The ‘Great Resignation is real,’ challenges will accelerate over time: Meetup CEO
David Siegel, the CEO of Meetup, a platform designed to find and build local community, argues ‘it’s incumbent on companies to figure out how to hire people much faster.’
An Arizona CEO is offering a $5,000 bonus for new hires to quit after just two weeks into their new jobs as part of a unique approach to staff retention as a "great resignation" sweeps the American workforce.
Chris Ronzio, CEO of the Arizona-based software company Trainual that helps small businesses onboard, train and scale teams, is taking a unique approach to the nationwide issue of worker retention by instead paying new hires a $5,000 bonus to quit at the two-week mark into their new jobs.
"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 recently told Business Insider. "The offer to quit allows the dust to settle from a speedy process and let the new team member throw a red flag if they're feeling anything but excited."
A RECORD 4.5M AMERICANS QUITE THEIR JOBS IN NOVEMBER AS ‘GREAT RESIGNATION’ PERSISTS
He explained his approach as a recent report from the U.S. Bureau of Labor Statistics showed that a record 4.5 million American workers quit their jobs in November, continuing an eight-month upward trend. That accounted for about 3% of the American workforce. Many workers cited the pandemic for their reasoning, as some want better work and others listed COVID-19 or childcare concerns.
Ronzio’s strategy of paying people to quit seems to fly in the face of other companies who are offering higher wagers, hiring bonuses or education opportunities as part of their efforts to attract and retain competitive talent. His approach holds the hiring team accountable – because there’s a cost added to selecting the wrong candidates – and aims to develop a stronger work culture by giving employees the power to "fire the company," Ronzio said.
At the two-week mark, there’s also less loss at risk compared to offering the monetary incentive to quit later when the company has invested more in training the employee.