Post by account_disabled on Mar 4, 2024 2:27:23 GMT -5
It sounds counterintuitive, but... what if the key to retaining employees is paying to quit? According to a Fast Company interview with Chris Ronzio, CEO and founder of Trainual, a SaaS software that helps small businesses add staff, makes this possible.
The CEO says that offering employees $5,000 to leave the company just two weeks after starting a job helps him find and retain top talent while maintaining a strong culture.
Better employees, the purpose of paying to quit
Ronzio borrowed the idea from Zappos, which gave employees what it called "The Offer": $1,000 to quit a week into their onboarding process.
Zappos used this dynamic as a way to test Chile Mobile Number List commitment, something it valued in its team. Ronzio, who launched Trainual in 2018, says that he decided to implement this strategy after an experience with a new employee who quit five days after hiring him. «He told us: This is not really the role I thought it was going to be when I accepted the job. "I think it would be better to accept this other offer."
Pay to quit
It made me think, how many other people feel that way but don't have the courage to say it? When we started hiring a lot of people, I remembered the idea of Zappos, and we instituted this policy in May 2020.
Chris Ronzio, CEO and founder of Trainual.
“It's important to know quickly if we've found the right people,” says Chris Ronzio. «When you do an interview, you really only have an idea of the company you are going to work for and the role. If someone knows after a week or two that this is not their place or their long-term position, it becomes more expensive to replace them as they take on more work and responsibilities.
Therefore, consider that giving this amount to new employees gives them the opportunity to stay with committed people who will be able to carry out their position without doubt.
“Yes or no” improves culture
The company makes it easy by giving new hires a short questionnaire after two weeks that says, "choose yes or no." If you want to stay with the company, simply choose "yes" and share the reasons for your decision. If you want to leave, choose "no", give any reason, take the money and continue on your way.
Initially, Trainual — which was recognized as the best workplace of 2021 by Inc. Magazine — offered to pay $ 2,500 to resign. To date, none of the 38 people hired since the policy was instituted have accepted the offer. So the company recently upped the ante.
“We look at our average salary when we think about changing the amount,” says Ronzio. "If someone makes $80,000 or $100,000 a year, then $2,500 might not be significant enough. They might decide to stay while they look for another job because they will earn more by staying. "Increasing to 5,000 created greater wage substitution, allowing them free time to find their next job."
Ronzio recommends this policy for companies that already have a strong focus on their culture. "For companies that are losing employees, I think it's a good opportunity to look in the mirror and figure out why," he says. «Is the salary not up to the market or is your culture not what it advertises? If there are things that get fixed in the business, I think it has never been more obvious than now.
Pay to quit
If you already have a turnover problem, paying to quit would be an additional financial tax on your business, Ronzio adds.
But if you're trying to go from good to great, and you've had some personnel changes here and there and wish you'd caught it sooner, I think it's a fantastic technique.
Chris Ronzio, CEO and founder of Trainual.
Pay to resign, a benefit
Paying employees to quit provides long-term benefits. If someone waits until six or twelve months into the job to leave, it is much more detrimental to the company than someone who leaves after two weeks, when you likely have a pool of applicants.
Accelerating the decision will represent real savings for your company. According to Ronzio:
After our employees have gone through training and onboarding, we prefer to make sure we're aligned before investing more in them, and the stakes are higher.
Once they are here, have experienced the training and met the people, they make a double commitment, first in accepting the offer and again after onboarding.
Chris Ronzio, CEO and founder of Trainual.
The technique also makes the hiring team more accountable. In addition to increasing the number of motivated workers . »They know that, if they make a mistake, the cost for the company is high. There is an internal responsibility to find great people. If they see any red flags, they know to slow down and be sure it's the right person. “That’s been a big byproduct.”
pay to give up an opportunity
Giving employees a financial incentive and control to terminate the company sends a powerful message: "We put them in the driver's seat and let them know that we know they are not captive here," he says.
