“High Employee Turnover rate at Amazon!!”
Prepared by: Ali Haidar
Instructor: Imad farran
High Employee Turnover rate at Amazon!!
[Pick the date]
Page 1
“High Employee Turnover rate at Amazon!!”
Amazon Rewards Employees Who Stay — but Turnover Is Still High
Introduction
The most common problem found in the business world now days is of high employee turnover
ratio. Retaining the best employee is the most difficult task organization has to face these days.
Motivation, reward, and recognition are the key elements required to achieve a good retention
rate in the organization
A high employee turnover rate implies that a company's employees leave their jobs at a relatively
high rate. Employee turnover rates can increase for a variety of reasons, and turnover includes
both employees who quit their jobs and those who are asked to leave. Average employee
turnover rates differ among companies.
High Employee Turnover rate at Amazon!!
Page 2
Research problem
Amazon Rewards Employees Who Stay — but Turnover Is Still High
Amazon.com 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 high employee turnover rate isn’t always because the company isn’t a good one to work for.
When workers are willing to hop from job to job, it is usually an indicator of an improving job
market.
High Employee Turnover rate at Amazon!!
Page 3
Importance of Study
Given the turnover rate problem at Amazon, we have conducted some research on empirical
articles regarding the impact of leadership behavior on followers’ needs satisfaction, leadermember exchange (LMX) quality and job satisfaction. From that background, we suggest
practical solutions to increase employees’ job satisfaction, affective commitment and work
engagement in order to decrease Amazon’s turnover rate.
Research Question

Does Amazon's "only the strongest survive" employee-retention policy make for a better
company or improved customer relationships?

If Amazon has a bad work environment with high attrition rates, why does it continue to
be so successful? How are they continuing to innovate even as other companies treat their
developers in a much better light?

What are the reasons that make employee take a decision to leave this international
company?

Is HR department is the site who responsible for this result?

Is there any kind of discrimination that lead for this result
High Employee Turnover rate at Amazon!!
Page 4
Literature Review
"Workers might be job-hopping more than before. This means that the industry is hot and the
economy is improving," she told Business Insider. "Some of the firms on [the high turnover] list
are there, because they're a hot market."
(Payscale’s lead economist Katie Bardar)
Recent survey of 350 human resource managers shows that employee turnover is becoming one
of the most critical workplace issues. Sixty percent say that skilled-person power is “scarce”
Companies that take the problem seriously and implement programs to ensure employee
satisfaction have the highest retention rates.
(E.McDargh)
Transforming Your Workforce from High-Turnover to High-Retention. He speaks at
conferences, conducts management training and is the President of a management. Management
promotes someone who lacks training and/or necessary experience to supervisor, alienating staff
and driving away good employees.
(Gregory P. Smith)
Many leading companies place more effort in employee retention, most are clueless. They accept
employee turnover as a normal part of doing business. High turnover organizations spend
disproportionate amounts of resources on recruiting and replacing their workforce, while smart
organizations invest in employee retention
(Gregory P.Smith)
Using intrinsic rewards to increase employee commitment and retention is achievable in any
organization. While it is both an art and a science, it has basic components of human nature that
are fundamental. When these intrinsic approaches are understood and ingrained in the company
culture, productive employees remain
(Thompson, 2004)
High Employee Turnover rate at Amazon!!
Page 5
METHODLOGY OF THE STUDY
After the objective of the study has clearly stated, the next step in formal research
project is to determine the source from which the data is required to be collected. The data
collection is an interesting aspect of the study achieving data effectively the information
consists of two types of data. The diagram is as follows:
Data collections:
a) Primary data:
The primary data are those, which are collected freshly and for the first time, from the
employees directly. It is collected through the following methods.
1. Questionnaire: A structure of questionnaire was prepared and distributed among
the employees & workers.
2. Interview:
Personal
interviews
and
interaction
with
the
employees
and
contractor labour
b) Secondary data:
The secondary data are those which have already been collected by someone or else
which have been passed through statistical process. Sources of secondary data can be
categorized into two broad categories named published and unpublished statistics. Various
sources are available namely books, synergies monthly (Chakaravahini) books etc. and also
collected from various files, records and synergies casting Ltd.
High Employee Turnover rate at Amazon!!
Page 6
Size:
A sample of 100 employees has been selected .Although it looks to be a small sample
keeping in view the large number of employees it has to be limited. Even then the
sample size is not considered to be small. It is enough to draw conclusions.
