Customers will never interact with the person that boxes their amazon shipment. Those individuals are not seen as people, but just a necessity to continue operations.
Costco's Jim Sinegal steadfastly refused to cut employee pay and benefits to satisfy investor's demands. That kind of "employee first" thinking starts at the top and filters down throughout the entire organization.
Even if you're being charitable towards Bezos' attitude towards employees, it's clear that people aren't his focus. He's focused on automation, growth and performance. That kind of thinking also starts at the top, and filters down through the rest of the organization.
I remember reading a profile of Zappos around the time they were acquired by Amazon, that highlighted the differences between the two companies. Zappos built its brand on legendary customer service, and there are all kinds of stories about how the retailer empowering its reps to offer customer service that goes above and beyond. Things like sending flowers to a customer's hospital room.
In contrast, at Amazon, every time a customer has to interact with a human, it's seen as a failure. The goal is to remove human contact from the sales process as much as possible.
With that attitude, it's no wonder that employee wellbeing isn't a major focus.
Also know a past Costco corporate employee and only had a positive impression.
EDIT: it does go to the top. The CEO resisted investor pressure to reduce wages and perks. Mad respect to him for treating his employees like people instead of cogs.
Costco has far fewer SKUs and sell in bulk only high quality and price items. So they can afford to pay well because they only entertain customers which are spending far more for fewer high selling items and not few dollar obscure replacement parts.
(This is not saying they shouldn't treat employees better, just that the reason they employ so many people in the first place is bc of reinvesting and expanding to more areas. It's not as simplistic as, 'if they have the money they should spend it on people instead of business')
There will always be someone who has less and is therefore satisfied with less, and companies will capitalize on that to offer the bare minimum to get the job done. Ultimately the person who'd do the job for more gets no job, the person doing the job for less doesn't get a fair compensation, and the only party benefiting is the company.
(Well, "crappy". Aside from the low pay and bad hours, it's alright. I haven't seen any of the abuses that get talked about, although I'm sure they happen elsewhere.)
Over half of new hires quit or get fired - I'm not sure which, but probably both - in their first two months, and they mostly hire for 20 hrs/wk part-time schedules. So it's not hard to see why Amazon is an easy place to find work at.
I've applied to a few hundred jobs in my life, ranging from software development to slinging lattes, and Amazon is the only company that's ever even given me an offer. Most of my male friends are in similar positions: they're pretty smart, but they can't get anything better than FC, retail, truck driver, that sort of thing. (Truck driver was, in terms of pay, the best outcome I know of, but that was one guy and he killed himself over it last year.)
The impression I get from my (generally more successful) female friends is that the only things that matter nowadays are networking and credentials, and most public job postings are only put up as formalities.
It is a simple fact I stated. Reinvesting in new areas allows them to employ more people in those areas. This isn't an opinion, it's just a fact.
> If you can't grow your business to be a monstrosity without treating your employees like slaves, your business should not exist.
Hardly any companies make it to be "a monstrosity" in the first place. Jeff Bezos did it by reinvesting and expanding. Apple did it with ridiculous margins and taking advantage of people in foreign countries (who literally jump off the roof of FoxConn to end the suffering). Microsoft did it with monopolistic business practices. IBM and Google as well. Giant clothing companies to this day still get caught with their hands in sweatshops. Banks milk people for fees and have the power to crash the stock market through stupid gambles, taking peoples savings down with them. Airlines take advantage of their employees by paying almost nothing and customers by merging until there is very little competition and then gouging fees from people. Same with ISP's.
The idea that "a business shouldn't exist if it can't get gigantic without unfair practices, taking shortcuts and hurting and taking advantage of people" is a moral one, but not realistic in today's world.
Should it be changed? Yes. Of course.
But all I did was state a fact. It's how the economy works. And Amazon would not employ as many people as it does now without the reinvestment in new areas and taking shortcuts in other areas, like how they treat their employees. Just a fact. A fact that is despicable. but a fact nonetheless.
Where is the evidence? Whose to say how much faster they would have grown without the employee misery and churn?
Basic math?
