'Pay to quit' Program: Here's why Amazon is paying employees to leave their jobs

Updated : Nov 08, 2023 19:03
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Editorji News Desk

Amazon's program: Amazon CEO Jeff Bezos, known for his innovative leadership qualities, especially in career development believes in empowering employees to pursue their career aspirations, even beyond the company. In an yet another proof to this ideology, Amazon in an exchange filing has mentioned that, the e-commerce giant had introduced Pay to Quit program within its fulfillment centres, offering employees a financial incentive to leave the company.

Pay to Quit

Bezos in a 2014 letter to investors has mentioned the birth of the program while emphasising the need for Amazon employees to reflect on their career goals.

"The goal is to encourage folks to take a moment and think about what they really want. In the long run, an employee staying somewhere they don't want to be isn't healthy for the employee or the company," the letter read.

Also Read: Amazon employee loses Rs 1.6 cr worth stock for forfeiting Work from Office mandate

The programmes was started to encourage employees to consider their career paths. The offer provided financial assistance to those employees who wished to change career paths. It also ensured that those who stayed are genuinely committed to their roles and the company's vision.

The programm that started with $2,000 a year saw an increase of $1,000 every year and has reached a cap of $5,000. This attractive offer also came with the tagline, "Please Don't Take This Offer," signifying Amazon's preference for employees to stay with the company.

Career Choice Initiative

Along with 'Pay to quit', Bezos has also introduced Career Choice Initiative. Through this intiative, Amazon has sponsored 95% of tuition fees for courses in high-demand fields. Fields that are irrelevant to Amazon like nursing and aircraft mechanics were also funded.  As per Business Today, the intention was to foster choice and facilitate personal growth, recognising that for some, Amazon might have served as a stepping stone to diverse career paths.

In 2022, Amazon decided to suspend the Pay to Quit program. This however came after a period of remarkable growth and transformation for the company, including dealing with the surge in global e-commerce and labour shortages caused by the pandemic. 

Amazon

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