Amazon is having major issues retaining their employees with a billion attrition rate, based on a report from Engadget. This was revealed through leaked documents from internal research papers, slide decks, and spreadsheets from the company.
A picture taken on November 8, 2018, shows employees working at the distribution center of US online retail giant Amazon in Dortmund, Germany. INA FASSBENDER/DPA/AFP via Getty Images)
(Photo : INA FASSBENDER/DPA/AFP via Getty Images)) A picture taken on November 8, 2018, shows employees working at the distribution center of US online retail giant Amazon in Dortmund, Germany.
Attrition Rate
According to the source of the leaked documents, this was obtained as the company lacks internal controls. The report reveals the estimation of the company's attrition rate, and it costs roughly $8 billion annually to its global consumer field operations team. More employees decided to leave by choice, while there were fewer employees that were fired or part of the company's layoffs.
This news was not a secret among the employees from Amazon as it spread through the warehouse workers, entry-level roles, and even up to vice presidents. As per The Verge, the attrition rate of the company's ten tiers of employees is at 70%, and it reached its highest at 81.3%.
However, the report did not reveal which department or class of employees had the highest attrition rate, but it was revealed publicly that Amazon had several turnovers in its warehouses and other fulfillment facilities.
The leaked documents also include the company's current strategy, which may harm them financially, and concerns from employees regarding lack of training and role promotion despite having a reputation for harvesting consumer information. According to the reports, the training programs that the company provides are either disorganized or wasteful for the employees.
Aside from warehouse workers, workers with managerial positions were also concerned regarding their roles as it was described by them as a "dead end" in their career, which is also the second highest reason for the non-exempt employees to quit. One of the papers states that "the primary reason exempt leaders are resigning is due to career development and promotions."
The number of resignations worries the company and its state in the future as they are running out of people who are willing to work for them. The Verge has contacted Amazon regarding this issue and leaked documents from Engadget, but no further comment was given by the company.
Walk Outs and Strikes
Several walkouts and strikes were voted by Amazon Workers last week as Black Friday and Cyber Monday approach, which is claimed as one of the busiest seasons in the market. This includes facilities in Albany, New York, Moreno Valley, California, San Bernardino, California, and more.
More Perfect Union stated that the reason for these strikes was rooted in the demand of the employees for higher wages. As a response from Amazon, they received "negligible raises," which made them furious and motivated to strike. Previous walkouts were done to some facilities, such as the facilities in Buford, Georgia, Joliet, Illinois, and Stone Mountain, Georgia.
