An Arizona CEO is offering a $ 5,000 bonus for new employees to quit after just two weeks in their new jobs, as part of a unique approach to retaining employees as a “major resignation” sweeps over the U.S. workforce.
Chris Ronzio, CEO of Arizona-based software company Trainual, which helps small businesses on board, trains and scales teams, takes a unique approach to the nationwide issue of employee retention by instead paying new employees a $ 5,000 bonus to quit in two weeks. stand out in their new jobs.
“With today̵[ads1]7;s market, hiring teams need to move fast to evaluate candidates and get them through the process of a competitive offer, so it’s impossible to be right 100% of the time,” Ronzio recently told Business Insider. “The offer to quit allows the dust to settle from a quick process and allows the new team member to throw a red flag if they feel anything but excited.”
RECORD 4.5 M AMERICANS APPLY TO THEIR JOBS IN NOVEMBER WHICH ‘BIG RESIGNATION’ CONTINUES
He explained his approach as a recent report from the US Bureau of Labor Statistics showed that a record 4.5 million American workers quit their jobs in November, continuing an eight-month upward trend. It made up about 3% of the U.S. workforce. Many workers cited the pandemic for their reasoning, as some want better work and others raised concerns about covid-19 or child care.
Ronzio’s strategy of paying people to quit seems to meet with other companies offering higher stakes, employment bonuses or educational opportunities as part of their efforts to attract and retain competitive talent. His approach holds the hiring team accountable – because it is a cost added to choosing the wrong candidates – and aims to develop a stronger work culture by giving employees the power to “shoot the company,” Ronzio said.
At the two-week limit, there is also less loss at risk compared to offering the cash incentive to quit later when the company has invested more in training the employee.
“Those who refuse $ 5,000 are missing out on something ‘extra’ at this point in the timeline because they believe the long-term value of staying with us is worth much, much more,” Ronzio said, explaining his payment for to stop. strategy. “It’s a powerful thing for them to reject the money, sign up and commit – and it lays the foundation for a good working relationship.”
He first launched the incentive in May 2020, setting the bonus to end at the two-week mark at $ 2,500. Ronzio said none of the 38 employees hired since then have followed up on the offer to quit. His company recently increased the amount offered to $ 5,000.
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“We looked at our average salary when we considered changing the amount and finally realized that if someone earns $ 80,000 or $ 100,000 a year, then $ 2,500 may not be significant enough,” Ronzio said. “They can decide to stay while looking for another job because they want more to stay. So we adjusted the number with that in mind.”
According to their website, Trainual has served thousands of businesses in more than 120 countries since January 2018 and “aims to arm any small business with a playbook for scale.”