THE amazon they don’t have a very good reputation in terms of working conditions, and this could be affecting the company’s own business. Internal reports estimate that high staff turnover causes a annual loss of $8 billion. Only a third of those hired stay more than 90 days on the job, and the chance of an employee to resign is twice as likely to be fired.
Several reports realize that the work in the warehouses is rigid and heavy — employees have already reported not even having time to go to the bathroom. The bad conditions, however, extend to other positions.
The documents obtained by Engadget they cover all ten levels of occupations in the company, with 1 being warehouse workers and 10 being vice presidents. Throughout all of them, employee decision-making leaves more than 69.5%, and in some, they reach 81.3%.
Internal information supports independent investigations. O New York Times found that staff turnover among hourly hires is 150% per year. already the Wall Street Journal concluded that the turnover of warehouse workers is 100% per year.
Turnover gives Amazon a billion-dollar loss
This all has consequences on Amazon’s own pocket. Reports estimate annual losses of $8 billion.
To put this number in perspective, the company’s 2021 net income was $33.6 billion.
The study estimates that a 15% reduction in departures and layoffs would save the company $726 million a year.
Lack of career perspective can influence
In addition to poor working conditions, one factor that can weigh on the decision to leave Amazon is the difficulty of getting promoted.
According to research carried out by New York Timesthe company intentionally makes it difficult for hourly workers.
Amazon prefers to hire recent graduates with little or no leadership experience. Only 4% of warehouse process assistants are promoted to area managers, for example.
The training program is a mess
One way to better retain employees would be through training, training at home what the company needs. The problem is that the Amazon department responsible for this doesn’t seem to be doing a good job.
According to reports obtained by the Engadget, none of the courses available to employees check whether they have actually learned the content. In some, it is possible to complete the program just by clicking on “Next” and going through the slides.
This department costs $90 million annually from Amazon. In addition, the training required without any compensation for the company is also detrimental, as employees stop working to complete them.
The documents show that 120,000 employees between level 3 and level 8 spend an average of 113 hours per year on these courses. The median salary in these positions is $110,000 per year.
That means Amazon throws away $715 million a year on training.
Amazon is running out of people to hire
The company’s problem with employees goes beyond the loss. In some US cities, such as Inland Empire (California), Memphis (Tennessee) and Wilmington (Delaware), it is depleting available manpower. Internal reports indicate that the company may stay with no one to hire in the country as early as 2024.
Reducing staff turnover would even be one of the recommended solutions for this problem. It seems that the measure to help growth in the future could also increase profits today.