Why Zappos Pays New Employees to Quit–And You Should Too: The Science of Motivation

Kazuki Nakayashiki

Hatched by Kazuki Nakayashiki

Sep 20, 2023

4 min read

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Why Zappos Pays New Employees to Quit–And You Should Too: The Science of Motivation

In the business world, employee motivation is a crucial factor in driving productivity and success. Many companies implement various strategies to keep their employees motivated and engaged. One company that takes a unique approach to this is Zappos, an online shoe and clothing retailer. CEO Tony Hsieh and his colleagues have introduced a rather unconventional practice – they pay new employees to quit. This might sound counterintuitive, but there is a method to their madness.

Zappos offers what they call "The Offer" to new employees after about a week of working at the company. They say, "If you quit today, we will pay you for the amount of time you've worked, plus we will offer you a $1,000 bonus." This might seem like Zappos is trying to get rid of their employees, but that's not the case. The purpose of this offer is to identify those who are truly committed to the company's mission and values. If someone is willing to take the money and run, it indicates that they don't have the sense of commitment Zappos is looking for.

This practice also serves another purpose – it saves the company from investing time and resources into individuals who may not be the right fit. By offering a financial incentive to quit, Zappos is essentially paying to learn sooner rather than later. Approximately ten percent of new call-center employees take the money and run, which helps Zappos weed out those who are not fully committed to the company's goals.

Zappos understands that in order to create a memorable company, they need to fill it with memorable people. They believe that companies don't engage emotionally with their customers – people do. By hiring individuals who are passionate about their work and committed to the company's mission, Zappos is able to create a workforce that goes above and beyond to deliver exceptional customer service.

Now, let's shift our focus to the science of motivation. Motivation is a crucial aspect of achieving our goals and staying on track. It is what drives us to take action and make progress. However, motivation is not a constant state – it fluctuates and can sometimes dwindle. Understanding the different types of motivation and how to sustain it is key to achieving long-term success.

There are two types of motivation – intrinsic and extrinsic. Intrinsic motivation comes from within us and is driven by our personal interest or enjoyment in an activity. When we do something we love, the activity itself brings us pleasure, and this leads to sustained behavioral change and improved well-being. On the other hand, extrinsic motivation is when the desired outcome is separate from the activity itself. This type of motivation is more likely to wane over time.

The American Psychologist journal published a study by Richard Ryan and Edward Deci, highlighting three innate psychological needs that enhance self-motivation and mental health: competence, autonomy, and relatedness. When we feel competent in a behavior, through feedback, communication, or rewards, our intrinsic motivation is strengthened. Relatedness, on the other hand, is more relevant to extrinsic motivation. If a behavior is valued by others, such as a manager or client, we feel a sense of connectedness, which internalizes the extrinsic motivation.

Setting the right goals is also crucial for sustaining motivation. Goals that are too easy or lack suitable rewards can lead to a lack of drive to pursue them, even if they are achievable. It's important to choose goals that we care about and feel committed to. Intrinsic motivation will naturally occur when we have a genuine interest in the goal.

Self-reflection is another important aspect of motivation. Taking care of ourselves and dedicating time to activities like reading and exercise can contribute to our overall motivation. Self-Determination Theory, a popular school of thought in motivation studies, emphasizes the importance of self-regulation. This theory highlights the process of internalizing social values and transforming them into our own values and self-motivations.

To sum it up, motivation is not a one-size-fits-all concept. Different individuals are driven by different factors, and understanding what motivates us personally is crucial for sustained success. Zappos' unique approach to employee motivation highlights the importance of commitment and passion in the workplace. Incorporating elements of intrinsic and extrinsic motivation, along with self-reflection and goal-setting, can help individuals and organizations stay motivated and achieve their desired outcomes.

Three actionable advice to boost motivation:

  1. Find your passion: Choose goals and activities that align with your interests and values. When you genuinely care about what you're doing, intrinsic motivation will naturally follow.

  2. Set meaningful goals: Ensure that your goals are challenging yet achievable and offer suitable rewards. Having a clear aim in focus will help sustain motivation and drive.

  3. Practice self-reflection: Take time for self-care and self-reflection. Engage in activities that contribute to your overall well-being and regularly assess your progress and motivation levels.

In conclusion, understanding motivation and implementing strategies to sustain it is crucial for success in both personal and professional endeavors. Whether it's paying employees to quit or finding intrinsic motivation through meaningful goals, finding what works for you and consistently taking action is key to staying motivated and achieving your desired outcomes.

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