Zappos pays employees to quit early; keeps the dedicated ones

May 22, 2008 @ 10:15 pm

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Zappos has an insanely good reputation among online shoppers for providing excellent customer service. But how does a company as large as Zappos continue to offer great customer service time and time again while other companies struggle to do so?

Here’s the secret: Zappos pays its employees to quit!

It’s a hard job, answering phones and talking to customers for hours at a time. So when Zappos hires new employees, it provides a four-week training period that immerses them in the company’s strategy, culture, and obsession with customers. People get paid their full salary during this period.

After a week or so in this immersive experience, though, it’s time for what Zappos calls “The Offer.” The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit!

Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for.

That’s the first time I’ve ever heard of a company doing anything like this.

And it’s funny, but it’s so true. Zappos really does have an awesome “wow” factor when it manages to deliver shoes next-day even though you chose standard delivery.

This company is fanatical about great service—not just satisfying customers, but amazing them. The company promises free, four-day delivery. That’s pretty good. But most of the time it delivers next-day service, a surprise that leaves a lasting impression on customers: “You said four days, but I got them the next morning.”

Read more about Zappos’ amazing business practices over at Harvard Business Publishing.

3 Comments

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  • haemin says:

    that’s awesome – i should order from zappos more. on a somewhat-related note: i found out yesterday that Netflix has awesome customer service/tech support (i had an issue with streaming movies)! the guy was actually knowledgeable, friendly, AND spoke in normal english words. not tech-speak. actually, it’s a miracle he even spoke english at all, come to think of it. anyway netflix is awesome! so is zappos! hurrah!

  • haemin says:

    and man your site is so much faster! i kind of hated commenting before b/c of the wait. but not anymore!

    • Doobybrain says:

      you can thank the new server. :)

      there’s still the time limit between consecutive posts, but i think i want to leave that setting there to combat comment spam.

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