Companies have to deal with enormous mobility in the labor market, where employees can choose from many vacancies and therefore have many options.
As an employer, you can increase wages, hand out bonuses, offer training, offer space with flexible working hours or come up with other attractive fringe benefits to bind employees.
An American software company tried something else. Trainual, an Arizona-based software company that helps small businesses recruit, train, and scale teams, has a distinct tactic.
New employee is offered a departure bonus after 2 weeks
The company gives new employees the option to resign after two weeks, with a $5,000 departure bonus, CEO Chris Ronzio told Insider. He says the strategy helps retain top talent in the industry and maintain a strong corporate culture.
“In today’s market, hiring teams must act quickly to assess candidates and make a competitive offer. It is impossible to always make the right choice,” says Ronzio.
The offer to resign with a bonus within two weeks gives employees a chance to reconsider their choice, once the dust settles from the fast-track hiring process. “If the new team member is anything but enthusiastic, this employee can indicate that,” says Ronzio.
He introduced the departure bonus for new employees in May 2020. At the time, the company offered $2,500 to quit after two weeks, if employees had any sense of doubt. None of the 38 people hired since then took up the offer. The company recently increased the amount to $5,000 based on the average salary offered by Trainual. “We thought that if someone is making $80,000 or $100,000 a year, maybe $2,500 isn’t significant enough,” Ronzio says. “They can decide to stay while looking for another job because they earn more. We have adjusted the amount with that in mind.”
Also incentive for HR department
Ronzio says as an employer he is responsible for building an inclusive culture. He believes that giving employees a financial incentive to say “no” helps build a strong corporate culture. “Saving money is a powerful gesture to step in and commit. This sets the tone for a great working relationship,” he says.Conversely, the decision to remain employees does not result in a bonus. “Those who refuse the $5,000 at this point in their careers with us are missing out on something ‘extra’ because they believe that staying with us is worth much, much more in the long run.”
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