In a bold move, Chris Ronzio, CEO and founder of Trainual, is mitigating turnover by offering new hires $5000 to quit their jobs. With this policy, after a two week onboarding period, new employees are given a form with a simple yes-or-no option to stay or go on the condition they leave feedback for either decision.
Ronzio was inspired to implement this policy when a software developer, five days into training, told him that the job wasn’t what they thought it would be and that they were better off with another offer. This helped Ronzio realize just how much employee turnover impacted his business financially and culturally. The later the employee left, the worse the impact.
So, Ronzio was inspired to offer employees a meaningful incentive to leave sooner on their own terms with no hard feelings. During the two week onboarding period, the company’s investment in an employee is relatively light. If an employee decides to quit at the end of this period, new employees can quickly be substituted from the hiring pipeline, which improves the likelihood of finding a candidate committed to the company’s goals. It’s a winning proposition for everyone involved.
Since implementing the incentive, none of the 38 people hired have taken the offer and, as a result, Ronzio has proof for his theory that giving employees control of this decision helps companies find and retain top talent and cultivate a strong culture.