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Amazon fears it could run out of warehouse workers in the US within two years, according to leaked reports.
First reported by Recode, the retail & logistics behemoth said in an internal research report: “If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024”.
How well founded are the concerns? Data previously reported by the New York Times shows that, pre-pandemic, Amazon was losing roughly three percent of its workforce weekly, or 150% annually. Comparatively the annual average turnover in transportation, warehousing and utilities was 49% in 2021, and 64% in retail services.
In the past, ex-chief Jeff Bezos actually welcomed high turnover, describing the idea of having too many long-term staff as “a march to mediocrity” as these workers were more likely to become complacent.
However, at present, the demand for talent in the US is growing.
As reported by Reuters, U.S. job openings fell in May, pointing to a still tight labor market, but a a survey from the Institute for Supply Management showed that businesses complained they were "unable to fill positions with qualified applicants," and that "demand for talent is higher."
Put simply, there are more opportunities for workers beyond Amazon. And as the US’s second largest private employer, there might soon come a time when there simply aren’t enough fresh candidates to replace the rapidly exiting workforce.
So how can Amazon avoid running out of workers in the coming years? According to Recode, “raising wages and increasing warehouse automation are two of the six “levers” Amazon could pull to delay this labor crisis by a few years”.
Ultimately, Amazon can keep hold of more workers by creating a more fulfilling work environment, offering better pay and work-life balance, and avoiding pushing staff to burnout level.
After all, it was only last year that Bezos told shareholders “we are going to be Earth’s best employer and Earth’s safest place to work.”
Making strides towards this would be a good place to start, if Amazon wants to avoid running out of employees.
