Tena Lyons, MBA’s Post

Really interesting seeing some of the comments made by Amazon employees on posts about the recent RTO announcement. If you haven't heard Amazon are back in 5 days a week. It looks like Amazon have decided that either a large scale staff exodus is acceptable and the brand still carries enough cachet that backfilling real talent won't be an issue, or they have decided it won't be a problem and people will grumble but stay and still do a good enough job. I suspect the first. The second sounds like insanity. Is there another option? The really really really interesting thing though are the comments on these posts from people to who claim they are currently in the recruitment process for Amazon and are still being told they can work from home 2-3 days a week. If true, is it because Amazon are deliberately creating a two tier system? Do they expect to tell the new employees on day one that actually it's in the office 5 days a week? Is Amazon recruitment under it's own, different pressures from the senior people leaders are are offering what the market demands to get them in the door and hit their own targets? Obviously, Jeff and I are mates (I sent him a direct email once and got a response), so I am sure there area some really interesting perspectives at the top of the house within Amazon on this.

A huge thank you to Amazon for their announcement overnight that all their staff will be required to be back in the office five days per week from January… A true bastion of putting their staff first above profits. I have always greatly admired how they’ve looked after their people. Particularly their warehouse teams and drivers, who have to work back-breaking hours in horrific conditions just to keep their business model afloat. Conditions so bad that they’ve ploughed millions of dollars into litigation just to fight their own staff who are trying to improve things. If you ever needed a clearer example of an employer putting profits over people. An example of how NOT to treat your staff - it’s Amazon. So thank you, Amazon - I can’t think of a better advert for more remote and flexible working than you making this move.

I read the message from Amazon CEO, Andy Jassy, to his employees about their pending full time return to office. Here’s my take: “...continuing to make progress on our cost structure and operating margins...” – we have overspent and we are cutting costs. “The number of people we’ve hired the last 6-8 years... it’s pretty unusual...” – we have over hired. “...increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. Having fewer managers...” – we could do with letting some people go. “...we’ve decided that we’re going to return to being in the office...” – feel free to leave if you don’t like that. Andy is clear in his message that he wants the company to be “scrappy”, “frugal” and less bureaucratic, although it’s a bit hard to position yourself as the scrappy-underdog-start-up when you did $500bn in revenue last year. It’s a shame, people will leave. But in the short term that could be what he wants for the business. Amazon will always have people queuing up to work for them. Because they are Amazon... 

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Amazon strongly believes “Cash is King” for employees and for company. If someone could explain why a company should freeze the base pay because the stock prices are rising rapidly, and employees are making money by selling shares. Isn't it a fundamental aspect of the risk and reward philosophy? 1.    Was the base pay growing too much from 2021 to 2023, and market benchmark stagnant during Q4 of 2023 and the first three months of 2024? 2.    Is it because the total compensation, base plus stocks, increased a lot because the stock prices went up by 85% last year? This is evident and easy to explain. The official statement says it's mainly because of Point No. 2, but I think No. 1 played a big part in this decision. They've done this before and probably have strong evidence to show that this won't dent the productivity. Amazon officially announced that newly promoted employees will receive base pay increase and I think that must be driven by lower pay position in new higher grade. #Pay #Compensation #Reward #TotalReward

Amazon is often vilified by politicians. But let's be honest, politicians are largely 'those who haven't' ever run a business. Business is complex, particularly a business like Amazon. I am not aware of many companies who can hire 250K people at a snap. Yes, these are seasonal jobs, but those who join, and perform well, will likely find a permanent place. Pretty damn impressive to me. As for the zero tax rant from the likes of Elizabeth Warren and AOC, last year Amazon paid $4B in state taxes, $7.5B in Federal income taxes and $22B in state income taxes. Thats $33B. Everything they paid, and anything they didn't pay, that some think they should have, was 100% allowed and legal, per US tax code (as disastrous as that might be.). My point is simple: Amazon is a complex business that employs 1.1M people in the US. Politicians might want to make witness with a bit more fact-based perspective as it relates to Amazon.

amazon pays up to 5000$ to an employee to leave but why? it doesn't make sense because the employee turnover cost is significant as direct expenses like recruitment, hiring, and training make up the cost of the replacement. but wait... when asked by the spokesperson of Amazon about this "pay to quit" program this is what they have to say, "We only want people working at Amazon who want to be here. in the long term, staying somewhere you don't want to be isn't healthy for our employees or for the company." so Amazon figures that providing attractive escape routes to unhappy and dissatisfied employees will save money in the long term and increase productivity ps: this action has a psychological impact on the employees who choose to be in the company. when given a forced choice people tend to align with the choice they made in case of Amazon the employees solidify their allegiance to the company and will continue to work there for a long time.

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There’s been a ton of chatter about the recent Amazon RTO announcement. Yet another attempt at an ultra-large company mandating employees return to the office 5 days per week. ...and so begins all of the resulting arguments about the implications of the announcement. Eye roll. Yawn. It’s groundhog day all over again. It changes literally nothing. It won’t change the behaviors of nearly anyone in the company. We’re 4 years into this game, and people have already self-selected into their desired work mode. Amazon will continue to have… - Some portion of its workforce be 5x/week in-office - Some portion of its workforce be fully remote - The vast majority be somewhere in the hybrid middle (which I’ll satirically define here as anything greater than 1 day/year in office and less than 5x/week in-office). Agree?