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Paying employees to stay for 90 days

Name: Paying employees to stay for 90 days
Uploaded: 2023-01-21T23:00:28+00:00
Duration: 50 s
Channel: Shanli Liu, CPA, CTP
Description: In this monologue, the speaker critiques the practice of offering monetary incentives to employees to remain for a 90‑day period. He argues that paying…

21 Jan 2023 · 1 min

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In this monologue, the speaker critiques the practice of offering monetary incentives to employees to remain for a 90‑day period. He argues that paying staff to stay merely postpones inevitable turnover, similar to how incentivized customers eventually churn later. The core solution he proposes is to set clear, realistic expectations during the interview and onboarding process so that candidates understand the role and can self‑select for fit. When expectations align with reality, employees are more likely to stay organically, eliminating the need for financial “stay‑pay” schemes.

Chapters

With employee turnover being an issue, this is what people are doing. They're putting incentive plans in place. They're monetarily incentivizing employees to stay 90 days. Here's why I don't agree with this. If you have to pay somebody to stay 90 days, what do you think they're going to do after 6 or 12 months? I feel like what we're going to see is we're going to see turnover. It's just going to be delayed turnover. I've seen this on the customer side. When we incentivize customers to stay a certain amount of time, they just end up dropping off further along. And so I don't think that's actually helpful for employees. I think that the best thing that we can do to retain employees past 90 days is set the right expectations on the interview process when somebody's coming into the role. In that case, then we'll know, are they actually a fit for the role within a good amount of time? And so if we can set the right expectations that when someone comes in, the expectations that we set are the expectations that are delivered and reality matches those expectations, people will stay organically. We don't need to pay them to stay. Paying people to stay is not creating good behavior.