Zappos motivates its employees by following a hierarchy system called “Holocracy”, in which the differences between employees and managers are not easily distinguishable. The CEO, Tony Hsieh, asked the managers to distribute authority to their teams and get rid of their titles. The CEO himself has a salary of just $36000 and his desk is the same size and in the same room as everybody else’s. At the same time as asking managers to decentralize their work, Hsieh asked team members to take ownership of their own work. The results were amazing. By distributing authority and ownership over employee’s work, employees find the time and space to be creative and focus on long term projects that had in their to-do list for months.
The recruiting process at Zappo’s shoe company is an even more interesting case study. All employees have to pass through two interviews. The one assesses whether they are competent for the job and the second assesses whether they fit the environment and ethics of the company. In addition, each prospective Zappo’s employee, even a new CFO, has to go through a five week training process, which include a two week period of talking to costumers on the phone. Although this is a very expensive recruiting process, it pays back as the company makes sure that everyone working in it is not only competent is but also in line with the firm’s ethics, mission and vision.
After this 5 week training process the company offers the trainees 3000 dollars to leave the company. The ones who accept the offer would have not been passionate about their job in the first place and the ones that reject the offer enter the firm committed and loyal willing rejected the offer to work for the firm. By taking the risk and following such innovative and expensive human resources management, Zappo’s attracts the best employees, who it then trains and makes sure they give their 100%.