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Should You Bribe Your Team to Quit?

June 2nd, 2008 @ 9:03 am

2 Comments

Categories: Leadership, Management, Strategy, Teamwork, Work Life

Tags: Team, Employee, Zappo, Workforce Management, Retail, Internet, Recruitment & Selection, Payroll Solutions, Human Resources, CC Holland

If you’re looking to fill your organization with people who are as dedicated to your company as you are, why not weed out the wanna-bes by giving them a quitting bonus?

That’s the unusual approach taken by Zappos.com, a leading Internet shoe retailer. As Bill Taylor explains in his Harvard Business Publishing blog, it’s an outside-the-box approach that works.

It’s a hard job, answering phones and talking to customers for hours at a time. So when Zappos hires new employees, it provides a four-week training period that immerses them in the company’s strategy, culture, and obsession with customers. People get paid their full salary during this period.

After a week or so in this immersive experience, though, it’s time for what Zappos calls “The Offer.” The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit!

Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for.

Zappo’s distinguishes itself from the competition by offering fanatically good customer service. If someone takes the money and runs, they figure, they’re not bought in to the concept and won’t help the company achieve its mission.

We’re not talking about creating a culture of employee inbreeding here. Rather, this is about building a workforce that has at least one thing in common: a devotion to the common cause. And that’s something every employer values.

Are you filling your organization with the right people? Putting your money where your mouth is may be one way to find out.

CC Holland is an award-winning writer and editor whose work appears in several national publications and Web sites.

 
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    1

    dewolves

    06/03/08 | Report as spam

    This is a management cop out...

    No doubt that this is a provocative topic providing a certain shock value. On the surface it seems like an interesting approach. However, it seems to me to filled with risk. First of all, this practice is certainly no secret. I would expect that many applicants sign up for the 4 weeks of pay and the $1000 bonus. In my experience, I've seen this phenomenon repeatedly. The "unemployable" will often land a "pulse only" job knowing they'll be trained for 4, 6, or 8 weeks for a job that can't do well. Frankly, 8 weeks of pay is better than none. Rather than priding themselves on hiring "committed" employees by using costly weed out ploys, firms should focus on creating compelling cultures and hiring the right employees at the outset. While turnover will always be a struggle in entry level, difficult jobs, it certainly makes no sense to pay people to leave. I think it's a management cop out for three reasons: 1) it takes the pressure off the initial selection decision, 2) it eliminates the need for mid-training assessment and termination, and 3) it provides financial incentive for even the best employees to take the cash and go down the street to a new job.

  •  
    2

    DerekIrvine

    06/06/08 | Report as spam

    RE: Should You Bribe Your Team to Quit?

    Interesting approach and it seems to work for them -- in the short term. I wonder what Zappos does to encourage their people to stay over the long term. More here; http://globoforce.blogspot.com/2008/06/pay-employees-to-quit-recognize-them-to.html

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