Tom KrieglsteinFounder, Global Keynote Speaker, Swift Kick Leadership · Founder and Award-Winning Keynote Speaker at Swift Kick Leadership

Paying people to quit Zappos' 4 step plan

Name: Paying people to quit Zappos' 4 step plan
Uploaded: 2024-05-28T01:28:58+00:00
Duration: 59 s
Channel: Tom Krieglstein
Description: In this brief presentation, Tom Krieglstein explains Zappos' unconventional practice of offering employees a cash payment—commonly $2,000—to quit their…

28 May 2024 · 1 min

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In this brief presentation, Tom Krieglstein explains Zappos' unconventional practice of offering employees a cash payment—commonly $2,000—to quit their job. He outlines a straightforward four‑step process for any organization that wants to adopt a similar quit‑incentive program: (1) define the incentive amount that fits the budget, (2) set clear terms and a specific time window for the offer, (3) communicate the offer transparently to new hires, and (4) monitor and analyze feedback from those who accept or decline the incentive. The talk emphasizes flexibility in the amount and timeline, and the importance of data‑driven adjustments based on employee responses.

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$2,000. That's how much Zappos is willing to pay you, not as a signing bonus, but to quit your job. Now, I know what you're thinking, Tom. Should I do this within my company? Great question, Tom. Thanks, Tom. Yes, and here is a simple process. The first step is to define the incentive and decide on the amount that makes sense for your budget. It doesn't have to be 20, $25,000 or $2,000. It could be as little as $200. The second step is to set the terms. Make it very clear the timeframe during which this offer is valid. Is it 30 days? Is it a week? Is it 60 days? The third step is to clearly communicate this. Make sure every new hire understands the offer and the proposal and the timeline. The fourth step is monitor the feedback. Collect the feedback from those who do accept or deny and see why and why not.