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September 9, 2014 by Marty Reaume

Why Paying Unhappy Employees $25K to Quit is Crazy

Guest Post by: Bill J. Bonnstetter

How is one company determining whether unhappy employees want to stick around? Dangling cold, hard cash in their face.

Riot Games, Inc. is offering up to $25,000 for employees to up and leave the company, no questions asked, within 60 days of employment if they are unhappy in their jobs.

The Santa Monica, Calif.-based videogame maker believes simply throwing money at the problem and shooing unhappy employees out the door will solve their talent apocalypse.

cost of not hiring the right employee for the job“Rather than allow mismatches to fester, we want to resolve them quickly,” Riot Games explained in their announcement. “This is good for the company, and good for the professional.”

Riot Games isn’t alone in this farcical proposal.

Their offer comes on the heels of similar enticements by Internet retailers Zappos.com and Amazon.com, which pay employees $2,000 and $5,000, respectively, if they opt to quit.

Problem is, these pay-to-quit strategies aren’t solving anything.

If Riot Games is willing to pay a sum commensurate to someone’s annual salary just to get rid of them, how much would they be willing to pay someone to ensure they’re a proper fit from the onset?

Riot Games is almost guaranteed to see a revolving door of employees deciding a sudden $25,000 windfall is worthier than being locked into a game of chicken, where each player — employee or employer — is waiting to see who will act first.

There are better ways to ensure people aren’t just sticking around for a paycheck.

Regrettably, Riot Games is treating the symptom and not the cause, and interestingly, could have the right person in their doors but merely in the wrong position.

If only Riot Games took the time to determine a proper fit from the get go — hiring shouldn’t be a personality contest — or worked with employees to see where their talents could be put to better use.

Hiring right the first time through a benchmark approach, and using validated assessments, is an inexpensive way to achieve maximum performance.

As we say here at TTI: If the job could talk, it would explain precisely what was necessary to achieve superior performance. We could ask it to tell us about the:

  • Knowledge a person needs
  • Personal attributes required to drive success
  • Rewards for superior performance
  • Hard skills vital for the job
  • Behaviors necessary to perform at peak levels
  • Intrinsic motivators

Because if companies like Riot Games don’t have a plan in place to bring in the right people who are energized and dedicated from Day 1, then they are simply throwing money out the window.

 


 
ABOUT THE AUTHOR
Bill J. Bonnstetter is chairman of TTI Success Insights and founder and chairman of Target Training International. He is considered one of the pioneers in the assessment industry because of his significant contributions to the research and study of human behavior. @bbonnstetter

Filed Under: Employee Recruitment, Executive Leadership, Hiring Tagged With: employee incentives, employee turnover, hiring the right employee

July 29, 2014 by Marty Reaume

What makes some businesses soar and others fail?

Guest Post by: By Dr. Ron Bonnstetter

What makes some businesses soar and others fail? The usual answer is economic conditions, poor market analysis or under capitalized.

building strong work teamsBut a strong business must start with a strong team. A team inspired by a common goal and a crystal clear purpose.

For several years now, Simon Sinek, consultant and author of Start with Why, has been explaining that our best employees do not work for a result but for a purpose. Their focus is not on what the business does, but on why they are there and their role in promoting a belief, a vision. He believes that much of our marketing and hiring practices need to be inverted.

For example, most employees can tell you “what” they do and even how they do it. But can they tell you “Why” they do their job? What is at the core of your business? What are the core values and beliefs that drive your organization? If you are having difficulty seeing the application and implication in business, just look at educational reform for perspective.

Since the implementation of No Child Left behind, our national focus has been on the what (higher test scores) and the how (more rigor), and we have forgotten the richness that only comes when we promote the why of education. The why component includes beliefs in the love of learning, the sharing of a teachers’ passion for a subject and the joy of accomplishments driven by mutual and shared visions.

Now back to the business world. The best businesses understand the power of shared beliefs. When a team has a shared set of purposes, they go the extra mile, not for overtime, but for a cause and mission that is bigger than any one individual. This is devotion verses salary.

The neuroscience behind this concept is also solid. We know that our newest brain, the neocortex, offers humans rational and analytical thought. It also allows us to verbally communicate through language development. This brain region serves us well as we handle the many daily encounters with the What’s and the Hows’ of life.

But recent neuromarketing research suggests that up to 95 percent of our decisions are made at the subconscious level. In other words, not the neocortex, but our much older and deeper brain region called the limbic system. This complex set of brain structures controls emotions, behavior, motivation and long term memory. Oh, it also has no capacity to support language.

As a result, many of our behaviors, are driven by this paleomammalian brain. These driving beliefs are hard to verbalize, but they are driving the bus and helping us decide what is important.

In summary, if you promote a product, whether education or your business, by focusing on the what and how features, you will fail to capture the heart of your employees or your customers. Remember that the why behind our actions is the most powerful influence you have at your disposal. The next time someone ask you “What you do?” Start by passionately explaining “why” you care enough to do what you do.

I wonder why I wrote this?

To read other posts about this topic, click here.

Filed Under: Employee Development, Executive Leadership, Team Performance Tagged With: building strong teams, employee incentives, hiring the right employee, teamwork

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