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14% of Zappos Employees Quit Rather Than Work in System Without Managers...

What's next at Zappos?  Commune?  Nude Commune?

The Washington Post reported on Friday that 14% of Zappos' employees took a severance package rather than work in a Holocracy - which is an organizational structure without managers.  More from the Post:

In March, Zappos CEO Tony Hsieh issued an ultimatum of sorts to his employees. If they didn't feel like they could get behind the company's radical new management system—in which there are no traditional managers or job titles—he would give them until April 30 to decide whether they wanted to leave in exchange for at least three months' severance. The company said it was offering the option to eligible employees in order to expedite the new system's adoption.

Now that the deadline has passed, it turns out that 210 employees, or about 14 percent of the online retailer's 1,500 workers, have taken Hsieh up on it. Zappos confirmed the number with The Washington Post, though declined to specify how that number breaks down among their sales representatives and executives.

Need a refresher about Holocracy?  Here you go:

In a Holocracy, traditional corporate hierarchies are replaced with self-governed teams known as "circles" in an effort to make the organization more agile and innovative.

Here's the wikipedia description... 

Here's a post by William Tincup over at FOT...

Holacracy2

Three observations here:

1. If you really want a holocracy, it makes sense to to kick the naysayers out.  +1

2. You just kicked a lot of good people out of Zappos.  Let's face it, you don't hire ordinary people anyway, so it stands to reason those that took you up on the severance offer are the ones with the best mix of your cultural norms and conducting business the way the world actually works.  -1

3. To take it to the next level, all Zappos operations would have to be held as part of a hippie commune.  PUSH

Playing the Zappos Drinking game at home (or at the office) HR pros?  That's 7 drinks by my count.  Drink up.

 

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