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Learn from Zappos: Pay Employees to Quit

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HaileyMcK
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Re: Learn from Zappos: Pay Employees to Quit
HaileyMcK   2/12/2014 8:12:54 PM
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@Ariella, I heard an interview with Starbucks CEO and he was talking about their corporate culture of sustainability and environmetnalism, making a difference in the world. To all: can anyone think of an electronics OEM or OCM that has this sort of corporate culture stated publically?

tech4people
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Re: Its nice to See Zappos stick to their PE /Startup Roots
tech4people   2/10/2014 9:51:19 AM
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Hailey,

Yes either you will see them lose some consumers or you will see them reduce Discretionary Expenditure elsewhere(like eating out or on their Cellphone Bills).

We live in a Tight Economy currently;consumers will have to adapt their behavior accordingly.

 

Eldredge
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Re: Learn from Zappos: Pay Employees to Quit
Eldredge   2/6/2014 7:41:12 PM
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In other work cultures, I wouldn't characterize the goal as 'happiness', but perhaps more 'satisfaction', derived from striving, performing, and achieving organizational goals.

Ariella
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Re: Learn from Zappos: Pay Employees to Quit
Ariella   2/6/2014 8:36:05 AM
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I read Tony Hsieh's book, Delivering Happiness: A Path to Profits, Passion, and PurposeZappos has a very strongly defined company culture, and they really want to be sure that the employees will fit it and contribute to it. That's why it makes sense to see who would rather take some money no than stick around. 

At the end of the book, Hsieh shifts his focus to discussing happiness. He says his goal in writing was "to contribute to a happiness movement to make the world a better place" (p. 239). Now that sounds utterly sappy, but the idea of fostering a certain type of culture is that you create a context in which such statements are acceptable. He also said that Zappos is about delivering happiness to the world" (p. 230). Hsieh believes that happiness can function as an "organizing principle" for businesses. While for an individual, passion and purpose combine to arrive at pleasure, in a business, those two goals combine for profit.  There is something that is undoubtedly appealing in that model, but I do not buy it altogether. There are many businesses that are far more successful than Zappos who developed different models for their own culture of success.




Eldredge
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Re: Learn from Zappos: Pay Employees to Quit
Eldredge   2/5/2014 5:31:28 PM
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Certainly this has been done on professional sports teams. Not really sure how well it has worked as a general rule.

tfcsd
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Learn from Zappos: Pay Employees to Quit
tfcsd   2/5/2014 1:28:27 AM
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Interesting concept. Has anyone figured how much it would benefit the company if they go up the food chain and have those people quit if paid? Several times I have seen that it would be cheaper for everyone if certain people where paid to leave a company.

Eldredge
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Re: Innovative
Eldredge   2/4/2014 8:54:20 PM
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@Hailey - great point - Offering a $4,000 incentive to 'quit' makes new employees wieigh their desire/commitment to stay with the company against the immediate bonus. At first blush, the incentive seems unconvetional, but I think actually serves the purpose very well.

t.alex
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Re: Innovative
t.alex   2/3/2014 8:51:30 AM
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Nice way to get dedicated and inspired talents.

HaileyMcK
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Re: Innovative
HaileyMcK   1/31/2014 7:22:28 PM
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A bad hire can be incredibly expensive. The U.S. Department of Labor says that a bad hiring decision cost as much as  30% of  the annual salary being offered. Do the math. One mistake for someone paid $50,000 a jyear translates to a potential $15,000 loss for the employer. That makes $4,000 seem like a bargain right?

HaileyMcK
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Re: Innovative
HaileyMcK   1/31/2014 7:20:16 PM
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I agree, it's smart and innovative. And that $4,000 figure is enough to give someone more breathing room if they are in the category of taking  a job they don't want out of desperation. I'm actually suprised that more people don't take them up on it.

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