If you have $1 million to spend (as an example), and you can open a new store and hire more employees at a lesser rate, or pay your current employees more and not open a new store:
opening a new store = growth and more people hired + more revenue
paying your current employees more = less "employee misery and churn" and no growth + less revenue
I'd argue it's more like *slower growth, which should be acceptable, especially at Amazon's size.
Also, I'd in fact argue that making sure your employees have time to go pee wont significantly hurt your bottom line. At most you might need to hire a few few more people. Amazon operates at numbers big enough that this shouldn't be a considerable expense.
> I'd argue it's more like *slower growth
Exactly my point, just in a different context. I was speaking on a much smaller scale than Amazon as an example.
If you own a restaurant, and can open a second location and hire more people, you are reinvesting and expanding and bringing in more revenue, which you can reinvest to open more locations. If you pay your current employees more instead, then you aren't opening that new location, and there is no growth (or much smaller growth if your employees do a better job, which would be incremental compared to opening a second location), but people are happier and less taken advantage of.
It's a fine line to walk, and very rarely do companies get it right. Costco is an example of a company that does get it right. There are, unfortunately, far more examples of companies that don't.
The person that replied to me asked for evidence of how reinvestment causes slower growth than paying people more. That side conversation had nothing to do with Amazon.
> Also, I'd in fact argue that making sure your employees have time to go pee wont significantly hurt your bottom line
No one is arguing that. In fact, I agree with it.
I see other large tech companies (Google, Apple, Facebook) with these huge profit margins every quarter, year after year. Amazon has never made a dent in any of them, nor made a sizable profit themselves, despite all of that "opportunity."
Perhaps he's not speaking of tech but of retail, in which case the margins of companies like Walmart are already incredibly tight.
https://www.costco.com/Post-Honey-Bunches-of-Oats-with-Almon...
https://smile.amazon.com/Honey-Bunches-Oats-Almonds-14-5-Oun...
https://www.amazon.com/gp/product/B00IAE91AI/ref=afx_dp_ingr...
I feel like that's pretty revisionist. For a very long time, shopping at Amazon was about price first, variety a close second, and convenience a very distant third. I doubt so many people would have developed a habit of shopping there so much if the advantages were truly "convenience and variety" first.
Amazon's prices have gotten much less competitive the last several years, which has disrupted the value proposition that caused many people to choose it.
I find it hard to believe that free 2 day shipping and free customer-first returns did not sway opinions though since it basically pushed the entire industry forward.
They're all okay losing money in the short temp to capture online consumers
They have the money to make huge acquisitions and invest in planes, drones, etc. They have the money to treat their employees decently.
I fail to see the point of that comparison really.
That's being presented as some giant perk nowadays, but I don't really get the appeal. You're buying something sight-unseen and hoping what you'll get in a few days will match the mental images formed from the pictures. You can't size up the item in person, you don't get an excuse to leave the house, and you have to wait longer. If you don't like it, you have to go through the hassle of boxing it up, printing forms, and finding a post office.
I actually looked at my Amazon order history, it's beyond boring: soap that was out of stock last time I was at a physical store, washing machine cleaner, an OXO cutting board and a cheese grater, Anker USB charger, etc. I would never choose to go to a store and compare for any of these items and was quite happy to have them show up downstairs. If I do need to return I just print off a piece of paper and take the same box back downstairs (from my perspective way easier than having to go back to a store and wait in line).
That margin is Amazon's opportunity. /s
https://www.goodreads.com/quotes/706779-your-margin-is-my-op...
We often talk about the importance of working for a profit center not a cost center within a business. Amazon fulfillment is a great example of this.
Costco has a different target market than Amazon. They target relatively well off people who can afford the upfront cost of a membership and have the capital to buy goods in bulk. That customer base places a relatively high value on customer service.
It was also implied that there had been capture of first level supervisory positions who played favorites.
Their warehouse employees are extremely replaceable and amazon knows this.
With Amazon, it's hard to imagine all the smart people that are being paid well, and used indirectly to squeeze the folks on the "factory floor", however unintentional.
I worked at Microsoft during Balmer's reign. The founder/CEO's attitude dictates the work culture. And causes harm if it's bad.
I live in Seattle and often hear this joke: Being an Amazon customer is the best. An investor is great. An employee not so much.
