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An Arizona company has found a unique way to find and keep solid workers: pay the not-so-good ones to quit.
Chris Ronzio, CEO of software company Trainual, pays new employees $5,000 to resign if they are not satisfied or uninspired in their positions after two weeks.
“With today’s market, hiring teams have to move quickly to assess candidates and get them through the process to a competitive offer, so it’s impossible to be right 100% of the time,” Ronzio told Business Insider.
“The offer to quit allows the dust to settle from a speedy process and lets the new team member throw a red flag if they’re feeling anything but excited.”
If a new hire leaves after two weeks, it’s less disruption to the business than if the unhappy employee quits at a later date, added Ronzio.
He said that offering employees financial incentives and the power to essentially “fire the company” plays a huge factor in building an inclusive culture.
“It’s a powerful thing for them to turn down the cash, opt-in, and commit,” he explained. “And it sets the stage for a great working relationship.”
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Of the 38 people the company hired since the pay-to-quit policy was implemented in May 2020, no one has taken the offer.
Employees don’t receive any sort of incentive for quitting later in their tenure with the company.