 22, 2023

19 most in-demand jobs to consider in 2023

Interested in the most in-demand jobs in 2023? Check out what jobs are in demand now, and how your soft skills will help you thrive in them. Read More
Consumer
12 min read | January 9, 2023

Choosing between two jobs to find a satisfying career

While it's exciting receiving several job offers, choosing between two jobs can be daunting. We outline how to handle multiple job offers at once. Read More
SEO
11 min read | October 31, 2022

5 Tips for reentering the workforce

After an extended leave of absence, reentering the workforce can be scary. But it doesn’t have to be. Here’s what you need to know. Read More
Consumer
12 min read | December 30, 2021

Why salary negotiation is the next skill you need to master

Salary negotiation may feel intimidating, but it could make a huge difference in your career. Read this guide and learn how to negotiate like a pro. Read More
Consumer
15 min read | October 18, 2022

Worried about your job In a recession? How to protect yourself

Will you lose your job in a recession? No one is completely immune, but you can prepare for a worst-case scenario and learn how to adapt with these tips. Read More
Consumer
13 min read | October 20, 2022

Give me a (career) break: what to know before taking time off

Career breaks don’t carry the same stigma as before, but they still come with some risks. Here’s what you need to know if you’re considering a sabbatical. Read More
Consumer
16 min read | November 11, 2022

Add the best books for a career change to your reading list

Add these best books for a career change to your reading list. Learn the benefits of a career change, and how you’re never too late to find your dream job. Read More
Consumer
26 min read | February 26, 2024

How to enjoy a career change at 40 and take the leap

Sometimes you need to freshen up your work life. The good news: you have options. Here are some tips and best jobs to change careers at 40. Read More
SEO
20 min read | November 6, 2023

A guide on how to pick a new career

Finding a career that fits your skills and interests is a lot of trial and error. The average person holds 12 jobs. Read on to learn to make a good change. Read More

Similar Articles

Professional Development 

Learn to let it go: how to deal with career disappointment

Professional Development 

How to quit a job you just started: Tips and guidance

Job Search 

Should I quit my job? 5 reasons it may be time to resign

Professional Development 

The secret to achieving job security — and why it matters

Well-being 

What it means to be laid off from work and how to get through it

Professional Development 

Use severance package negotiation to ask for the compensation you deserve

Professional Development 

9 signs that you’re being pushed out of your job

Employee Experience 

Voluntary layoffs: Are they a good idea?

Job Search 

Can you just quit your job? What to know before jumping ship

Stay connected with BetterUp

Get our newsletter, event invites, plus product insights and research.