In Phoenix the problem is different. There, Amazon does not have as much competition

In Phoenix the problem is different. There, Amazon does not have as much competition

In Phoenix the problem is different. There, Amazon does not have as much competition,

In Phoenix the problem is different. There, Amazon does not have as much competition, but the turnover level of its warehouses is so high that it is close to exhausting the available workforce for jobs of the nature that it offers. To a large extent because many of the professionals who have already worked in the e-commerce giant do not want to return.

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Other areas that the investigation has indicated as the imminent risk of lack of workers are Memphis, Tennessee, or Wilmington, Delaware.

Possible Solutions. Amazon has already taken the initiative to try to solve the problem of labor shortages. Last year they decided to raise the minimum wage for warehouse workers from $15 to $18 an hour, vowed to rethink their productivity measurement system (which US authorities blamed for a significant portion of injuries among employees of these facilities), and assured that they had invested 300 million dollars to improve the safety of their workplaces.

In addition, the internal report indicates that there is also room for improvement in the hiring processes since it was discovered that 9% of the applicants were rejected because they were former employees who were not allowed to re-enter because they had tested positive. drugs or because they had a criminal record. In fact, Amazon has already taken a step in this direction, announcing a year ago that it would exclude marijuana from its drug tests.

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Finally, the internal document points out that it would be a good idea to give more weight to the human resources team in choosing the locations of the new warehouses, and that these are not chosen only for their logistical advantages, but also based on the hand of work available nearby.

Contrasts. The lack of labor in some locations contrasts, however, with other regions where Amazon has publicly claimed that there are surplus warehouse workers. As we already explained in Xataka, the considerable increase in electronic commerce activity and the high number of casualties caused by the coronavirus pandemic led Jeff Bezos to expand both its logistics staff and its facilities. In fact, from 2019 to 2021 Amazon increased its workforce by some 800,000 workers worldwide, according to Statista.

But now, with sick leave declining and online shopping receding, some of their workforces are oversized and need to downsize. In the case of workers, Amazon has already indicated that the aforementioned high turnover will provide a solution to excess staff in the short and medium term, while for underutilized warehouses it is already looking for companies to rent them.

The warehouses affected by this excess of workers and space are located in New York, New Jersey, parts of California, and Atlanta.

Amazon is one of the largest employers in the world. According to Statista, at the end of 2021, it had approximately 1.6 million contract workers globally. A very important part of them is dedicated to logistics tasks in the warehouses of the e-commerce giant, where there is an important peculiarity: the turnover rate is very high and not many professionals exceed the contract year.

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By Olivia Bradley

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