Amazon Human Resources Business Report

Using Extrinsic Motivation to Decrease Turnover Rates
HR problems at Amazon exist and it has become public knowledge due to two publications, one from the New York Times, and another from The Morning Call. This business report will address the problems, provide a brief summary, and then analyze them using HR concepts and theories. Finally, recommendations will be given and implications of these recommendations will be discussed.
Summary
Amazon has unfairly treated workers going through cancer treatment by giving them low performance ratings or edging them out of the organization altogether (Kantor & Streitfeld, 2015). Other workers have complained of brutal working conditions: heat, exhaustion, being worked to the point of collapse, heat stress from temperatures rising over 100 degrees, and a feeling among some that the conditions are slave-like (Soper, 2015). Not all workers view the conditions as unbearable—some view it as just another factory job and are happy for the work. However, the complaints have mounted and attention has been drawn; HR needs to address these issues.
Analysis
Relationships are vital in any business, and one of the roles of HR professionals is to manage relationships in the workplace (Noe, 14). Another function of HR is to engage in organizational leadership, which can include fostering collaboration among workers and managers, and strengthening the workplace culture (Noe, 14). At the same time, companies must realize that they are competing globally with other players in the market, that they are competing through technology and that they are competing through sustainability (Noe, 15). Stakeholders (and that includes workers) must realize that for a business to be successful today, the business must be aggressive and focused on performance. One of the big challenges facing Amazon’s HR is how to balance the complaints of workers with the need of the company to achieve a high-performance level. Focusing on cutting costs, eliminating waste, and maximizing output are some of Amazon’s goals. Yet, some employees feel that the environment is overwhelming, demoralizing, exhausting, and inhumane. This is a problem because if employees feel that they are not being cared for they may revolt or they may deliberately try to sabotage operations. Morale is a real concept that HR has to monitor and be aware of. If morale erodes, performance will mirror that erosion. Just as a company can enhance morale by implementing corporate social responsibility (Noe, 32), so too can a company like Amazon destroy morale by neglecting the needs and complaints of employees.
Another aspect of the problem is, however, that not all employees feel the same about the working conditions (Soper, 2015). Some perhaps knew what to expect with factory work and thus were not surprised by the brutal heat or the exhausting hours. Others perhaps took the job because they had nowhere else to go. Amazon has helped to close a significant number of brick and mortar retailers, meaning those who worked there end up coming to the Amazon factory in the end. They are likely used to air conditioned retail stores where hours are short and the work is not too laborious. It is very likely the case that some of the workers who find the labor at Amazon to be overwhelming probably had no idea what to expect when they signed on to work at the company in its factory.
This means there is probably a lack of communication between those doing the hiring at Amazon and the workers who are applying to work there. If the job description of the work is not accurately reflecting the demanding conditions of the workplace, Amazon’s HR is doing a disservice to the company. Turnover is going to continue to be high if the company keeps giving out misleading job descriptions about the nature of the work. HR should be upfront and honest about how demanding the job can be, how brutally hot it can be, how long and intensive the hours can be, and how important it is for the worker to be sure that he or she can handle that type of challenge. If there is a failure on the HR’s part in terms of correctly describing the nature of the work to applicants, then that is something that needs to be addressed. Those workers who are complaining now then would not be able to complain because they would have been told ahead of time what the nature of the work was like. If HR fears that by telling potential employees upfront about the actual working conditions they might make it harder for themselves to fill posts in the factory, it might mean that HR needs to consider improving the working conditions. If they are so bad that it turns out they cannot even staff the factory then it is likely a sign that the workers are right. If on the other hand, they can adequately staff the factory after being upfront and honest about the workplace conditions, it likely indicates HR has been hiring the wrong kind of talent and that is why the complaints and turnover are so high.
Human capital is always going to be one of the most valuable assets that any company holds—yet factory labor varies in terms of skill-level required, and a great many jobs may be eliminated in the coming years by robotics. Others will remain but the requirements may be high and of a rather physical nature. Still, this does not mean that the company should not take care of its workers or provide the best and safest possible working environment possible. If better cooling systems are available, workers want to know why they cannot be implemented. Perhaps more breaks or longer breaks would help them to get through difficult shifts—that is another issue that workers have (Soper, 2015).
Recommendations
HR may recognize that the work is demanding but at the same time workers should be made to understand that the nature of globalization is such that it has made work more demanding by necessity: gone is the 40 hour work week; organizations must now work 24-7 and shifts are more likely to be 12 hours long than 8 hours long in factories like Amazon (Noe, 27). It is thus recommended that HR be more upfront in terms of how it describes the nature of the job. The job description of factory work has to be updated to include a more accurate reflection of the demanding and challenging nature of the work, including the heat, the long hours, the exhaustion and the few breaks. If this has not already been done, it needs to be done now. Job descriptions are put out for a reason—it is so that workers cannot later on argue that this work was not in their job description. HR should be completely upfront about the demanding nature of the job, especially as it is unlikely to change.
However, if after being more honest with the nature of the work in the hiring process the company finds it can no longer find any talent willing to come work in the factories, it may be that the company needs to address the nature of the factories themselves. Yes, globalization has made it so that workers now must accept the challenge of longer hours around the clock in large factories. At the same time that does not mean it totally absolves Amazon from having to do all it can to make the workplace environment safe for the workers it is able to recruit or hire. People are not going to be used to such an environment, especially if they are coming from a brick and mortar background. The company should be sensitive to that fact. It should either be willing to work with what is available to it in terms of human capital, or it should try to create a better working environment for them to help build relationships, improve morale, and keep performance up.
Other possible recommendations are to use extrinsic motivations, such as bonuses or stock or vacation time or even extended break opportunities for workers who meet production goals. Extrinsic motivation, as described and used in expectancy theory or transactional leadership, can be a great way to boost performance and enhance the morale of workers.
Implications
The implications of these recommendations are that it would tighten up the way in which HR approaches the issue of hiring candidates for factory work. By describing the nature of the work more effectively it may limit the pool of candidates and talent from which to choose but it also means that there will likely be fewer mistakes in terms of hiring the wrong person for the job. Matching the right candidate with the right job is an important aspect of HR and if HR is able to do that job well it should lead ultimately to a reduction in turnover. If HR is also able to implement a program of extrinsic motivation it could be that the performance in the factory improves overall as well. If HR can implement both these recommendations and improve the working conditions in the factory, it should be able to create an improved workplace culture, improvements in morale, and improvements in performance along with a healthy reduction of turnover across the board.
References
Kantor, J. & Streitfeld, D. (2015). Inside Amazon: Wrestling Big Ideas in a Bruising Workplace. Retrieved from https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0
Noe, R. (2013). Human resource management. McGraw-Hill.
Soper, S. (2015). Inside Amazon’s warehouse. Retrieved from https://www.mcall.com/news/watchdog/mc-allentown-amazon-complaints-20110917-story.html