Few could argue that Zappos is not one of the giants of the shoe industry.  The company, the revenue of which was only $70 million five years ago (wait for it, there’s a comparison coming to put it into scale), expects to generate sales in excess of $1 billion this year.  The company has been successful to a large extent because of its innovative strategies and great customer care, putting a strong emphasis on establishing an “emotional connection” with customers.

One genius strategy employed by Zappos is paying its employees to quit, according to Harvard Business Review.  When Zappos hires new employees, it provides a four-week training period to “immerse them in the company’s strategy, culture, and obsession with customers.”  While employees are compensated for this training period, after a week of training they are given what Zappos calls “The Offer.”  This offer allows the employee-in-training to quit and take home pay for training, as well a $1,000 bonus.

The genius behind this idea is that Zappos is looking for a strong sense of commitment, so those who opt for the $1,000 obviously are not committed (about 10% do take the money and leave).  Many companies struggle to hire committed persons who make their company memorable.  Zappos has developed one unique strategy for meeting this need which, at first, goes against common sense.  However, Zappos’ hefty revenue attests to the success of their strategy.

2 Responses to “Zappos Pays Employees To Quit?”

  1. That’s an interesting strategy. I don’t really see what’s to keep someone from taking the training and the $1000 Dollars if they have a few free months and need some money though. I guess it would look bad on your resume.

  2. becky.torre says:

    I remember reading about this strategy somewhere before. It really is brilliant. Actually, for that matter, they’re entire business model is brilliant. Their obsession with customers, especially, is so refreshing and like you pointed out, clearly successful.

Leave a Reply

Your email address will not be published. Required fields are marked *