With an enormous volume of sales, gigantic warehouses and very short deadlines, amazon
it needs a lot of people working so that everything goes as expected. And that could become a problem in a few years. In a leaked internal report, the company says it may not have anyone to hire in the US in 2024.
“If we continue to do business as usual, Amazon will exhaust the available job offer on the US network in 2024”, says the research obtained by the recode
Amazon calculated the available workers for each of its warehouses. For this, it was based on the level of wages in the region and the distance between households and the company’s facilities, among other characteristics.
In other words, the company is not talking about the entire adult population of the US, only the fraction that could be hired by it.
The document was made in mid-2021. It estimated that the available workforce in the greater Phoenix area, in the state of Arizona, would be exhausted by the end of 2021.
In the case of the Inland Empire region, 100 km east of Los Angeles, California, the situation would happen at the end of 2022.
Other risk regions would be Memphis, Tennessee, and Wilmington, Delaware.
This same model is 94% accurate when identifying US regions where the company was understaffed for the June 2021 Prime Day.
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Salaries, Automation, Retention: The Exits for Amazon
The report does not provide a single solution to the problem. Instead, various measures can help mitigate the shortage of workers. Each of them, however, has its challenges and obstacles.
Raising wages is an example. That would make the company spend more on personnel, forcing it to cut spending in other areas, which could upset shareholders.
Investing in automation lessens the need to hire, but can incur the wrath of job-conscious critics. Amazon is the second largest private contractor in the US.
Improving employee retention helps, but it would be necessary to reduce rigor with performance and productivity monitoring. These policies, however, have been essential to the company’s success so far.
Amazon, one way or another, is going to have to move. As comments to recode
, the company values “consumer obsession” above all else. For that, she promises a lot, like fast deliveries. It’s just that you can’t keep those promises if there aren’t enough people working.