Type:
Since employees from all levels (strata) namely the top level, the middle level, and the
lower level are bound to experience stress, the sample has to include employees from
all levels. Stratified random sampling technique was selected while preparing
questionnaire as this was the only technique that helped to draw conclusions accurately.
Company backgrounds
High Employee Turnover rate at Amazon!!
Page 7
Amazon
Amazon, founded in 1994 by current CEO Jeff Bezos, is one of the largest online retailers in the
world. The company, which is headquartered in Seattle, Washington, USA, has retail websites
and offers shipping in 75 countries around the world. In twenty-one years, Amazon has expanded
its industry from selling books to merchandising music, movies, games, electronics, clothing,
groceries, toys, jewelry, health & beauty care products and sports equipment online.
The company also offers its own line of products such as the Amazon Kindle and the Fire Tablet
in an effort to reduce extra costs of middlemen. Amazon is taking steps to accomplish its mission
“[to] be the Earth's most customer-centric company where people can find and discover anything
they want to buy online.” To reach that goal, Amazon utilizes growth as its corporate strategy to
expand to new markets including China and India and provide new innovative services such as
cloud computing. In addition, Amazon focuses on a cost leadership business strategy as it offers
higher quality brand name products for lower prices.
Furthermore, Amazon employs differentiation because the company offers its products including
the Amazon Kindle with a unique e-ink display and the Amazon Echo with a cloud-based voice
service. In the third quarter of 2015, Amazon’s net sales increased 23% ($25.4 billion). In
quarter 3, 2015, Amazon reportedly hired 222,400 employees (a 49% increase compared to the
third quarter in 2014). However, with the median employment tenure of 1.0 year
(PayScale.com), Amazon has the second least loyal employees among the Fortune 500
companies.
How HR department at Amazon act to avoid employee turnover
High Employee Turnover rate at Amazon!!
Page 8
Amazon has embraced a few practices that demonstrate its altered course as far as HR
administration. Its demeanor towards failing to meet expectations representatives has changed. In
any case, while Microsoft has been more open to grasp assorted variety hones, Amazon is still a
long way from being as open and differing. As far as sex and ethnic decent variety, Amazon is as
yet an under-entertainer. Notwithstanding, its progression towards supporting its failing to meet
expectations workers could imply that Amazon is prepared to make next strides towards
overseeing assorted variety and different parts of HR.
Amazon's record has not for the most part been great as far as HR administration. It is known to
be a white male overwhelmed association. In spite of attempting its best Amazon has not
possessed the capacity to control the high turnover rate. There are different troubles too that
emerge from poor HR administration. The concentrate must be on keeping the representatives
glad and fulfilled to hold them longer. The issue with the administration styles of Microsoft and
Amazon has been that while they are notable organizations, they have been firm as far as
execution administration. This regularly prompts representative separation. Both the associations
have taken after an execution arranged procedure which likewise used to be the standard at
Apple.
Such societies and social standards inside the associations turn into a wellspring of
disappointment for workers abandoning them feeling crippled. On the off chance that Amazon
workers don't stay long with it, at that point it is fundamentally a direct result of the heartless
culture and administration rehearses. In any case, it appears weight from outer and interior
sources has worked. While it can't be known as a mammoth advance, still Amazon may have
ventured out dealing with its workers better.
Instead of utilizing the rank and yank framework, Amazon has put resources into execution
change designs that will enable it to better deal with its failing to meet expectations
representatives. Instead of tossing them out, Amazon is currently helping them perform better
with another preparation program called Pivot.
High Employee Turnover rate at Amazon!!
Page 9
In any case, this could be an endeavor to oversee it workers and its notoriety. As a business,
Amazon has been known for keeping up a situation that favors just the best entertainers.
This is a positive advance by Amazon which has been known for remunerating the best
entertainers and terminating under entertainers. The most shrewd activity for such huge
managers is to adopt an adjusted strategy. On the off chance that they subject their workers to
high weight circumstances, they should likewise look after their prosperity and profession. This
will lessen the turnover rate. Setting excessively extreme execution measures may be beneficial
fiscally, yet as far as HRM, it has dependably prompted withdrawal.
All things considered, Amazon may need to make more effective strides like Pivot to help its
workers. It is on account of Amazon still has a poor notoriety as far as assorted variety. It is
known for being a male ruled association. To change its picture as a business, Amazon would
need to center after empowering assorted variety, unwinding execution gauges and utilizing
better worker engagement and maintenance procedures. Projects like Pivot simply stamp a begin.
For organizations like Amazon which have dependably removed execution from workers, there
is a need to make a culture that cultivates both execution and fulfillment.
While the weight level inside mechanical associations isn't a concealed actuality, you likewise
know some place excessively of pressure can influence organizations to lose their notoriety.
