Approaches for Employees’ Motivation
Case study: ZAPPOS CREATES A MOTIVATING PLACE TO WORK
It is unique to hear about a CEO who studies happiness and motivation and builds those principles into the company’s core values or about a company with a five-week training course and an offer of $3,000 to quit anytime during their training if they feel the company is not a good fit. Top that off with an on-site life coach who also happens to be a chiropractor, and we are really talking about something you don’t hear about every day. Zappos, an online shoe and clothing retailer, is known as much for its 365-day return policy and free shipping as it is for its innovative corporate culture. Although acquired in 2009 by Amazon, Zappos managed to remain on Fortune magazine’s “100 Best Companies to Work For” list.
Performance is a function of motivation, ability, and the environment in which you work. Zappos created an environment that encourages motivation and builds inclusiveness. The company delivers above and beyond basic workplace needs and addresses the self-actualization needs that most individuals desire from their work experience. CEO Tony Hsieh believes that the secret to customer loyalty is to make a corporate culture of caring a priority. This is reflected in the company’s 10 core values and its emphasis on building a team and a family. During the interview process, applicants are asked questions relating to the company’s values, such as gauging their own weirdness, open-mindedness, and sense of family. Although the offer to be paid to quit during the training process has increased from its original number of $400, only 2% of trainees take the offer of $3,000 to leave on their 90-day anniversary. Work is structured differently at Zappos as well. For example, there is no limit to the time customer service representatives spend on a phone call, and they are encouraged to make personal connections with the individuals on the other end rather than try to get rid of them.
Zappos has over 1,500 employees, yet the company has been able to maintain a relatively flat organizational structure and prides itself on its extreme transparency. Two of the top executives have no titles, and no one except two in-house lawyers have an office. In an exceptionally detailed and lengthy letter to employees, Hsieh spelled out what the new partnership with Amazon would mean for the company, what would change, and more important, what would remain the same. As a result of this type of company structure, individuals have more freedom, which can lead to greater satisfaction.
In 2010, Zappos had 55,000 applicants for 200 jobs. Although Zappos pays its employees well and offers attractive benefits such as full health-care coverage and a compressed workweek, the desire to work at Zappos seems to go beyond that. As Hsieh would say, happiness is the driving force behind almost any action an individual takes. Whether your goals are for achievement, affiliation, or simply to find an enjoyable environment in which to work, Zappos strives to address these needs. In fact, Zappos even has a consulting arm that teaches other companies, such as Google and Eli Lilly, how to build happy workplaces.
The latest developments at the company may be indicative of a change in how motivating employees find Zappos. In 2015, the company switched to a new organizational structure, essentially eliminating job titles and managers, and distributing authority across the board. As befitting their culture of motivating via employee buy-in, Hsieh offered employees who felt that this structure was not for them three months’ severance to quit their jobs. Around 210 workers, or 14% of the workforce took him up on this offer.
CASE DISCUSSION QUESTIONS:
- Motivation is an essential element of the leading facet of the P-O-L-C framework. Besides those used by Zappos, what are other means that organizations use to motivate employees?
- Why do you think Zappos’s approach is not utilized more often? In other words, what are the challenges of using these techniques?
- Why do you think Zappos offers a $3,000 incentive to quit? What are your thoughts on a buy out of employees who disagree with organizational change?
- Would you be motivated to work at Zappos? Why or why not? 5. Is happiness synonymous with motivation? When does happiness translate into motivated employees?
- Motivation is an essential element of the leading facet of the P-O-L-C framework. Besides those used by Zappos, what are other means that organizations use to motivate employees?
There are several means that organizations use to motivate employees, including:
- Financial incentives, such as bonuses and stock options
- Non-financial incentives, such as recognition programs and flexible work arrangements
- Career development opportunities, such as training and mentoring
- Employee involvement and participation in decision-making
- A positive work environment and culture that values employees’ contributions and well-being
- Aligning employees’ goals with the organization’s goals and mission.
- Why do you think Zappos’s approach is not utilized more often? In other words, what are the challenges of using these techniques?
Zappos’s approach is not utilized more often because it requires a significant investment in time and resources to build and maintain a positive and engaging work environment.
