Pay your employees to quit!

Not too long ago, the world caught wind of Amazon’s “pay to quit” program.( Although Zappoos did it first) , it was Amazon’s boldness to offer a serious severance pay for employees who wanted out of their job that caught the attention of the masses. The online commerce giant started paying their employees $5,000 for quitting.

They titled this crazy idea “Please don’t take this offer” to encourage people to think before making a big decision like quitting their job. The goal was to weed out “unenthusiastic employees” and to reward those who decided not to take the offer.

Every year employees are given this opportunity, so it is an on-going theme. Amazon also encourages a “self-management” way of working, where employees aren’t given titles and basically run the show. The question many are asking, however, is does this strategy work?

We can all agree that when an employee isn’t happy at his or her job, they won’t make the best customer service representatives and they won’t likely contribute in a positive way. Additionally, if an employee is given an ‘out’ they are far more likely to either be more enthusiastic about their job or leave it.

Other companies are taking a good hard look at this strategy. The question is could it backfire? How will it work in the long-run? After all, Zappoos lost over 200 of their employees after making the offer, will the same thing happen to Amazon? Will employees feel pressured to accept it? What will be the return on the investment? Won’t the companies simply lose money with nothing in return?

While the ultimate goal is for companies to retain high quality employees, the same could likely be done by offering employees a good reference should they quit. Whether this idea is sustainable or not is yet to be seen.

Opinions remain shared on the matter…what do you think?

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