Aside from paying their workers well associations can likewise utilize procedures that can enable
them to flush out weight. Google has since dependably meandered itself more receptive and that
could likewise be the correct bearing for Amazon. Bezos isn't occupied with forcing execution
from his representatives yet he realizes that the way of life he has made is extreme yet workers
are not unbreakable.
High Employee Turnover rate at Amazon!!
Page 10
Conclusion
Nine observational articles feature the significance of the pioneer devotee relationship and
initiative style on supporters' engagement and responsibility regarding the association. Above all
else, pioneer supporter relationship is affirmed by an examination to be an essential part in an
amicable workplace that advances duty. Pioneers' prototypic impression of supporters is
emphatically identified with a high pioneer adherent relationship quality which can expand
devotees' activity fulfillment. Devotees who ooze prototypic attributes, for example, dedicated,
steadfast, solid and energized are seen as compelling adherents and are probably going to build
up a top notch LMX relationship.
This relationship benefits devotees as they will get more help and more open doors for proficient
improvement like testing and intriguing assignments. Additionally, their potential will be all the
more effectively perceived and their requirements will be better fulfilled. Moreover, amid
difficult circumstances of, for example, pregnancy or basic occasions, great pioneers have a
tendency to feel for devotees and react with help, and in this manner upgrade the leader follower
relationship. Since these pioneers make sincerely agreeable conditions and give support and
direction, devotees show further responsibility as they want to respond the gainful treatment they
have gotten.
By upgrading workers' inspiration, helping them accomplish their objectives and giving positive
thinking, transformational pioneers significantly affect supporter conduct and would thus be able
to fortify representatives' dependability. Notwithstanding pioneer adherent relationship, peerrelationship is additionally critical in expanding the devotees' authoritative duty. A hypothesis on
this relationship is center self-assessments (CSE), which alludes to examinations people make
about their skill and capacities. People who show high CSE introduce themselves with
constructive conduct and assess themselves as skillful. Also, high CSE adherents trust that they
have control of their employments and straightforwardly express their abilities. Since they have
control, these people will probably see their authoritative condition on a more constructive point
of view.
High Employee Turnover rate at Amazon!!
Page 11
CSE impacts can be increased by transformational authority practices. Transformational pioneers
can mentally empower these adherents and in this way enhance their dedication and occupation
fulfillment. Likewise, peer connections additionally help fortify CSE. High companionship
centrality is a vital angle in making an agreeable domain in which representatives are more
dedicated.
Companionships in the work environment furnish representatives with help, consolation and
support against unfriendly impacts of employments. Dissimilar to in an unfriendly workplace
where representatives are always scrutinizing each other, in an amicable workplace, workers can
help their companions in proficient advancement and undertakings achievement. Another
viewpoint with respect to turnover rate can be drawn upon the self-assurance hypothesis and
transformational initiative (TFL). TFL alludes to pioneers who rouse adherents and get them
occupied with their employments. Transformational pioneers enable their adherents through four
segments: glorified impact (filling in as a convincing individual that supporters regard), rousing
inspiration (communicating the vision of the association to enable devotees), scholarly
incitement (urging supporters to think of novel arrangements) and individual thought (reacting to
adherents' individual contrasts).
Self-assurance hypothesis is a very much upheld motivational hypothesis created upon three
essential needs of adherents: self-governance, fitness and relatedness. This hypothesis features
enormous motivational impacts of the fulfillments of the requirements for independence (a
feeling of opportunity in finishing the assignments), for ability (a feeling of authority and
strength) and for relatedness (a feeling of essentialness). The exploration comes about affirm that
TFL emphatically intercedes the fulfillment of each of the three needs (self-rule, ability,
relatedness), which at that point influences work fulfillment and subsequently work engagement.
A thought got from the structure of self-assurance hypothesis is self-concordance, which portrays
the degree to which individuals' veritable advantages line up with their vocation goals.
High Employee Turnover rate at Amazon!!
Page 12
Two investigations affirm beneficial outcomes of TFL on workers' self-concordance. On the off
chance that pioneers adequately pass on hierarchical societies, missions and dreams, their
representatives will better comprehend the noteworthiness of their work in connection to the
organization's objectives, have superior self concordant mindfulness and in this manner
contribute all the more energetically. This impact is straightforwardly identified with the
requirement for relatedness, which is considerably more critical as organizations these days bend
over backward to advance assorted variety by selecting from everywhere throughout the world.
Hierarchical societies, missions and dreams can strongly bond individuals from various
foundations.
