Zappos; grasping the value proposition of a corporate culture

This article from Business Week shows how inexpensive and how effective business process design can be. 

“Apparently, when Zappos hires new employees, it puts them through an intensive four-week training program, immersing them in the company’s culture, strategy, and processes. Then, about one week in, Zappos makes what it calls “The Offer,” telling newbies, “If you quit today, we will pay you for the amount of time you have worked, plus a $2,000 bonus.” A BusinessWeek reporter interviewed Hsieh recently. He says only 2% to 3% of people take the offer. The other 97% say no deal—they choose the job over the instant cash. [Note: The bonus amount increased by $1,000 since the Bill Taylor piece.]

… the practice clearly says something about Zappos’ confidence. How many of us run companies where, if we offered new hires a week’s salary plus $2,000 to leave, we would enjoy a 97% stick rate? Zappos is betting real money that the enthusiasm and esprit de corps of its enterprise presents a compelling value proposition to employees. I’m impressed by what the practice says about the intensity of Zappos’ commitment to protecting and advancing its workplace environment. It is one thing to tell employees: “Our corporate culture is our brand”— it’s another thing to cash out recent hires who do not reflect that culture.”

I find this level of clarity, and this type of innovation to be breathtaking. Not breathtaking enough for you? Well take this self-test:

1) when was the last time your final job interview took place over a whole week?

2) did your current employer or previous employer deeply immerse you in its: corporate strategy, corporate culture, and work processes – not to mention a functioning version of the work environment?

3) If you answered yes to question two, did they give you a week’s salary and a chance to vote with your feet, after that? 

 

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s