“When staff is happy, the turnover rate is lower, decreasing overhead cost,” according to Zappos. Hsieh believed happier employees made more productive employees, so Zappos tried to foster socializing and friendships at work – with things like discounted food and relaxation areas. In other Zappos departments, Hsieh changed the related practice of one large promotion into smaller promotions given on merit every six months. “We’ve found that employees are much happier because there’s an ongoing sense of perceived progress.”Ĭonnectedness. Having control over their raises, Hsieh believed, made employees happier. Instead Hsieh implemented a “skills set system,” giving out small raises as each employee learned and mastered each of 20 skill sets laid out by the company. For example, Zappos call center employees used to get an annual raise. Abraham Maslow's hierarchy of needs pyramid.
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