Zappos Employees Fleeing. They Want Managers and Titles Not Holacracy

What if you didn't have any boss? Your employer told you that you are your own boss. What if you were accountable and answerable to nobody but yourself? How would you feel about that?

A new concept called Holacracy advocates just that: no bosses, no titles — everyone working for the gains of the company on an equal footing. The system is trademarked and maintained by the Holacracy organization.

The latest company to go all-in on Holacracy was Zappos, the Amazon-owned shoe retailer. Reactions to the email CEO Tony Hsieh sent his staff in March 2015 were varied. His letter stated:

"As previously stated, self-management and self-organization is not for everyone, and not everyone will necessarily want to move forward in the direction of the Best Customers Strategy and the strategy statements that were recently rolled out. Therefore, there will be a special version of "the offer" on a company-wide scale, in which each employee will be offered at least 3 months severance (and up to 3 months of COBRA reimbursement for benefits) if he/she feels that self-management, self-organization, and our Best Customers Strategy and strategy statements as published in Glass Frog are not the right fit. (For employees that have been with Zappos for 4 or more years, the offer will be 1 month for every year worked at Zappos, along with up to 3 months of COBRA reimbursement for benefits.)"

More than 200 employees decided to look for jobs elsewhere because they were unsure of how the system would evolve. The company later confirmed the number: 210 of its 1,503 employees — about 14 percent — took the buyout. Most stayed, choosing to watch the change unfold from the inside. (Reported at the time by GeekWire and HR Dive.)

The concept of Holacracy is still new and evolving. It can be described as a system that removes traditional management hierarchies, allowing employees to self-organize and complete work in a way that increases productivity, fosters innovation, and empowers anyone in the company with the ability to make decisions that push the company forward.

Time will tell whether this method sticks around or fades away.