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...…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.