Additionally, high self concordance recognitions between the associations and the workers will
attach the representatives to the organizations notwithstanding when the pioneers take off. As the
investigations attest, enhanced self-concordance can build the workers' self-sufficient inspiration,
work fulfillment and authoritative duty. Different examinations additionally shed new light on
the self-assurance hypothesis with particular impacts of each of the three fundamental needs on
supporters. The requirements for skill and relatedness are observationally affirmed to
considerably identify with work fulfillment and work engagement. In particular, the fulfillment
of the requirement for ability is decidedly connected with the self efficacy convictions, in which
workers feel sure about their capacity to achieve the assignment. At the point when pioneers give
workers chances to investigate their capacities, these devotees will feel trusted and enabled to
invest more energy.
As adherents endeavor to finish all the more difficult undertakings, they will bridle their activity
related ranges of abilities and enhance their self-adequacy convictions. Subsequently, adherents
will feel more able in playing out the undertakings and take part in the errands all the more
viably and certainly. Moreover, the satisfaction of the requirement for relatedness specifically
impacts full of feeling sense of duty regarding the pioneers. Transformational pioneers have an
abnormal state of individual thought which prompts a reinforced association amongst pioneers
and their supporters. The representatives' requirements for relatedness, as an outcome, are better
High Employee Turnover rate at Amazon!!
Page 13
satisfied and consequently elevate their full of feeling responsibility regarding the pioneers and
the associations.
All directed investigations affirm the two particular impacts of the fulfillment of the
requirements for capability and relatedness on self-viability convictions and emotional
responsibility, individually.
Recommendations:
From the collection of confirmation, we set forth the accompanying answers for enhance
Amazon workers' activity fulfillment and lessen the organization's turnover rates. The present
administration strategy at Amazon is unfavorable to the pioneer supporter relationship and thusly
the turnover rate. Consistently, Amazon supervisors need to terminate the minimum productive
individuals, who can even now be quite successful specialists.
Despite the fact that this training boosts Amazon's efficiency in the short run, it might prompt
representatives' doubt of their pioneers and loss of profitability over the long haul. This approach
additionally keeps pioneers from building kinships with their workers as representative’s fear
making awful pictures. The upsetting condition, therefore, may effectively trigger workers' goals
to stop if basic occasions affect them. Far more atrocious, this training can make representatives
take part in dangerous practices that lower Amazon efficiency like concealing critical data or due
dates from their associates.
Hence, we propose Amazon cancels the yearly staff contrasting with reduce the weight on
representatives and enable administrators to construct better associations with their colleagues.
Likewise, if Amazon keeps on completing this plan, the quantity of individuals who are let go
yearly will indicate that of intentional slackers and increment Amazon's turnover rate.
High Employee Turnover rate at Amazon!!
Page 14
Also, we recommend Amazon adjusts Anytime Feedback Tool with a superior way to deal with
enhance peer-relationship. Amazon is using the Anytime Feedback Tool with which workers can
make mysterious remarks about their partners. Despite the fact that this framework conceivably
expands the productivity with honest and precise appraisals from collaborators, it can brood
segregation and result in an unfriendly workplace.
Among differing groups of Amazon's representatives, individuals can be stood up to by conflicts
of qualities which result in one-sided and off base companion appraisals. Moreover, Amazon's
way of life which energizes useful clash can prompt individual clash between representatives of
various races, hues, sexes or religions. Directors may base their choices to flame a few
colleagues this stack positioning framework, costing Amazon an incredible arrangement in the
event that they remove the wrong ones. Additionally, this framework can trigger threatening vibe
in the organization as representatives are constantly suspicious of feedback from their
companions.
Be that as it may, kinships among partners, as indicated by the experimental investigation, give
passionate and additionally physical help and diminish turnover expectations. Accordingly, if
Amazon needs to exploit the positioning framework, we suggest that Amazon ought to use the
360 degree input device rather than the present one. Besides, the organization ought to sort out
holding occasions to improve connections amongst representatives and make an affectionate
workplace. In addition, known for putting gigantic weight on their specialists, Amazon should
actualize transformational authority in which pioneers can perceive the CSE quality and
necessities of its laborers.
Representatives who are not working up to the elevated requirements of their directors in view of
overpowering workload or outside elements (medical problems, pregnancy, and so on.) are
added to an execution change list. Workers leave the organization with low occupation
fulfillment and inspiration since pioneers neglect to comprehend their devotees or perceive their
potential. Subsequently, we propose Amazon endeavor to enhance work fulfillment by procuring
High Employee Turnover rate at Amazon!!