«At any time, they can leave and find a better opportunity. And I think it's our responsibility to build a culture that people want to be in. It is very important that they reject the money, that they choose to commit, and that lays the foundations for a great working relationship," highlights the businessman.
The CEO says that offering employees $5,000 to leave the company just two weeks after starting a job helps him find and retain top talent while maintaining a strong culture.
Better employees, the purpose of paying to quit
Ronzio borrowed the idea from Zappos, which gave employees what it called "The Offer": $1,000 to quit a week into their onboarding process.
Zappos used this dynamic as a way to test Chile Mobile Number List commitment, something it valued in its team. Ronzio, who launched Trainual in 2018, says that he decided to implement this strategy after an experience with a new employee who quit five days after hiring him. «He told us: This is not really the role I thought it was going to be when I accepted the job. "I think it would be better to accept this other offer."
Pay to quit
It made me think, how many other people feel that way but don't have the courage to say it? When we started hiring a lot of people, I remembered the idea of Zappos, and we instituted this policy in May 2020.
Chris Ronzio, CEO and founder of Trainual.
“It's important to know quickly if we've found the right people,” says Chris Ronzio. «When you do an interview, you really only have an idea of the company you are going to work for and the role. If someone knows after a week or two that this is not their place or their long-term position, it becomes more expensive to replace them as they take on more work and responsibilities.
Therefore, consider that giving this amount to new employees gives them the opportunity to stay with committed people who will be able to carry out their position without doubt.
“Yes or no” improves culture
The company makes it easy by giving new hires a short questionnaire after two weeks that says, "choose yes or no." If you want to stay with the company, simply choose "yes" and share the reasons for your decision. If you want to leave, choose "no", give any reason, take the money and continue on your way.
Initially, Trainual — which was recognized as the best workplace of 2021 by Inc. Magazine — offered to pay $ 2,500 to resign. To date, none of the 38 people hired since the policy was instituted have accepted the offer. So the company recently upped the ante.
“We look at our average salary when we think about changing the amount,” says Ronzio. "If someone makes $80,000 or $100,000 a year, then $2,500 might not be significant enough. They might decide to stay while they look for another job because they will earn more by staying. "Increasing to 5,000 created greater wage substitution, allowing them free time to find their next job."
Ronzio recommends this policy for companies that already have a strong focus on their culture. "For companies that are losing employees, I think it's a good opportunity to look in the mirror and figure out why," he says. «Is the salary not up to the market or is your culture not what it advertises? If there are things that get fixed in the business, I think it has never been more obvious than now.
Pay to quit
If you already have a turnover problem, paying to quit would be an additional financial tax on your business, Ronzio adds.
But if you're trying to go from good to great, and you've had some personnel changes here and there and wish you'd caught it sooner, I think it's a fantastic technique.
Chris Ronzio, CEO and founder of Trainual.
Pay to resign, a benefit
Paying employees to quit provides long-term benefits. If someone waits until six or twelve months into the job to leave, it is much more detrimental to the company than someone who leaves after two weeks, when you likely have a pool of applicants.
Accelerating the decision will represent real savings for your company. According to Ronzio:
After our employees have gone through training and onboarding, we prefer to make sure we're aligned before investing more in them, and the stakes are higher.
Once they are here, have experienced the training and met the people, they make a double commitment, first in accepting the offer and again after onboarding.
Chris Ronzio, CEO and founder of Trainual.
The technique also makes the hiring team more accountable. In addition to increasing the number of motivated workers . »They know that, if they make a mistake, the cost for the company is high. There is an internal responsibility to find great people. If they see any red flags, they know to slow down and be sure it's the right person. “That’s been a big byproduct.”
pay to give up an opportunity
Giving employees a financial incentive and control to terminate the company sends a powerful message: "We put them in the driver's seat and let them know that we know they are not captive here," he says.
«At any time, they can leave and find a better opportunity. And I think it's our responsibility to build a culture that people want to be in. It is very important that they reject the money, that they choose to commit, and that lays the foundations for a great working relationship," highlights the businessman.