The “immutable law of labor: When there are a lot of people willing and able to do a job, that job generally doesn’t pay well.” —Freakonomics
Zappos.com created a very tempting company culture. It established itself as an employee haven. It has a reputation for having the best customer service and customer satisfaction (in the world?) How?
Zappos.com empowers employees to take initiatives with customers. Each employee gets a sum to spend as she likes on pleasing customers. They have 2 interview criteria, one for qualifications, another for culture-fit. Zappos.com bombards each applicant with endless questions to see if the applicant fits their company culture. They reject participants if they’re not a culture fit. There’s more.
Zappos.com doesn’t hire managers, nor executives, nor any other position for that matter. Zappos.com only hires customer support people. And I mean that literarily. I don’t mean that they hire for different positions, but call everyone ‘customer support’. Nope. They just hire people to sit on the phone all day taking care of customers. With Zappos.com the only way to have a shot at the top is to start from the bottom.
From the bottom, they train you, and you get promoted every 3 months. This goes on for 10 years (every 3 months) until you reach an executive position. When an executive retires or drops out, they don’t hire a new one. The second in line takes her place. By creating this employee pipeline, they’ve created 2 situations.
- Everyone wants to be a Zappos.com employee because it’s the best place ever for an employee to be in —1st rule of the immutable law of labor.
- Everyone is able to do the job because Zappos.com only hires customer support people —2nd rule of the immutable law of labor.
When everybody wants a job, and everybody has the skills to do a job, salaries go down in direct proportion to the number of people willing to do that job.
And so, although it appears that Zappos.com is the Knight-in-Shining-Armor that changed the wold for employees, it seems to be only a masked strategy to pay the lowest salaries possible. Hence making huge profits for the people at the top.
That’s your typical low-life capitalistic model right there. Freaky isn’t it?
Related: The real secret of Facebook’s success – Uncovered They really don’t want you to this either.