Posted Oct 18, 2022 2:41 PMUpdated on Oct 20, 2022 at 1:11 PM
Amazon is struggling to retain its employees, and this is costing it dearly. In 2021, only one in three employees stayed at Amazon more than 90 days after being hired. And, according to internal documents consulted by the specialized site “Engadget”, the cost of this “great resignation” amounts to 8 billion dollars per year for the company. An astronomical amount, the details of which are not disclosed, but to be compared with the net profit of 33.36 billion dollars made by Amazon in 2021.
In most cases, the Seattle group, which employs nearly 1.6 million people worldwide, is not directly responsible for these premature departures. According to these documents, cases of resignations are twice as numerous as dismissals. And if Amazon is known for its sometimes difficult working conditions in its warehouses, the figures revealed by “Engadget” underline that more qualified employees are also concerned: the proportion of resignations varies between 69.5% and 81.3% depending on rungs.
The lack of “prospects for development and promotion” would be at the top of the causes pushing managers to leave the company prematurely. In addition to painting a “gloomy picture of Amazon’s ability to retain its employees”, these documents underline that the group misuses the data at its disposal to monitor their training and progress. “An ironic shortcoming for a reputable company to compulsively collect consumer data”, tackles the media.
Three years ago, however, Amazon created a service dedicated to “talent strategy, management and development”. With an annual budget of 90 million dollars, its 615 employees are in charge of 97 training programs and 2,000 learning modules.
Problem: the impact of the majority of these programs would be poorly assessed, both from a financial and human point of view. “The fact that Amazon has commissioned internal reports of its training program failures suggests the company is aware of the problem,” Engadget notes. “We want to do everything possible to make Amazon an employer of choice,” explains Amazon. The company is expected to streamline its model starting in June, as part of a new program called Brilliant Basics.
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