Staffing Industry Insurance: An Unusual Employee Retention Plan
A shareholder letter from Amazon CEO Jeff Bezos released in April explains their decision to pay employees to leave the company. This counter intuitive employee retention plan is designed to actually increase productivity and prosperity in Amazon’s fulfillment centers. The Pay-to-Quit program is designed to alleviate strain on the workforce by encouraging uncommitted and disgruntled employees to end their own employment with the company. By providing a safety net to fall back on in the pursuit for a new job Amazon believes that unmotivated workers will take the offer and move on, leaving only those workers who are dedicated to their success with the company.
Once a year Amazon offers employees at their packing and shipping fulfillment centers the ability to walk away with thousands of dollars in hand. The program initially offers an employee $2,000 the first year; with an additional thousand added each year up to $5,000. Bezos states his intentions are to encourage workers to reflect upon their values and desires before making their commitment with the company understanding that workplace health and morale are important to overall business success.
As unusual as Amazon’s approach may seem, there is a substantial amount of rational supporting their decision. Savvy recruiters and human resource personnel understand the importance of strong employee retention and morale. Businesses succeed on the basis of their workers and promoting strong internal corporate culture is proving essential in the changing business climate. Increasing pressure is being placed on staffers to mediate the right fit between employer and employee. Happy and healthy workers are less likely to cause workplace disturbance and are also less likely to instigate legal action against their employer or coworkers.
At World Wide Specialty Programs we offer the best staffing industry insurance coverage available. Our policies represent an array of industry specific coverage including Employment Practices Liability and Personnel Consultant Liability. Call us today to at (877) 256-0468 ensure the best coverage for your staffing industry clients.