Over the years, Amazon’s obsession with customers has helped it scale its world-class delivery services. (Who wouldn’t want their groceries dropped off in 13 minutes?)
![Amazon’s unique hiring problem, explained](https://20627419.fs1.hubspotusercontent-na1.net/hub/20627419/hubfs/The%20Hustle/Assets/Images/1628935058-HS-News-Brief_2022-06-20T230158.029Z-scaled.webp?width=595&height=400&name=1628935058-HS-News-Brief_2022-06-20T230158.029Z-scaled.webp)
But providing exceptional customer service hinges on having the workers to carry it through, and Amazon may be running out of them, per Recode.
A leaked internal memo…
… suggests the company could run out of candidates to staff its warehouses by 2024. The problem is twofold:
- Rapid hiring: Amazon’s workforce doubled from ~800k to ~1.6m employees from 2019 to 2021.
- Rapid turnover: Many Amazon jobs are viewed as transitory — the company churns through ~3x more workers than competitors. (Is Bezosism to blame?)
If you’re wondering how it’s even possible for an HR department to hire so many people so fast, you’re spot on — Amazon workers have been hired (and fired) without talking to a single human.
Rapid hiring and firing…
… may have put Amazon in this mess, but the company has options to get out of it, like:
- Relaxing the rules: In places with a higher risk of worker shortage, Amazon’s been more lenient about its stringent workplace policies.
- Increasing pay: Internal research at Amazon found that every dollar added to its minimum wage attracts 7% more workers into its hiring pool. Following that logic, an increase of $1.50/hr would extend Amazon’s runway by another three years.
- Better planning: Amazon’s HR division believes the company can improve the situation by ensuring new warehouses have adequate local labor pools.
Another possible solution? Doubling down on automation.
Robots…
… are nothing new to Amazon, which purchased manufacturer Kiva Systems in 2012 — a deal that’s reportedly saved Amazon billions.
The company has an internal goal of increasing productivity by 25% by 2024 strictly through improved automation.
By then, if current hiring trends continue, a robot-dominant workforce may be Amazon’s only option.