Amazon has grown to become one of the most important companies in the US. Millions of people rely on the highly efficient deliveries and cheap prices. Moreover, the company has turned into one of the largest employees, as numerous Amazon fulfillment centers are scattered across the country. With such scale, a wide range of issues inevitably arise. Recently the multiple complaints concerning the way Amazon treats it workers have managed to draw public attention. Therefore, a dedicate analysis is need in order to understand what kind of working conditions and atmosphere the IT giant provides.
Key Problems: Job Dissatisfaction and High Turnover Rates
Guaranteeing $15 an hour may be a nice incentive for people in poor neighborhoods, but only in the short run. Motivating people to work better by gradually increasing their pay would be not only more appealing and psychologically comfortable, but also highly beneficial in the long run. Task assignments and worker motivation interact through the extent of labor market competition – that is, the possibility of moving to another firm (Bar-Isaac & Levy, 2022). Therefore, Amazon should consider applying a more traditional approach to motivating workers, which will help to reduce current turnover rates.
Cause: Poor Motivation Techniques
E-commerce is no longer as lucrative as it used to be a decade ago. It has become the primary way people do shopping, especially in the midst of the Covid-19 pandemic. Therefore, numerous new companies have jumped at the opportunity and managed to extend their market shares. Thus, Amazon is determined to cut costs substantially by various means, including the construction of its fulfillment centres in the neighborhoods that have not fully recovered from recent economic recessions. According to Kinicki (2020), turnover is one of the major outcomes that should be considered while tailoring the set of inputs. Currently, the company’s turnover rate continues to be extremely high.
Desired Solution: Utilizing More Conservative Motivation Frameworks
The emphasis on fear, the discouragement of camaraderie and many other Amazon’s current policies substantially undermine employee’s motivation and the company’s public image. The desired potential solution plan includes the introduction of systematic pay raises, the enhancement of bonus systems and changing the way employees are timed. These steps will help the IT giant to motivate employees in a much more positive and respectful way.