--- title: Amazon’s unique hiring problem, explained - The Hustle description: Why the company is running out of workers. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/1628935058-HS-News-Brief_2022-06-20T230158.029Z-scaled.webp --- # Amazon’s unique hiring problem, explained ![Rob Litterst](https://thehustle.co/wp-content/uploads/2023/01/Rob-Litterst-pic.png?width=48&height=48&name=Rob-Litterst-pic.png) [Rob Litterst](https://hs-sbup.thehustle.co/author/rob-litterst) [Rob Litterst Twitter profile ](https://twitter.com/robbylit) Published: June 21, 2022 Updated: October 11, 2023 Over the years, Amazon’s obsession with customers has helped it scale its world-class delivery services. (Who wouldn’t want their groceries dropped off in [13 minutes](https://www.rd.com/article/amazons-fastest-grocery-delivery/)?) ![Amazon’s unique hiring problem, explained](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1628935058-HS-News-Brief_2022-06-20T230158.029Z-scaled.webp?width=595&height=400&name=1628935058-HS-News-Brief_2022-06-20T230158.029Z-scaled.webp) But providing exceptional customer service hinges on having the workers to carry it through, and Amazon may be [running out of them](https://www.vox.com/recode/23170900/leaked-amazon-memo-warehouses-hiring-shortage), per *Recode*. #### **A leaked internal memo…** … suggests the company could run out of candidates to staff its warehouses by 2024. The problem is twofold: - **Rapid hiring:** Amazon’s workforce doubled from ~800k to ~1.6m employees from 2019 to 2021. - **Rapid turnover:** Many Amazon jobs are viewed as transitory — the company churns through ~3x more workers than competitors. (Is [Bezosism](https://thehustle.co/09152021-bezosism/) to blame?) If you’re wondering how it’s even possible for an HR department to hire so many people so fast, you’re spot on — Amazon workers have been hired (and fired) without talking to a [single human](https://onezero.medium.com/i-got-a-job-at-an-amazon-warehouse-without-talking-to-a-single-human-c22beeeb53d6). #### **Rapid hiring and firing…** … may have put Amazon in this mess, but the company has options to get out of it, like: - **Relaxing the rules:** In places with a higher risk of worker shortage, Amazon’s been more lenient about its stringent workplace policies. - **Increasing pay:** Internal research at Amazon found that every dollar added to its minimum wage attracts 7% more workers into its hiring pool. Following that logic, an increase of $1.50/hr would extend Amazon’s runway by another three years. - **Better planning:** Amazon’s HR division believes the company can improve the situation by ensuring new warehouses have adequate local labor pools. Another possible solution? Doubling down on automation. #### **Robots…** … are nothing new to Amazon, which [purchased](https://pitchbook.com/news/articles/ma-flashback-amazon-announces-775m-kiva-systems-acquisition) manufacturer Kiva Systems in 2012 — a deal that’s reportedly saved Amazon billions. The company has an internal goal of increasing productivity by 25% by 2024 strictly through improved automation. By then, if current hiring trends continue, a robot-dominant workforce may be Amazon’s only option. 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