Tag Archives: labor supply

Amazon’s workforce turnover is so high that it could run out of people to hire by 2024

In many markets, Amazon’s desire for warehouse workers seems to be exceeding what’s available. this is according to an internal report obtained by Vox.

Warehouses everywhere churn through workers. Many workers see warehouse work as a stop on the way to something bigger. Most see it as repetitive and offering little chance to grow; a way to pay the bills but not a final destination. That makes it already hard to keep workers— there’s no allegiance to exploit.

And since every warehousing operator needs workers, it’s easy to just jump across the street, probably for more money, or at least a signing bonus.

Many US warehouses today operate with a temp workforce, turning over the recruiting and hiring to a firm that specializes in providing warehouse workers. The workers work for the temp firm, and are placed on 90-day contracts with the warehouse operator. It simplifies recruitment, but makes the job of safety and training more complex. Of course we can ask how much knowledge is needed for a warehouse job. but equipment operation and machine operating skills, and even picking and placement practices take knowledge specific to the individual warehouse, and must be trained for.

Increasing wages would probably help retention some. A portion of workers are motivated by that. Work rules and quality of management are also very important and can aid worker loyalty. But bosses are often not skilled in making workers toe the line, but also feel wanted.

It’s a nasty problem for Amazon. The leak of the report is worthwhile reading for logistics and warehouse professionals.

By Jason Del Rey Jun 17, 2022, 7:00am EDT

Amazon’s workforce turnover is so high that it could run out of people to hire by 2024 – Vox