Laid off or fired? The answer will shape your job search moving forward

Initially, losing a job can feel like a dream. We’ve all imagined that dreadful moment we’re called into the boss’ office and given bad news, but when it really happens, many people report feeling as though they are watching themselves being let go as opposed to actually living it. Surreal or not, firings and layoffs are a fact of working life for all of us. In many cases, people find themselves out of a job through no fault of their own. You may be the best worker in the entire world. That doesn’t mean you’re safe from budget cuts or an eager new executive looking to shake things up.

Even the terminology surrounding such dismissals can be infuriating. Take “losing a job” for instance. The phrasing implies one absentmindedly misplaced their career like a pair of keys or wallet. While the example cited above may seem like nitpicking, the way that you talk about being canned, sacked, or axed matters. Nowadays people tend to use the terms “fired” and “laid off” interchangeably, but that’s a major mistake.

Believe it or not, being fired and being laid off refer to two very distinct situations. While the end result of both is the same (dismissal from one’s job), the words you choose to use to describe what happened at your last gig will play a major role in your job search moving forward. Let’s break down the differences between being fired or laid off, and how to approach both situations as you begin looking for a new position.

Laid off vs fired

A firing is usually an isolated event aimed at a single employee for a specific reason or violation. Layoffs, meanwhile, tend to come in waves. An organization may layoff 15% of their entire workforce in an effort to restructure the company’s business model.

In other words, being fired is on the employee. Common reasons include inappropriate conduct, a failure to comply with internal policies, or simply put, being a bad worker. Conversely, layoffs are entirely out of employees’ control. Perhaps the employer is downsizing, or can’t afford to pay everyone’s salaries anymore.

While the distinction may understandably fade into the background of your mind in the immediate aftermath of losing a job, it’s imperative to use the right language while discussing your situation moving forward as you jump back into the job market.

As one can probably guess, being fired carries much more of a stigma than being laid off. When you tell a recruiter or manager that your last position fell victim to a recent round of layoffs enacted by your former employer, you’re effectively letting them know you weren’t let go because of who you are or the quality of your work, but the amount of dollars you occupied on the company’s financial spreadsheet.

Another major consideration: Laid off employees are routinely offered severance packages (pay, benefits) to help with the unexpected change in the short term. While not unheard of, such packages are offered much less often to fired employees, especially those dismissed for misconduct. Additionally, if you’ve been fired you’ll be less likely to qualify for unemployment benefits. The rules vary by state, however, so it’s worth researching your specific situation and location.

Getting fired, then getting hired

While it’s clear which of the two situations is worse, getting fired from a great job by no means you’ll be deemed unhireable. First and foremost, don’t hide from what happened. You may not be able to change the past, but you can shape the narrative surrounding it. While it can be tempting to conveniently omit being fired during job interviews and hiring processes, honesty is always the best policy. Sure, you could get away with lying – but is it worth the risk? You really will be labeled a pariah if you earn a dishonest reputation.

Instead, be transparent about whatever happened. The bright side here is you can do so in your own words. That being said, be sure to offer up an explanation, not excuses. No hiring manager wants to hear you were let go from a prior position because of a spiteful ex-boss or unfair evaluation system. By taking full responsibility you’ll immediately signal to decision makers that you’ve learned from those experiences (or mistakes) and now find yourself more determined than ever to succeed. Remember, positivity is key. Describe your dismissal as nothing more than a bump in the road. If hiring managers sense you’re still feeling defeated from being fired, they’ll question your resiliency in the face of adversity.

Finally, there’s no reason to go into great detail. No one ever said you can’t be both honest and brief! Don’t linger on the topic of your firing for too long. Even better, use the lessons you learned at your last job as a springboard to discussing what you can contribute in a new position.

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