I worked at Amazon in 2005 and was a customer before that. But I can't support Bezos anymore because he negatively impacts how people are treated. It's not on par with Nike's sweatshops in the 90s, but I still canceled Prime and stopped buying things from Amazon.
(Disclosure: I am a software engineer in AWS, and I love my job. Sorry, can't speak for non-tech jobs. Opinions are my own.)
Consider a mid-level software engineer hired 4 years ago, on April 16 2014, with a salary of $100k. A typical stock grant at hiring for a mid-level software engineer in 2014 might be $400k over 4 years, backloaded so most of it comes at the end; on April 16 2014 the share price was $323, so the grant would have looked something this:
Apr 16 2015: 154 shares @ $323 = $50k = $150k total comp
Apr 16 2016: 248 shares @ $323 = $80k = $180k total comp
Apr 16 2017: 371 shares @ $323 = $120k = $220k total comp
Apr 16 2018: 464 shares @ $323 = $150k = $250k total comp
Apr 16 2015: 154 shares @ $383 = $59k = $159k total comp
Apr 16 2016: 248 shares @ $625 = $155k = $255k total comp
Apr 16 2017: 371 shares @ $901 = $334k = $434k total comp
Apr 16 2018: 464 shares @ $1,440 = $668k = $768k total comp
Amazon (and Seattle in general) could be in big trouble if the stock price turns around. I don't think that's likely, but it's kind of scary to me.
If they are, holy shit. I thought the meteoric rise in housing prices around here was almost entirely due to the influx of people compounded by this region's seeming inhospitable allergy to building housing stock at anywhere near a reasonable rate.
But, damn, if your table is even within 80% of reality, I am floored. No wonder it's virtually impossible to rent or buy anything for a "realistic" (for me, and I make a pretty good income, or so I thought) price anywhere between Edmonds and Auburn. The rest of us, even those employed in the technology industry, simply cannot compete with that kind of cash on the barrel.
If this hypothetical employee quit on April 10th, 2018, they would not get the 464 shares (== $668k) on April 16th, 2018. They also would probably not get a comparable offer if they quit to join Facegooglesoft. So, if they quit, they lose out on hundreds of thousands of dollars. That's enough to keep many people even if the work is unpleasant.
I think growing housing costs are much more scarier for a worker than an idea that some engineer gets 200-300k less.
Why do technologists reliably chime in with completely irrelevant details of a technologist's experience of working for a tech company, in response to articles talking about how poorly those companies treat their non-technologist staff?
What does the one have to do with the other? "Amazon can't be all bad, if they aren't abusing (some of) the subset of their workforce that can meaningfully vote with its feet"?
EDIT: not singling you out specifically, but you did the thing here, so you get the follow-up.
Warehouse employees are cost centers. They're replaceable pseudo-robots that are filling in the gaps until the engineers mentioned above finish building the real ones. A new worker at a cheaper rate is objectively better than retaining one, because the number of boxes packed tends to increase inversely proportional with age and tenure. The company treats them accordingly.
The turnover rate is generally less than 2 years.
They work you like a dog but proof that you can 'graduate' from them gets you better offers afterwards.
Crazy system when you think about it.
I worked at Amazon for ~5.5 years, and it was fine. I wasn't in bliss, but it wasn't awful, it was fine. I eventually left not because conditions worsened but because my team's responsibilities eventually shifted to work I disliked enough to overcome the momentum (web ads), and I found out they have a very generous severance program if you know what to ask about.
What do you mean? Are you referring to the severance you get if you leave on a PIP?
Also I had been on an actual PIP before and I'm pretty sure that option wasn't mentioned.
All that said, I would advise that if you get put on a PIP, just take the severance right away. You're ineligible for a raise or additional stock grants in the cycle following the PIP.
Presumably both groups are vastly different regarding qualifications, income, ability to switch jobs and freedom to structure their work, so I think they should be taken separately when discussing workplace conditions.
