Amazon founder Jeff Bezos introduced a cutting-edge program at the tech giant in 2014 with the intention of retaining loyal employees who wanted to progress their careers with the company.
The billionare made ₹4.1 lakh offer to employees who quit from the company. They provided the ‘Pay to Quit’ option in an effort to retain a dedicated and driven staff.
Bezos stated in a letter to shareholders that the corporation pays its employees to leave every year. Today’s offer increases to $5000 from the initial $2000 amount. ‘Please Don’t Take This Offer’ was also included on the offer. The letter stated, “We want them to stay”.
The creator of Amazon, however, gave an explanation for his choice to offer the temptation, stating that the intention is to “get people to stop and consider what they really want.” An employee who refuses to leave their current position is eventually detrimental to both the organization and the worker.”
Before the creator of Amazon accepted the idea, it was first introduced by an internet retailer called “Zappos” in Los Angeles.
Behavioral economist Uri Gneezy called the tactic “remarkably effective.” He stated in the Harvard Business Review that the organization can provide money to departing employees who have no motive to express their genuine feelings.
This strategy naturally makes those who stick around more motivated. He remarked, “If they turn down the offer, they invest it in their future with the company, which increases commitment and productivity.”
