Would you pay a new employee $1,000 to quit? Zappos does and it works!

In a recent blog post on Harvard Business School's website Bill Taylor writes about an innovative online shoe retailer, Zappos. (They have four million shoes for customers to choose from and expect to do $1 billion in sales this year.) What makes this company interesting is not only their product selection, but also that they have built their company on providing outstanding customer service.

In order to ensure their that their 1600 employees follow through on the company's credo of service, each new hire undergoes a rigorous training program and is given a tempting offer of $1,000 to quit after the first month. Taylor says,

"When Zappos hires new employees, it provides a four-week training period that immerses them in the company's strategy, culture and obsession with customers. People get paid their full salary during this period. After a week or so in this immersive experience, though, it's time for what Zappos calls 'The Offer.' The fast-growing company, which works hard to recruit people to join, says to its newest employees: '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.' Zappos actually bribes its new employees to quit!"

According to Taylor, about 10 percent actually take the cash. However, it enables Zappos to determine if the new hire has the sense of commitment they are looking for in an employee. Since its inception, the CEO has raised the quit-now bonus from $100 to $1,000, and it may go higher as the company grows.

Taylor ends his post with the following,

"If you want to create a memorable company, you have to fill your company with memorable people. How are you making sure that you're filling your organization with the right people? And how much are you willing to pay to find out?"

Two thought-provoking questions every business owner should consider.