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Zappos Tells New Employees: Please Go Away

May 21st, 2008 @ 8:59 am

9 Comments

Tags: Employee, Zappos, Taylor, Call Centers, Customer Relationship Management (CRM), Retail, It Operations, Enterprise Software, Software, Lisa Everitt

Online retailer Zappos is getting attention and kudos for a unique take on how to hire employees who “get it.” At Harvard Business Publishing, Bill Taylor reports that after a week of high-intensity training, Zappos call center employees get The Offer: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.”

Why? Taylor thinks the practice weeds out the uncommitted.

It’s hard to describe the level of energy in the Zappos culture—which means, by definition, it’s not for everybody. Zappos wants to learn if there’s a bad fit between what makes the organization tick and what makes individual employees tick—and it’s willing to pay to learn sooner rather than later. (About ten percent of new call-center employees take the money and run.)

With 1,600 employees, 1,500 brands, $800 million in sales last year, and core values that include humility, growth, and a mandate to “create fun and a little weirdness,” Las Vegas-based Zappos and its Twitter-loving CEO Tony Hsieh are doing more than just selling tons of shoes. Zappos employees say they have fun talking to customers and enjoy learning new things. “This is not some place that you wake up and you’re dreading,” says Derek, whose previous gigs include a stint as a lucha libre wrestler in Mexico.

What’s the point of this $1,000 parting gift? Loyalty? Passion? Weeding out people motivated by money? Would you take this bonus? Would you offer it to new employees? Hit the comment button and let me know what you think.

A Denver-based business writer, Lisa Everitt is a veteran of daily and weekly newspapers and trade magazines, including The Natural Foods Merchandiser, Rocky Mountain News, Inter@ctive Week, San Francisco Business Times, and the Peninsula Times Tribune.

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  •  
    jhipsky05/22/08 Report as spam
    1

    Cat out of the bag

    Granted that the 10% of the people who take the money probably won't ever read this but, making that kind of practice public could reduce its effectiveness and attract people who need a grand or two over a week.

  •  
    fttmeditator05/22/08 Report as spam
    2

    But It Could Be A Cool Way To "Bob" the Cat!

    The gist of this BNET posting is to better access committed employees so what Zappo may very well have struck on is a two-fold success; (1) craft the incoming profile of potential employees who are committed and those who would be the 10% to bail out giving Zappo HR insight that goes way beyond resumes and (2) begin to move the bar of success in Zappo's environment in the positive direction thereby raising their success factor all the more. Cool!

    FTT

  •  
    Orginalnaplx05/22/08 Report as spam
    3

    RE: Zappos Tells New Employees: Please Go Away

    good way to see who wants 2 be in it 4 the long run

  •  
    Robin77705/22/08 Report as spam
    4

    Gimmick

    This is a gimmick. Wait until the unemployment rate in Las Vegas declines and see if Zappos continues this.

    Paying people to go sounds like a neat trick, but it really indicates that the company lacks confidence in its hiring, training and management practices. A better tactic is to make customer service people feel that so important the company cant do without them. That strategy has been the most effective anywhere.

  •  
    LisaEveritt05/22/08 Report as spam
    5

    I Think They Do That Too

    Watch the video for some examples.

  •  
    ndlicht, Neil Licht, Answers Hiring right tools05/22/08 Report as spam
    6

    RE: Zappos Tells New Employees: Please Go Away

    Frankly, if you deploy a traits assessment prior to hiring, you wont have to weed people out - its more reliable and a lot less expensive as well.

    Its simple- do a behavioral traits assessment on the top performers. That's a behavioral traits assessment, NOT PERSONALITY traits assessment. This reveals precisely what traits your top performers have regarding how and why they are so good at what they6 do FOR YOU in YOUR JOB SETTING. Revealing this creates accurate hiring measurements for success at your job, not general success at the type of job you are offering. It also facilitates a scientific job match process for finding a top performer who will flourish in thew job and stay long term.

    Use the assessment results as a benchmark. There are some excellent on line tools available for accomplishing this process, running potential hires through the assessment on line and clearly measuring them against the benchmark. The results reveal what can not be seen in interviews - whats under the tip of the iceberg of that person, their core values and behavioral traits. No on the job testing or validating needed!

    Now hire against it. You'll spend a lot less on paying new hires to leave because most will be perfectly matched to the job and deliver amazingly well on the job.

    Neil Licht
    answers@ucanpreventbadhires.com

  •  
    llambert05/22/08 Report as spam
    7

    Caution on treating testing as the answer

    While testing is a highly valid way of predicting performance on the job, there are two things of concern in this post.

    First, there is no such thing as a behavioural "trait". A trait is an enduring hereditary factor such as a personality variable (eg. extraversion). You can test for certain behavioural tendencies and this is a valid thing to do but what concerns me is that if you are using this terminology you are perhaps mis-understanding (and mis-using?) certain tests.

    The second point is that, at best, psych tests predict less than 40% of the variability in performance on the job. That is about as good a prediction as you'll get from any test, so using additional means to ascertain the behaviours & importantly, the attidutes and motivations of potential employees is highly advisable.

  •  
    Karen J.05/24/08 Report as spam
    8

    RE: Zappos Tells New Employees: Please Go Away

    I think the headline is misleading - it sounds to me like Zappo's is really saying "It's OK to go away, if this job isn't a good fit for you" rather than "Please! go away!"

    Personally, if I had found (and gotten) my Dream Job at Zappo's Call Center, I'd rather keep it than take a cash buyout, and start the job hunt all over again!
    If it turns out, after the rubber hits the road, that it's really NOT my dream job, for whatever reason, the $1000 gives me permission to say so out loud to HR, and encouragement to go ahead and keep looking.

    The fear of "letting-the-cat-out-of-the-bag" is, presumably, mitigated by many other parts of the pre-employment process - those who are clearly only there for the $grand (and don't otherwise fit the profile and the culture - "tested for" or not) shouldn't have made it that far, anyway.

    Considering the much-discussed cost of unhappy or unmotivated front-line CS workers, I think this is brilliant! You have a fixed, budgetable cost (~$10,000 per 100 new hires) to purging the inevitable hiring/accepting mistakes; everyone still there for Week 2 is determined to do a great job - even if only to justify to themselves why they *didn't* take the money and run; and former employees still have a very positive impression of the company (and remember, they "tell 3 friends, and they tell 3 friends...". It's really viral job-marketing!)

    Win-Win-Win!

    Karen J.

  •  
    LisaEveritt05/26/08 Report as spam
    9

    That's it exactly

    Given what a PITA the job hunt is, finding a good one is worth way more than a thousand dollars.

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