(As an analogy, during the industrial revolution, the people that designed the machines probably weren't the ones that were working 18-hour days in hazardous conditions either.)
walmart.com is better designed that amazon.com. I don't know when that happened but you can take a look at two product pages for the same book and be the judge. [1][2]
That's just the tip of the iceberg. I could rant about Amazon's software for days, but in the end software doesn't necessarily mean they are a bad company. If I order something from amazon I expect to get it quickly and in the case something goes wrong I can talk with someone who will be more than agreeable. That is why they are successful, not because of their software prowess.
[1]: https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp...
[2]: https://www.walmart.com/ip/Thinking-Fast-and-Slow/20530246
The design of a webpage for companies doing 100s of billions in revenue will be rather subjective and hard to change without materially affecting that revenue so I'm not sure how valid that comparison really is, or what it has to do with "better software".
I will say that building the infrastructure to power such an efficient ecommerce empire along with AWS is not trivial and you're likely vastly underestimating the quality of their systems based on what seem to be rather surface-level observations.
I'd also say that if AWS had a 6-7 year head start on the competition, then that was the competition being lazy. It's not as if Microsoft/Google didn't have the ability to deliver a cloud platform back in 2007, and history shows they were delivering cloud products around this time. Microsoft Azure was announced in 2008 and launched in 2010; Google App Engine launched in 2008, storage in 2010, and VMs in 2013.
Walmart can do one thing right, while Amazon has the majority of it right for me. It's going to take a lot to sway me away from Amazon.
Hacker News hates big companies, Amazon being evil is in the zeitgeist, and people are unable to contextualize criticisms properly.
Being a software engineer at Amazon is fine (yeah, yeah, congrats, out of the tens of thousands of engineers you were able to uncover a few horror stories and terrible teams. Shocking) and very lucrative.
[0] https://www.nytimes.com/2015/08/16/technology/inside-amazon-...
[1] http://fortune.com/2016/11/29/amazon-employee-suicide-attemp...
This is sparing the employer at the expense of the employee. Employee's employment status is.....far more sticky.
They prefer calling it 'customer-centric'
> Amazon, Earth’s Most Customer-Centric Company
If they'd like to be actually customer-centric, they can start by implementing a search that doesn't rank counterfeit products with a single 5-star review over real ones with 5000 reviews and an average rating of 4.9.
I feel like Amazon's reputation for being "customer-centric" doesn't actually reflect their current practices, but instead it leans heavily on past reputation (when their competitors were worse) and a convenient return policy that papers over problems.
The technology is not there yet man!
https://chrome.google.com/webstore/detail/sortem-for-amazon/...
That said... Amazon is definitely not human-oriented. Leadership within established business units is brutally efficient, with far too much faith in their metric goals. Ask any engineer about HR's survey tool, I think that's a prime example of cultural decay within Amazon.
Amazon used to be "customer obsessed" with a strong engineering culture... these days the cultural values are "maximize revenue, minimize costs".
One can get this bonus basically everywhere else in the area with similar sized companies. Hell, I got way more than that 8 years ago.
The vesting schedule is diabolical:
> 5% 1st yr, 15% 2nd yr, then 20% every 6 months
coupled with the turnover rate: http://www.slate.com/content/dam/slate/blogs/business_inside...
I can't imagine anyone rational and with reasonable technical skills thinking this is a good enough incentive to join the company.
It's a much more reasonable quarterly vest with a 1-year cliff now.
I've been living in the Seattle area for a really long time and I've heard so many horror stories coming from Amazon that I could fill a book.
Also, I am aware of the 'Amazon is not for everyone' narrative. Yes, I agree, it's not for people who value their work/life balance and expect to be treated as a human at their workplace.
I am also aware of the 'it depends on the team' narrative. That's bullshit. Indeed it does depend on the team but 'generally' (to quote Zuck) it sucks.
The other reason to consider carefully before going there is they sometimes try to scare people by enforcing non-competes. So what are you going to do, deliver papers? Here's a recent article - https://www.geekwire.com/2017/business-personal-amazon-web-s...
edit - here's an example of layoffs in seattle https://www.seattletimes.com/business/amazon/amazon-laying-o...
I order something on Prime, then it doesn't show up when I expect it to, I get no notification of any delays, and then when I log in to see what's going on they have changed the original expected date so I can't even see what I was originally promised unless I took a screen shot.