Page 15
transformational pioneers or executing a technique to prepare existing administrators into
transformational pioneers who can successfully disseminate undertakings in a reasonable and
sorted out design profiting every one of the supporters.
Another significant issue found at Amazon is its "client fixation" and worker carelessness. With
a specific end goal to give clients quick sending and incredible administrations, the organization
approached representatives to work for drawn out stretches of time. While Amazon tries hard to
satisfy each client, it ignores startling basic occasions happening to workers, who are likewise
vital to its prosperity. Despite what happens and whether they are normally great representatives
or not, anybody neglecting to work adequately enough for a timeframe will be put under
consistent recognition and faced with the danger of being let go. One article demonstrates that if
pioneers are strong of their representatives amid the season of basic occasions, workers will
create dedication and contribute all the more eagerly to associations.
Henceforth, to build standards for dependability, we prescribe those Amazon increment
representatives' advantages like empowering them to leave incidentally and administer to the
disease of their dearest ones without putting them under strain. From systems of TFL and selfassurance hypothesis, Amazon can enhance workers' self-concordance by means of minimal
effort approaches. A vast segment of Amazon's turnover rate originates from the distribution
centers where all the bundling forms happen. Representatives in this piece of the inventory
network tend to see their work as repetitive and depleting.
This low self-concordance is intensified by their discernment that their activity isn't essential to
the organization. At to begin with, it may not appear to be vital to determine this issue as these
representatives is low-gifted laborers and simple to supplant. Be that as it may, the cost of
executing strategies to enhance these workers' self-consistent viewpoints is such a great amount
of less expensive than the cost of acquiring new representatives. The strategy to enhance selfconcordance can be executed by coordinate administrators and group supervisors of the
distribution center representatives.
High Employee Turnover rate at Amazon!!
Page 16
The immediate directors can frequently come to converse with workers about the significance of
their business to the organization in general. Without its workers, Amazon items could never go
to the hand of customers. These representatives' efficiency likewise straightforwardly influences
Amazon's benefit which would then be able to influence their pay. All these indispensable parts
of the representatives during the time spent understanding Amazon's vision ought to be
frequently examined with the laborers through quarterly workshops. Getting clients to share
great encounters they have with Amazon's representatives or giving little rewards to energize
workers' assurance can likewise be extraordinary approaches that Amazon can execute to build
workers' self-concordance.
These means, if actualized, would expand representatives' dedication and diminish the turnover
rate. Another real issue in Amazon's administration framework is the absence of help for
representatives' expert advancement. At the point when new representatives are confounded
about how to manage the function and request help, their administrators are not responsive. They
let these workers battle through this progress procedure all alone. This style of administration
causes awkwardness in the fulfillment of the three fundamental needs. The representatives are
given unreasonable measures of self-sufficiency while the requirements for skill and relatedness
are not satisfied. Everyone needs flexibility, yet just to a fitting sum.
Consequently, Amazon's supervisors ought to energize the way of life of supporting workers to
diminish turnover rates. Being helped, representatives will feel more identified with the
organization and in addition more capable to build up their work abilities. The steady culture can
be actualized through inside correspondence without much additional expenses. Amazon's
pioneers can discharge official declarations from the official board, month to month reminding
messages and talks on supporting collaborators amid general gatherings to build up this culture.
A predictable outcome can be enhanced hierarchical duty and decreased turnover rates.
High Employee Turnover rate at Amazon!!
Page 17
References

Amazon's Annual Report - SEC. (n.d.). Retrieved from
https://www.sec.gov/Archives/edgar/data/1018724/000101872415000006/amzn20141231x10
k.html
 Amazon Media Room: Overview. (n.d.). Retrieved from
http://phx.corporateir.net/phoenix.zhtml?c=176060&p=irol-mediaKit
 Amazon Media Room: Press Releases. (n.d.). Retrieved from
http://phx.corporateir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2100420

Bono, J. E., & Judge, T. A. (2003). Self-concordance at work: Toward understanding the
motivational effects of transformational leaders. The Academy of Management Journal, 46(5),
554-571.
 Dixon, M. L., & Hart, L. K. (2010). The impact of path-goal leadership styles on work group
effectiveness and turnover intention. Journal of Managerial Issues, 22(1), 52-69.
 Kim, T., Liden, R. C., Kim, S., & Lee, D. (2015). The interplay between follower core selfevaluation
and transformational leadership: Effects on employee outcomes. Journal of Business and
Psychology, 30(2), 345-355. doi:10.1007/s10869-014-9364-7
High Employee Turnover rate at Amazon!!
Page 18