Chris Ronzio, CEO of software company Trainual, says that if a new hire isn't happy at his company, they should quit. Taking that philosophy a step further, he will pay them $5,000 to leave the company.
According to Society for Human Resource Management, he is willing to do this despite 4.5 million people quitting their jobs in November 2021. Many have dubbed it the great resignation. But Ronzio says that his way theory makes life easier for everyone involved.
If a new hire feels less than enthused about the job, they likely shouldn't be there. Ronzio says it's more than a morale problem; it opens the company up to the costly hiring process again if the employee quits after a few months.
There's also the factor of added responsibilities that the employee takes on the longer they stay with the company. When they leave, it puts the company in a bad position trying to reassign the employee's tasks—potentially creating chaos on essential projects for the company.
The chaos isn't limited to just the projects; there are also budgetary concerns. Training can be expensive. And investing a ton of money into a candidate who isn't happy with the company will lead to the organization needing to spend money on recruiting another person to fill the void and the other expenses that go into hiring.
Two Weeks Notice
Ronzio says that while his theory is novel, more companies should look at it. He explains that with the way the employment market is today, both sides need to move fast to determine whether it is a good fit or not.
The $5,000 offer helps with that decision on the employee's side.
If, after two weeks, the employee isn't happy with the company, quitting is made easy. They are given the option to take the money and continue looking for a job where they will find happiness. And Trainual can build a team that loves the company and want to further its mission.
There is a psychological reason for an employee to pick working with a company over fast cash, according to Ronzio. If the employee chooses to stick with an organization, it's because they see long-term potential with the employer.
Since the experiment launched in May 2020, Trainual has hired 38 employees. According to Ronzio, none of the new hires have taken the money to quit.
However, he notes that the amount was initially only $2,500. After considering that a person making $80,000 a year might think of the money as not being enough, they doubled it.
He stands behind the policy. When he was asked why he thinks it's crucial, Ronzio answered that it places the power back with the employees.
With so many people quitting their jobs, companies are looking for ways to retain employees. And learning why people decide that leaving a job is better than trying to change an organization from within.
According to Business Insider, the answer might be easy to find. In the same report that said 4.5 million people left their jobs in November 2021, it also noted that more places were hiring, and open jobs fell significantly. They theorize that means instead of a "Great Resignation" happening, the more appropriate designation would be the "Great Job Switch."
Dan Price agrees with that assessment. Price is the infamous CEO of Gravity Payments, the company that upped employees' minimum wage to $70,000 a year and cut his own salary to the same amount. The company saw revenues hit highs and productivity surge.
In a statement, Price said companies are reaping what they have been sowing for the last decade or more. He wrote in part, "Companies that are investing in employees, companies that are following that age-old norm that we know is the right thing to do, investing in your people, they're not experiencing The Great Resignation. And so, some people have called it 'a great reckoning.'"
Ronzio seems to agree and plans to keep his quit after 'two weeks and get $5,000' policy in place for the foreseeable future.