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paying someone to quit their job

Image by iosphere, via FreeDigitalPhotos.net

Why would a company PAY their employees $5,000 to quit?!

I first heard of this concept being implemented at Zappos, where CEO Tony Hsieh offered employees who went through is rigorous training program major amounts of cash to quit right there on the spot.


The thought was that employees who weren’t really all that inspired to work at Zappos – people who in the long run would not be beneficial to the company and possibly actually cost Zappos money – would take the bait (the cash) and alleviate Mr. Hsieh and Zappos management of future problems. Plus, on the flip side, people who turn down the money to work there prove instantly that they are committed to the company’s vision and will be a valuable member of the team.

Amazon is the most recent company to embrace this idea, and this article goes in depth on why. I particularly found interesting this bit of data-driven rationale on why to pay employees to quit:

According to a recent infographic in Officevibe, 70 percent of U.S. workers are not engaged at work. A disengaged employee is a huge cost to any company. Disengaged employees can reduce the morale of the other employees, decrease productivity, produce lower quality and eventually lose customers or clients. But there is another cost to having a disengaged employee, the cost of not having an engaged worker. Officevibe also shared that companies with engaged employees have 2.5 times more revenue.

So, is this an initiative your company should initiate? Let me know your thoughts!



Join the discussion One Comment

  • Lisa says:

    It’s an interesting concept. And I love the part in the original article about leading your employees, not just managing them. Yes, most people leave because of poor management. Likewise, people will stay and produce for a manager they like and trust. Too bad a lot of managers won’t read this or similar articles.