Trainual is a software company that took a somewhat unusual approach to retaining its best talent in the face of the “Big Resignation,” a trend that added more than 4.5 million Americans in November.
Labor shortages have put executives and business owners in check in every industry, and many companies have been forced to raise wages, add hiring bonuses, and secure more educational benefits to attract employees.
But even amid these changes and the relaxation of traditional work models, the job crisis still persists in 2022, according to a study carried out by the US Chamber of Commerce.
An unusual strategy
Chris Ronzio, CEO of Trainual, could have found the perfect strategy to float this year and keep the best employees on the market: pay a $ 5,000 bonus to those who want to give up.
The idea, which may seem very risky, is to “keep a better selection of the industry’s talent and maintain a strong company culture,” he told Business Insider.
“With the current market, hiring teams have to move fast to evaluate candidates and give them a competitive offer, so it is impossible to be right 100% of the time,” said Ronzio.
Arizona-based Trainual helps businesses recruit, train, and team up. With the new approach, the company has its eye on employees who have only been in their new positions for just two weeks.
“The resignation offer allows the ‘dust to settle’ and the new team member to reveal if they are not as excited about the new job,” he said.
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Ronzio’s strategy contrasts with other companies that offer higher stakes. While there are many reasons for employees to resign, the CEO of Trainual is convinced that the responsibility for each resignation rests with the recruiting team.
Choosing “wrong candidates” has a cost
According to Ronzio, offering $ 5,000 to quit for new employees who don’t have a sense of belonging or are unmotivated provides a “less lossy” exit, compared to giving a monetary incentive to quit later, when the company has invested more in train them.
They now have “the power to fire the company.” “Those who reject the money are because they believe that the long-term value of staying with us is much greater,” said Ronzio.
“It’s a powerful thing for them to decline cash, choose to participate and commit, and it sets the stage for a great working relationship,” he added.
Trainual first launched the incentive in May 2020, with a first offer of $ 2,500 to quit in no more than two weeks. None of the 38 employees hired since then accepted.
Those who stay with the company do not receive any additional incentives. Regarding the increase in the resignation bonus, Ronzio explained:
“We take into account our average salary when we consider changing the amount (to $ 5,000) and finally we calculate that if someone is making $ 80,000 or $ 100,000 a year, then $ 2,500 might not be significant enough. They may decide to stay while they look for another job because they will do more by staying. So we adjusted the number with that in mind. “
According to its website, Trainual has served thousands of businesses in more than 120 countries since January 2018 and “aims to arm all small businesses with a playbook for scale.”