Editor’s note: This article was originally published on September 6, 2018.
Sometimes, a new job isn’t the dream job you imagined. But you can’t always give up a paycheck.
Unless the company pays you to leave.
Some companies are making it easier to quit, paying dissatisfied employees to exit gracefully.
Executive introduction
Online retailer Zappos offers new employees one month’s salary and three months to leave the company. Amazon provides some employees with severance packages of up to $5,000 per year.
Why do companies pay people to resign? Because it’s also in the employer’s best interest.
“We want you to be here because you believe in the vision and purpose of the company and can make a difference,” said Megan Petrini, director of new hire programs at Zappos.
Zappos is not your typical office.
“We have parades all the time,” she said. “If a parade comes and you call and you can’t hear it…if it ruins your day, you’re not going to be happy here.”
Zappo’s policy is officially called the “Graceful Time Off Policy,” but it’s more commonly known as “Perks.” The company’s four-week training program has been extended to about the halfway point. It is valid for three months from the date of employee joining.
“That way they can see what the training looks like, get a feel for where they are and really make sure it’s right for them and makes them happy,” she said.
Some years, no one takes up the offer. Other years, it’s more popular. Three people have taken over the company so far this year.
“This is higher than normal,” Petrini said. “But the cool thing is we know the people who work here were chosen to work here and they’ve been paid to quit.”
Amazon borrowed ideas from Zappos (acquired in 2009) and launched a similar program called “Pay to Quit.” Every year, employees in its operations centers are given the opportunity to leave the company. Quotes are $2,000 the first year and increase by $1,000 each year to a maximum of $5,000.
“We want people who work at Amazon to want to come here. Staying somewhere you don’t want to be is not healthy for our employees or the company in the long run,” an Amazon spokesperson told CNN.
The program has been implemented since 2013. “We told them beforehand that we wanted them not to accept the offer. In fact, we wanted them to stay.”
While offering employees a cash exit can help boost productivity and morale, high acceptance rates may mean it’s time to reevaluate how your company recruits.
“Examine your hiring process, who are we hiring, how are we developing them, are we matching jobs to skills,” says John, executive coach and author of “Moxey: The Secrets of Bold and Courageous Leadership.” Baldoni said.
But these plans can also backfire and may not be effective in weeding out bad apples.
“A lot of times, the people who might take advantage of it might be selective high performers,” he said. “Those who have no choice, who are dead set on their jobs, have nowhere else to go.”