Newsletter Article
Member Benefit
Published Mon Jul 11 2022
Employee turnover is a big problem for many companies, but for one well-known name, it may put them in crisis mode. A leaked memo from mega-retailer Amazon revealed that the company is concerned it may run out of people to hire by 2024. To put it another way, it will have burned through the available US workforce if current practices are not changed. Increases in pay and increasing automation are two of the “levers” Amazon could use to delay the crisis, but staffing challenges in a model where productivity is centered aren’t going away. There are trade-offs, but executives may not find those options acceptable. Overall, a more intentional program of employee retention will be needed to ensure Amazon’s continued success, even if that means sacrificing obsessive performance tracking and production quotas. Amazon’s trademark “customer obsession” will then have to change as well.
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