HR Lessons from Amazon’s pay to quit program

Many MNCs have HR practices that have served as guidelines for professionals over years. Some of these case studies have been referred to for how effective they were when put into practice. Some of these practices are by Amazon, which has served as great examples and intriguing lessons for students who wish to pursue an Executive MBA in India.

Amazon, the world's largest online platform, threw traditional industries into an array and transformed the online retailing and buying market, making Amazon everyone's go-to store. To allow this seamless operation, mammoth-sized warehouses were involved which were located all across the world and took engagement of innumerable employees. 

While, to this date, a lot is done to engage employees and ensure their welfare, Amazon has a dedicated program that is offered to its employees every year. In its ‘Pay to Quit’ program, Amazon has agreed to pay employees $10,000 and three-month’s salary to quit the company and start a package-delivery business. However, once this offer is accepted, the employee can never work at Amazon again. 

Recruiting the right candidate is a long process that demands both time and money. It surprises everyone as to why would an organization offer an employee a quitting bonus after the investment is made. The amount expended in recruiting would be like a drop in the ocean compared to the resource drain owing to the burden of keeping an unhappy and unengaged employee for a period of time. It is losing out on the present but securing a better future. Amazon keeps a long-term perspective and understands that staying at a place where one doesn’t want to be isn’t healthy neither for the employee nor for the company. The goal is to allow the employee to think about what they really want to make sure that they choose Amazon with a content mind.

Employee engagement comes down to important things: the commitment to stay and voluntary effort. While ‘Pay to Quit’ doesn’t motivate employees to work harder, it addresses the problem of one’s commitment to stay. When an employee declines the money and chooses to stay, it is obvious that they are committed to their work and the organization. While this program doesn’t specifically reward great talent, it does help in getting rid of bad talent impromptu. 

The overall holistic talent strategy should, however, focus on engagement and retention of human talent. Amazon has confirmed that employees have taken the option of quitting with a bonus. This implies that even employees do not want to engage in a place where they aren’t happy. 

Handling human talent is an impeccable task. It requires precision, strategy, and expertise to weed out the not-so-good candidates and hire good talent. Every organization needs the backbone to grow sustainably. Have you ever thought about the professionals who make an organization's backbone? When an organization provides a balanced and rewarding environment for its personnel, it operates efficiently. Companies use professionals who specialize in human resource management or executive management to ensure the effectiveness of their job in order to achieve this aim. A person who has earned a degree from one of the Top B Schools in Kolkata is considered to have a solid understanding of the principles of management. However, combining practical experience with theoretical knowledge allows one to bring those principles to life and become a professional. Amazon Web Services (AWS) is the world's leading cloud computing provider and is a vibrant and fast-developing business within Amazon. AWS HR is also looking for dynamic self-starters that have completed Executive MBA or master’s studies in HR or comparable professions.

Pursuing an Executive MBA will definitely allow guidance in the same direction. An executive MBA program trains you to lead a team and work in harmony if you’re in office culture.  Amongst many B- Schools that offer MBA programs, Bengal Institute of Business Studies is one of the Top B Schools in Kolkata that offers an Executive MBA in Kolkata with placement opportunities. The vetted faculty coupled with the infrastructure allows the student to have academic insights that can be implemented in the industry. Such impeccable lessons are a part of each brand's growth, and these HR lessons can be great lessons for students to learn from.