Pay to Quit?
Amazon CEO Jeff Bezos described his “Pay to Quit” program in his most recent, 4,434-word letter to shareholders this month.
You read that right: pay to quit.
Amazon is offering to pay its staff to quit once a year, with newcomers to the company being offered $2,000 if they leave. This sum increases $1,000 a year, up to a maximum of $5,000.
“The goal is to encourage folks to take a moment and think about what they really want,” he said.
It’s a bit reminiscent of Zappos’ offer to new hires that has been much covered in the media, and now Amazon, after testing it for several years, has officially rolled their own program out.
Bezos Understands The Value of Keeping the Right People (Or Getting Rid of Those Who Don’t Fit)
We’ve talked about before on our blog the value of a company’s people.
Arguably the only sustainable competitive advantage in the long-run is your people. As someone trying to maximize the efforts of those he’s leading, Bezos recognizes this idea.
The program is surely an aggressive one, but it signals Bezos’ desire to find and keep those who are most engaged with their work.
It’s safe to also assert the program may also foster deeper relationships for those who make the decision to stay a part of the team (no doubt, the majority of people). It can also serve to create a sense of pride for staff that are happy, engaged, and who want to continue to work there.
And why might Bezos be including this program in his outward communications?
Bezos is creating a sense of pride for existing staff, but not to be overlooked is the fact he’s suggesting to potential, future employees that the team members at Amazon are willing to turn down that money to stay at the company! It’s an bold outward signal, and time will tell if it’s successful in getting rid of the disengaged.
Your People and Unrestrained Growth
There are two necessary components to find unrestrained growth: one, having the right people, and two, having highly functional teams connected to the company. This of course requires attracting the right people over time, keeping them, and saying goodbye to those who aren’t a fit anymore. (This framework also happens to be the roadmap that Edoc Virtual helps create for companies moving from a traditional setup to a more flexible one.)
Bezos adds to this critical point: “In the long-run, an employee staying somewhere they don’t want to be isn’t healthy for the employee or the company.”
Trusting First Is What Cultivates Relationships
While Bezos is looking to get rid of those who might not be engaged or performing, he’s also trusting his people to believe in Amazon’s purpose enough to turn down that offer! Similar to Amazon’s so-called employee “buy in” with this vision Bezos has, trust at Edoc also, in many ways, starts with leaders “trusting first.”
If offering staff money to quit sounds a bit too bold, what’s another way to give trust away first?
With transparent/open books at Edoc, we’re able to see where we impact the company’s bottom line. That’s something proactive, resourceful and achievement-oriented staff value.
Then how do you measure the current state of trust in a company?
To measure the current state of trust within your company, ask these questions, among others:
Are staff empowered to utilize their discretion and be resourceful, or do they most often make decisions based purely on policy/procedures?
Are you comfortable with sharing ideas and opinions with everyone on the team?
Do you feel confident that leaders (or staff) make day-to-day decisions in the best interest of the company?
Do you think the company known for its customer-centric culture (including tracking “every metric customers care about”) is sending a negative message towards its own people? Or is it another innovative program by Bezos that will get rid of those holding back the company’s growth? Let us know.
