Indeed, Amazon’s combination of rapid hiring and high turnover has some industry executives concerned about the possibility of “running out of workers.” An extensive investigation by the New York Times into Amazon’s labor practices and the management philosophy behind those practices found that even prior to the pandemic, Amazon was losing roughly 3 percent of its hourly associates per week, a turnover rate of approximately 150% a year, roughly double the rate of the retail and logistics industries. The Seattle Times determined that, during the first months of the pandemic, turnover rate among front-line Amazon workers was at least twice the industry average. More recent data paint an even more disturbing picture. Tracking county-level worker turnover data between 2011, the year before the first Amazon fulfillment center opened in California, and 2017, NELP found that turnover rates more than doubled, from 38.1% to 100.9%-an increase of 62 percentage points.
“More workers leave their warehouse jobs each year than the total number of warehouse workers employed in those counties,” note the study authors. High worker turnover, present throughout Amazon’s workplaces, weakens the bargaining power of the company’s workers and thwarts union organizing.Ī 2020 report by the National Employment Law Project (NELP) found turnover rates of more than 100% among warehouse workers in California counties where Amazon fulfillment centers are located. But having so much churn in the workforce “makes it difficult to build and maintain relationships with coworkers,” he explains.Ī growing body of reporting and research suggests that Eaton is onto something. “Workers here all have the same complaints-about low pay, the constant pressure, and how hard it is to report an issue to the automated HR system,” says Eaton.
But high turnover also undercuts the ability of Eaton and his coworkers to sustain a push for changes at Amazon.
Amazon turnover rate drivers#
The high turnover among the roughly 300 workers who sort packages for delivery by Amazon’s army of “last mile” drivers makes it difficult for Eaton to get to know people.
Amazon turnover rate full#
Here's the full list of Fortune 500 companies, ordered by median employee tenure, based on data from Payscale.Working as a package sorter at an Amazon warehouse in the Bronx, it didn’t take Cody Eaton long to notice that few of his coworkers seem to stick around for long. Please note that in this chart "median tenure" data is not on the same scale as the chart pictured above. Here is a chart of the twenty companies with the most loyal employees, as ranked by Payscale. Here is a chart of the 20 companies with the least loyal employees, as ranked by Payscale. "Some of the firms on list are there, because they're a hot market." This means that the industry is hot and the economy is improving," she told Business Insider. "Workers might be job-hopping more than before. When workers are willing to hop from job to job, it is usually an indicator of an improving job market, Payscale’s lead economist Katie Bardaro said. Also among the top 20 companies with high employee turnover are Google, Inc (NASDAQ:GOOG) and Berkshire Hathaway, Inc (NYSE:BRK.A).Ī high employee turnover rate isn’t always because the company isn’t a good one to work for. With most new hires quitting after just 9-and-a-half months, the company with the least loyal employees is Massachusetts Mutual Life Insurance Company.
Amazon turnover rate tv#
Steven Barker, who worked on ’s X-Ray for TV and Movies, said in his letter that the company has a policy of hiring temp contract workers who are let go after 11 months to save on benefits like medical coverage and paid vacation days.Įven so, ranks only second among Fortune 500 companies with the highest employee turnover rates, according to a special report by Payscale titled “ Companies with the Most & Least Loyal Employees.” A former (NASDAQ:AMZN) contract worker recently berated CEO Jeff Bezos in an open letter, criticizing the company’s temp-hiring policies.
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