How a “Pay-to-Quit” Strategy Can Reveal Your Most Motivated Employees

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How a “Pay-to-Quit” Strategy Can Reveal Your Most Motivated Employees
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To find out, offer them money to quit.

Companies often need to reduce the size of their workforce. But how do managers decide which employees to let go and which to keep?

Amazon made its program available to warehouse workers for years, but at the beginning of 2022, because of a tightening in the labor market, the companyfor warehouse workers and now only offers it to graduates of its Career Choice upskilling program. Everybody wins with this strategy. It allows managers to identify which employees are genuinely motivated and which are not; it allows unmotivated employees to make an amicable departure with money in hand; and it allows motivated employees to genuinely demonstrate their commitment.

Company leaders recognized that they needed to figure that out in one particularly important context — when they were considering which employees to name as partners. Why? Because when the company chooses who to promote, it is declaring them highly competent and valuable, which immediately makes them interesting to other companies, who often begin efforts to lure them away.

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