Those in charge of hiring and firing duties are well acquainted with providing severance pay to employees they let go. Some companies consider it a humane way to show underperforming workers the door; others do it in exchange for a pledge not to sue. So reports Bloomberg.
In any case, lump-sum departure payments are seldom regarded as a marketing tool. Now, however, at least one forward-thinking firm is doing just that. Online lingerie retailer Adore Me’s CEO, Morgan Hermand-Waiche, is making a practice of rewarding certain hard-working staffers with a parting gift to the tune of $10,000 when they opt to leave voluntarily.
He sees it as a way to generate positive buzz about the type of workplace Adore Me strives to be, and a tactic that encourages contented staffers to build their careers there. And, to avoid his workforce quitting en masse just to get the bonus, he offers the reward selectively.
On a more subtle note, Hermand-Waiche sees the payout as a perk that encourages his staff to work hard in hopes of earning the eventual reward; also that it might entice valued employees (particularly younger ones) to return to Adore Me at some point – the so-called “boomerang” employees.
Not everyone in the HR world is convinced of the merits of such a gambit. Bruce Elliott, SHRM’s manager of compensation and benefits, sees it as start-up innovation run amok, or at least as counterintuitive to conventional benefits logic. While he acknowledges increasing challenges to provide adequate benefits and secure retention today, Elliott doesn’t see Adore Me’s strategy as the start of any real trend.