Pay off employees to quit? Maybe

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in Best-Practices Leadership,Leaders & Managers

Train new employees for four weeks, then offer them $1,000 to quit? Sounds like a crazy way to run a business.

The bribe is one way online shoe retailer Zappos ensures that its employees have the commitment and energy needed to make this customer-obsessed organization succeed. It’s tough answering phones and talking to customers for hours. If a new hire isn’t a good fit, the company would rather know sooner than later.

CEO Tony Hsieh has raised the “quit now” bonus over the years from $100 to $1,000, and leadership may hike the number higher.

Why? As the company grows, it becomes ever more challenging to maintain the company culture and obsession with customers. The cost of not making the offer to its newest employees would likely be higher.

—Adapted from “Why Zappos Pays New Employees to Quit and You Should Too,” Bill Taylor, Game Changer blog, harvardbusiness.org.

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