Last year, only a third of new hires at Amazon stayed with the company for more than 90 days before quitting, being fired or being terminated, according to leaked documents obtained by Engadget. The report is the latest indication that Amazon is having serious problems retaining employees, and it reveals the company’s estimate that its attrition rate is costing it nearly $8 billion a year across its global workforce. field operations.
The report, which is based on internal research papers, slides and spreadsheets from Amazon, says workers are twice as likely to leave by choice, rather than because they were fired or terminated. He also says the problem is widespread throughout the company, not just among warehouse workers; from entry-level roles all the way up to vice presidents, the the lowest the attrition rate for any of the company’s 10 employee levels was nearly 70%, with the highest reaching a staggering 81.3%.
The report does not specify which category of employees had the highest attrition rate, but it is well known that Amazon warehouses and other fulfillment facilities have more turnover than the rest. Of the industry. According to a report by The New York Timesabout three percent of the company’s hourly employees were leaving weekly, and leaked internal memos obtained by Recode show that the company is worried about literally running out of people who would be willing to work for it in the next few years (and even sooner, in some regions).
The problem of attrition is top to bottom
But while some Amazon warehouse workers have made it very clear why people don’t necessarily want to stay in those roles, Engadget notes that managers are also leaving due to “development and promotions” issues, or are otherwise advancing their careers at Amazon. Part of that may be due to company-provided training programs, which are believed to be important for advancing at Amazon, but which are apparently run in a disorganized and potentially unnecessary manner, according to documents cited by the report. Amazon did not immediately respond to The edge request for comment on Engadgetreport.
While Amazon definitely seems to have issues with people leaving, it has also come under fire for how it handles layoffs as well. Last year, reports said Amazon’s goal was to filter out the bottom 6% of employees, and it didn’t necessarily notify employees at risk of job loss so they could work. actively to improve their performance. In the past, there were also concerns about the role of automation in the company’s process to track the performance of warehouse workers and fire them if they did not meet rigorous company standards.