‘Pay to Quit’ Jeff Bezos offered ₹4 lakh to Amazon employees to resign: Report
₹4.1 lakh. They offered the 'Pay to Quit' option in order to keep a committed and motivated workforce, according to a report published by MoneyControl. In his letter to shareholders, Bezos said that the company annually offers to pay its associates to quit.
“The offer started with $2,000 and then it goes up to $ 5,000 today. The offer also read ‘Please Don’t Take This Offer'. We want them to stay," the letter read.
However, the founder of Amazon explained his decision to present the temptation, saying, "The idea is to get people to stop and consider what they really want. An employee who stays somewhere they don't want to be is ultimately bad for both the company and the individual." Originally, an online retailer based in Los Angeles ‘Zappos’ introduced the idea before it was adopted by Amazon's founder, MoneyControl reported. Uri Gneezy, a behavioral economist, found the strategy “remarkably effective".
In the Harvard Business Review, he said that the company can incentivize dissatisfied employees who have no reason to disclose their true sentiments by offering them money to resign. “Those who stick around are, naturally, more motivated as a result of this tactic. If they decline the offer, they invest it in their future with the company," he said, adding that this boosts productivity and commitment.
Last year, the tech giant could not announce the program due to labor shortages amid a global e-commerce surge prompted by the Covid-19 pandemic. However, the ‘Pay to Quit’ offer is only available to graduates of Career Choice. Milestone Alert!
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