Zappos: The Shoe Guy

We were presented a company which focused its business efforts on employee benefits and satisfaction. The CEO, Tony Hsieh, offers a monetary incentive ($2000) after training sessions for employees to leave the company. This is meant to filter out all of the money lovers (i.e. the people who were only interested in their salaries) and retain the employees who actually are motivated by the job description of the company as well as its long term strategy of Customer Satisfaction. Hsieh explains that when he started up Zappos, he didn’t have enough money to pay himself. He had all the determination and perseverance to set himself apart for the people who abandon their dreams just because they could not acquire enough capital to overcome the natural barrier to entry for any new firm starting up in an industry. Hsieh also works alongside his employees (humble) and gives many employee benefits (healthcare).

However, I feel that in the long run, the $2000 tactic will prove to be counter-intuitive (due to word of mouth by current employees to reject the offer and reap the employee benefits thereafter). I feel that the company will need to employ a new tactic in the hiring process.

 

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