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HRM CA | 09 Jul 2014, 08:58 AM Agree 0
Want to make sure you have an engaged workforce? One gaming company is offering its workers a great incentive to quit if they’re unhappy, leaving behind those who love the job.
  • Justin B | 09 Jul 2014, 10:59 AM Agree 0
    On the face of it, this appears to be very generous, but in reality they are just changing the termination from a termination without cause to the person quitting themself.

    BC labour law has a minimum schedule that must be followed. Even after 3 months, a person is entitled to 1 week notice of severance, which most places will just pay in lieu to avoid any revenge tactics by the employee during their notice period. At $40,000, this is $770. So paying an employee to quit will cost you a more, but then there is less (maybe zero?) risk of them being able to take you to court to sue for wrongful dismissal or a more generous severance package. So definitely worth the extra cost.

    There is also the benefit that you will have less employees who don't align with the culture for long periods, because there is a financial cushion if they leave.
  • Kelly A | 11 Jul 2014, 12:37 AM Agree 0
    In our current job market which seems to be difficult in most sectors, once people find a job then tend to want to keep it whether they enjoy their job or not. For an employee, it can be a much better option than finding themselves back in the immense queue of unemployed.

    Unhappy employees do not make for a good work environment and the costs stack up when you account for the lost productivity of the unhappy employee which also compounds to other staff that are affected by the behaviour. It may also cost the company in loss of good employees that no longer want to work in such an environment. This cost mounts very quickly and to a huge extent that could very well exceed an entire individuals wage. (Speaking from recent experience as a GM)

    I've heard of companies that invest incredible amounts in "Employee Relations Coaching" which is designed to assist building a better environment and provide psychoanalysis of all the staff members. This is altruistic and may improve things, but often doesn't fix the problems, plus the cost is multiples of staff wages over a year.

    When a job position is filled, this is a risk for both the company and employee. One thing that I've always felt is that if the fit isn't correct that you end the relationship sooner than later.

    As a reasonable and ethical company, there is logic behind providing an incentive to have unhappy staff leave, even at 10% of their annual wage (just over a month of wages), this is likely less costly than the alternative. It may discourage people from staying in a position where the fit isn't right just to have a paycheque. Plus, often employers tend to give too much leniency for staff that are not working out as they "need" someone to fill the spot, rather than looking for the right person. Checks and Balance.

    Interesting methodology.
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