Archives for August 2014

A COUNTERINTUITIVE APPROACH TO EMPLOYEE HIRING AND RETENTION

Businesses in the various segments of the horse-racing industry often struggle with employee turnover, and it can be expensive and time consuming.  Research by the U. S. Department of Labor found that the costs to an employer of a wrong hiring decision can reach up to 30% of an employee’s annual earnings.  Companies routinely screen prospective employees by reading resumes, conducting interviews, and checking backgrounds and references, but these procedures have their limitations and a certain number of bad hiring choices are inevitably made.

Online retailers Zappos and Amazon have implemented an unusual incentive-laden technique for identifying and amicably parting ways with employees who should not have been hired or who no longer like their jobs.

Zappos pioneered a program known as “The Offer” in which new employees are tendered a monetary inducement to quit.  After an individual has been on the job for about a week, he or she can choose to be paid for time worked plus $4,000.  About 97% of new hires refuse the offer.

When Amazon acquired Zappos in 2009, it followed suit and installed “Pay to Quit” for employees in its fulfillment centers in an effort to reduce turnover.  Amazon’s proposal to employees to resign is made once a year.  During the first year of a person’s employment, the incentive is $2,000 and then it escalates by $1,000 for every subsequent year worked until it is capped at $5,000.  Amazon tells its employees, “Please don’t accept this offer.”

The unorthodox methodology used by Zappos and Amazon is a rare new approach to the age-old employer problem of sorting out unqualified, insufficiently motivated, or disgruntled employees, who contribute to an unproductive or even poisonous work environment.   The pay-to-quit technique is worth experimenting with in those job categories in horse-racing in which turnover and employee satisfaction have been perennial problems.

Copyright © 2014 Blood-Horse Publications.  Used with permission.

SOME OF MY FAVORITE THINGS TO DO AROUND SARATOGA SPRINGS

Quaint:  attractively unusual or old-fashioned.

It is that time of year again when racing fans gather at the magical place called Saratoga Race Course.  I’ve been making the journey from Ohio for the past 24 years and find it an elixir.  Some of my favorite things to do and see are…

Attend the opening night of the Fasig-Tipton select yearling sales, where the great Man o’ War was sold when his owner, 65-year-old August Belmont Jr., decided to volunteer for the First World War.  The atmosphere is electric, and people watching is as interesting as horse watching.  Several years ago I found myself standing next to a woman who looked familiar.  She was, Bo Derek, star of the 1979 movie 10, still looking plenty good.

Leave the motel in downtown Saratoga Springs where I stay and walk through Congress Park and down bustling Union Avenue, with its stately homes, for an afternoon at the racetrack.  Browse the National Museum of Racing and Hall of Fame gift shop.  Meander around the racetrack grounds to see the exhibits and mingle among the fans, dressed in all manner, from sartorial splendor to shorts and flip flops.

Casually stroll down Broadway and take in the shops, and then go to North Broadway to admire the fine Victorian mansions.  The Lyrical Ballad used bookstore on Phila Street, just off Broadway, is a must, and expect to spend a lot of time there if you enjoy mostly old but some new books, especially on horse racing.  I was in the Lyrical Ballad in 2003, in the old bank vault section, when there was a power outage on the East Coast.  Later that day, I had dinner in a sweltering restaurant sans air conditioning, where cooking was propelled by a generator.

Dine in the excellent restaurants in the Saratoga area, which has choices for virtually any taste.  Don’t pass up the Ben and Jerry’s in a renovated service station.

Journey to the elegant Sagamore resort in Bolton Landing on Lake George for lunch or dinner.

Visit Congress Park at night and venture by the Canfield Casino…and imagine its founder John Morrissey, the former bare-knuckles heavyweight champion, in his tuxedo greeting customers 150 years ago under the flickering gas lights.

Take a day trip on winding country roads by farms and through villages to Manchester, Vermont, to shop in the outlets, and in particular the headquarters store of Orvis.  Maybe afterwards dine at Equinox Resort and Spa, where Mary Todd Lincoln and her sons took refuge in summers during the Civil War.  She made reservations for the family, including her husband, President Abraham Lincoln, for the summer of 1865.  An event, of course, tragically intervened.  The eldest Lincoln son, Robert Todd, built his summer home, Hildene, in Manchester, and it is open to the public and is well worth visiting.

Wander around the Saratoga National Historical Park, where the fledgling American colonial army defeated a major British force in a 1777 battle that helped turn the tide in the American’s favor.  Benedict Arnold was heroic at Saratoga and would today be one of the most revered Americans had he died of his wounds.  Instead, he is first among America’s greatest traitors.

Hope to see you at the “Spa,” the venerable racetrack founded by John Morrissey in 1863, for the best racing in America.

Copyright © 2014 Horse Racing Business