Ever think about offering a bonus for employees to quit your organization?
Zappos has - and it's an interesting case study, particularly as the bonus opportunity is part of its unique onboarding process. Zappos is known for its unique culture and, not surprisingly, it screens job applicants carefully for cultural fit. Those that don't pass the cultural fit screening aren't hired, no matter what skills and capabilities they bring to the table. Those that do progress to the company's training program.
From BLR's HR Daily Advisor, which quotes Zappos' CEO Tony Hsieh:
All new hires go through a 4-week training program that includes 2 weeks of taking customer calls. The obvious benefit is getting everyone attuned to the customer service standards of the company. But there's a bonus, Hsieh says. During holidays and heavy sales periods, anyone in the organization can (and does) sit down and start answering phones. That means Zappos never needs to hire temps who might not uphold the company's high customer service standards.
Once people complete the 4-week training period, they are offered a $3,000 bonus to quit. It's Zappos' way of saying we only want people who really want to work here. Two or three percent of trainees take the bonus and leave, Hsieh says. Zappos believes that this is money well-spent as these are people who probably wouldn't have lasted long anyway.
Not only that, but Hsieh believes that there is a positive impact on the trainees who end up staying, that the act of rejecting the departure bonus has the effect of strengthening their commitment to the company.
Could your organization benefit from the select use of a quit bonus? What's your take on the Zappos practice?
Image courtesy of greaterseattle-homes.com
I think that is wrong for what Zappos is doing. I hate the fit to the unique culture _rap, I want to say a bad word, but I won't. I have worked for companies who did the same thing and end up having to leave after awhile for not being to keep up with thier "standard's" I am out of words over this. Thank you for the article.
Posted by: davek | September 03, 2011 at 12:56 AM
nice idea !
Posted by: hr consultants mumbai | September 03, 2011 at 06:18 PM
This is an interesting concept, and if it works to keep the right people and get rid of the bad apples with the bad attitude, why not? The company probably saves themselves a lot more money in the long run by creating an easy out for employees who don't fit in.
Sure, I agree with the poster above about 'company culture' and having to fit in, why create a 'popular clique' feeling at the workplace but I think this is more about keeping employees who love the company and want to do a good job.
It's a home run for all. Cool idea, I'm reposting on our Twitter feed @jpatrickjobs and on https://www.facebook.com/J.Patrick.Associates
Posted by: Elissa Jane Mastel | September 06, 2011 at 09:46 AM
This is certainly very interesting. If only this wouldn't be considered as a labor code violation in my country.
Posted by: HR Software Packages | September 12, 2011 at 11:39 PM
Now this is indeed very interesting. Perhaps I could use this with some employees who showed great potential upon application but just kept slacking since the hiring.
Posted by: corporate leadership training | September 28, 2011 at 10:22 AM