Riot Games is paying workers to quit. This new business strategy is getting some national notice today. Riot Games is the company behind the popular video game "League of Legends." The company is very selective about the people they hire to join the company, but they still make mistakes during their hiring process. That is where this strategy comes in. Fox Business reported on this new strategy on June 24.
If an employee is not happy with their job, or the company does not feel they are the right fit for them after the person is hired, the company does have a plan in place. They will offer that employee up to $25,000 to quit their job. That is not a severance deal, but it is more of a payoff. The amount is 10% of their yearly salary, and the offer is valid to all employees. It is even available to employees that work with the company for as little as a day, and it is only available for the first 60 days of employment.
A person with a $250,000 salary in the gaming community is not likely to be found. Someone that would make that salary would want to be there. This would be a job they waited for likely. Riot Games is trying to weed out the people with bad attitudes and unexcited about the work they will be doing with the company. This deal is only valid for employees at their North American based offices. The company has offices in New York, St. Louis, and Los Angeles.
Riot Games has spoken out about the new program on their blog. The company said the following about this new approach to getting rid of the dead weight: "Rather than allow mismatches to fester, we want to resolve them quickly. This is good for the company and good for the professional. We’ll learn this and make better hiring decisions as a result. Now, we don’t want to actively push people out or dare them to leave, but we do want to provide a well-lit, safe exit path."
This strategy is getting noticed today because of Riot Games' announcement, but this type of payoff to get unhappy employees out the door and into new jobs that will make them happier is not new entirely. Amazon has a similar payoff plan if employees want to leave. They will pay an unhappy employee $5,000 to quit. Zappos also has a similar plan. They will pay employees that want to leave $2,000 in order to quit. That amount will cover about a month's worth of bills. With the current state of the economy, this could help.
Riot Games is not a large company. They currently employee about 800 employees worldwide. With such a small employee base, it is understandable they would only want those that are happy about working with their company to stay. With the small amount of employees, the ones in office would need to work closely together to get things done. Ever heard the saying one bad apple ruins the whole batch? That could definitely apply here.
Could this be a new way of doing things in the work place? If you are unhappy with your job, it would certainly be easier to quit. Many worry about paying their bills if they do quit their jobs. This extra money could alleviate that worry in a big way.