According to foreign media reports, Amazon’s exaggerated employee turnover rate has been the focus of attention. Before the pandemic, Amazon's annual employee turnover rate was as high as 100% , more than double the industry average.
Recently, a document leaked from within Amazon confirmed its high employee turnover rate and associated costs. According to the report, Amazon's various operating divisions have experienced high levels of attrition, with the retail giant and its shareholders losing an estimated $ 8 billion a year in total.
The report noted that only one-third of new hires in 2021 have worked at Amazon for more than 90 days , across all levels (first through tenth-level employees), suggesting Amazon has a serious employee retention problem.
It is reported that the main reason for Amazon's leadership employees to resign is for career development and promotion. The document shows that Amazon does not have a well-developed system for training and promoting employees.
In 2021, workers at Amazon's U.S. warehouses will suffer a serious injury at twice the rate of other companies in the industry , with 6.8 serious injuries for every 100 Amazon warehouse workers, another study showed.
That rate is more than double that of other employers in the warehousing industry, which has an average of 3.3 serious injuries per 100 workers, according to the Center for Strategic Organizations. In 2021, Amazon employs nearly one-third of all warehouse workers in the U.S., but nearly half of all workplace injuries in the warehouse industry occur in Amazon warehouses, the report shows.
An Amazon employee in Campbellsville, Kentucky, who is trying to organize a union in a warehouse, said: "Amazon's hiring practices, productivity quotas, attendance policies, and unequal rules are the main reasons for the lack of job security for employees, and That's the culprit behind Amazon's high turnover rate."
However, since last year, Amazon has rolled out some safety measures, such as body mechanics training. In January, Amazon disclosed that it was spending $300 million in 2021 to improve worker safety.
In addition, Amazon has launched a series of wellness programs that are expected to reduce accident rates by 50% by 2025. To better educate and train its employees, Amazon plans to pay college tuition and books for more than 750,000 U.S. frontline workers.
On the other hand, Amazon’s newly disclosed third-quarter revenue did not meet expectations, causing its stock price to plummet. It remains to be seen how the retail giant will make adjustments later.