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Amazon Staff Turnover Analysis


  • 1.0 Introduction
  • 2.0 Literature review
    •  2.1 Poor working conditions
    •  2.2 Supervisor mistreatment
    •  2.3 Lack of recognition
    •  2.4 Lack of opportunity for professional advancement
    •  2.5 Discord between organizational and employee missions
  • 3.0 Conclusion
  • 4.0 Bibliography

1.0  Introduction

Amazon.com, Inc is one of the largest online companies today with annual revenue figures of close to $ 75 billion. With such revenue figures, one would easily conclude that Amazon’s human resource practice must be optimized to enable its workforce maintain a good track record and ensure the company gets the best input in terms of skill to ensure optimum performance. However, the opposite is quite true. Surprisingly, Amazon.com has the highest rate of staff turnover in its class of companies yet still manages to rake in huge sums in revenue. This unusual phenomenon shall be the focus of this literature review alongside trying to identify ways of remedying the situation. In addition, we shall be trying to critically analyze available literature regarding the issue of staff turnover from the company’s perspective.

2.0 Literature Review

Amazon.com was founded by Jeff Bezos in 1994 and launched operations a year later launching an online books store. Since then, the Seattle based online company has grown and diversified increasing its range of services to include the sale of not only media but everything that its clients want. This includes; hardware, clothing, spare parts, perishables and fragile goods. From an employee turnover perspective, Amazon.com has continued to perform poorly making it a target for numerous studies and inquests as people seek to find out why such a large successful company would have major issues retaining its workers. Staff hiring, management and retention is one of the most sensitive aspects that influence a company’s ability to perform well.

Amazon Staff Turnover Analysis

From a human resource perspective, turnover is primarily viewed as a problematic issue especially if it is voluntary. The firm’s ability to attract, induct, manage, and retain a skilled workforce is directly linked to its ability to achieve its organizational objectives. If it cannot retain its workers, the firm is left exposed and has to incur unnecessary expenses in the process of recruitment and replacement. In addition, the high rate of turnover affects the company’s productivity as the main source of its operational capacity leave.

As part of a larger more complex organizational function, turnover can be influenced by many factors. The working conditions, level of job satisfaction, and supervisor behavior affect organizational rates of staff turnover. However, from the perspective of Amazon.com, the main causes of its high rate of turnover are poor working conditions, discord between organizational and employee missions, lack of advancement opportunities, and supervisor mistreatment.

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