Key Points:
- Quitting a career can be beneficial and lead to success, even though it can be difficult to let go.
- Emotional attachment to a job can prevent us from considering a career switch.
- Opportunity cost is the value lost by choosing one opportunity over another.
- Considering the time value of money can help us evaluate the financial benefits of switching careers.
- Quitting comes with risk, but it can also offer greater rewards and opportunities.
- Sometimes cutting losses and exploring new options can lead to better career prospects.
- Considering long-term regret can help us make bold career decisions.
Sometimes quitting is the right thing to do, whether it is leaving a city, a relationship, or, yes, even a career. But as an executive coach, I find that most people have major issues with giving up on a career, even one that has grown stale and unfulfilling. We can hang on for years — even decades — after we should have just thrown in the towel. Why?
There are countless reasons, but these are the ones I encounter the most in my practice:
- No one wants to be seen as a loser. After all, winners never quit and quitters never win.
- We believe greater success in our current career is just around the corner.
- We do not know why we should quit. We cannot articulate a convincing reason.
- Quitting will take us outside our comfort zones and inject uncertainty into our lives.
- We have dedicated too much of our time and human capital to succeeding in an industry or discipline.
But instead of focusing on the downsides, I encourage my clients who are finance professionals to consider the upside of quitting. I speak from experience, as I am someone who has quit multiple times to achieve success in various areas.
Inspired by episodes of The Big Bang Theory, I’ve devised six perspectives that highlight the benefits of quitting:
1. The Sunk-Cost Fallacy
Ignoring sunk costs and focusing on the future is essential in finance. The same applies to our careers. The time we’ve spent in a certain job or industry matters less than where we will spend the next phase of our career.
2. The Opportunity Cost Alternative
Every day we spend in one career is a day we do not spend building a career in another field. We need to consider the potential value lost by choosing one opportunity over another.
3. The Time Value of Money
We cannot ignore the financial benefits of switching careers. Even if there is an initial decline in salary, analyzing the present value or future value of the additional money we can make can make the decision to quit more appealing.
4. The Risk-Return Paradigm
Quitting comes with risks, but we should also consider the potential return on investment. Sometimes taking a leap of faith can lead to better career prospects and financial rewards.
5. The Cut Your Losses Proposition
In portfolio management, selling underperforming assets is a common practice. The same principle can be applied to our careers. If our current career is stagnant and unlikely to improve, it may be time to cut our losses and explore new opportunities.
6. The Regret Bill Factor
Regret is a common emotion when it comes to career decisions. To overcome this, we can fast forward and imagine ourselves in the future looking back on our choices. Will we regret not taking the risk to switch careers?
Of course, there is more to quitting than these perspectives. It is important to consider personal values, transferable skills, and long-term goals. But having the right perspective can lead us to make bold career decisions and ultimately find success.