This has been the case on 2 thirds of my deliveries over the past 3 months. And I'm not even going into the sham that is 3rd party selling.
The scummiest part, though, is that when packages get completely lost, half the time I can't request an automatic refund, I have to work with a customer support rep to get it issued.
Realistically, it should be completely automated. If Amazon knows my package was lost (in my most recent case, it never even shipped!) not issuing the refund automatically is anti-consumer greed.
I'm finding more and more (or maybe it's always been this way?) that the onus for correcting or making sure something is correct, is ALWAYS placed on the last person in the chain.....the individual.
https://www.cbsnews.com/news/60-minutes-life-insurance-inves...
I never hear other people complain about this though. I wonder if it’s not widespread?
> I never hear other people complain about this though. I wonder if it’s not widespread?
I've gotten increases like this on some items, though not as consistently as "every time."
I no longer consider Amazon to be generally price-competitive with other online retailers and big-box retail. I pretty much only shop at Amazon when I have no idea where to buy the item I'm looking for (such as weird informally-imported things).
Ironically, I'm actually starting to use Amazon as an "online showroom" for general searching, but actually make my purchases elsewhere.
The one thing I returned was a breeze.
The reason for my comment was that my experience receiving a shiny package doesn't really overlap with what employees are being put through. Both reflect poorly on Amazon, the conversation about employees is a valid on it's own as there are avenues with Amazon to already complain about poor delivery and have a recourse.
Amazon's total offer was usually about 100k lower. Sometimes more. Amazon SWEs still earn hundreds of thousands of dollars. So being treated poorly and paid less is relative.
In Amazon's defense, I have friends who enjoy working there. The MBAs especially love it. Again, it's not like anyone is stuck in some Nike sweatshop from 1974.
The best bet for amazon warehouse employees, and delivery drivers, would be to unionise. This would lead to either 1) More investment in robotics, taking away menial jobs 2) Better conditions for shelf-stackers.
Both are good -- as a society we should not be making people work when the work could be done by robots.
I think best solution is universal basic income, but that of course is far from being accepted in USA. But it gives power to people, it make them not being so afraid to lose a job, so employers have to act accordingly.
I have said before here that I cannot imagine universal basic income working in the USA unless American culture changes drastically to favour heavy state subsidy of arts, culture and community centers. In the Nordic countries where a substantial portion of many communities are on the dole, the state generously provides concerts and theatres and social facilities so that those people have something wholesome to do, they don’t just all sit home and drink (some do, of course; you can’t win every time). What would small-town Americans do with their time if they weren’t working?
Of course while people vote against their best interests (the false belief that hard work guarantees success) I'm sure that those with the power will continue to exploit those without.
A culture of makework can be harmful in that it would push some people to do pointless jobs when they might actually do something beneficial for society (but perhaps not profit-generating) if they were given free time.
For example, I am fortunate to work remotely in a job that pays me a lot of money, but I am in a country with low cost of living. That means I only work 2–3 days a week. All the rest of my time I am busy with obsessively editing OpenStreetMap, writing the occasional journal publication in the field I trained in at university, and participating in the local arts scene as an audience or writer. I know that if I got to receive UBI, I would still be doing things with my time that are overall contributing to society. Please don’t make me sit in an elevator all day to press buttons instead.
I would like to think we will. I suspect we'll have people doing 60 hora a week of breaking rocks for no reason other than making those higher up the food chain think they aren't hetting a free ride.
It's the Bell Riots and Sanctuary Districts I'm worried about.
Which is why I suspect when it comes to Star Trek's future, we'll get to the dystopia, but not the utopia.
Come on, that's so misleading. Offers from the big tech companies come in 4 year bundles. There's no way your offer was $100k per year lower unless you didn't get leveled the same at Amazon as you did Google.
I got an offer from Google in Mountain View and despite being CONSIDERABLY higher, the COL difference made Amazon's pay higher. And that assumed stock prices remained the same. They've doubled.
Which just benefits the company even further?
Edit: if you downvote please reply. How will I correct my stance if I get no feedback? I'm not sure why I'm getting down voted.
Edit: Thanks for the comments. I did assume this meant Amazon stock. Didn't think my comment sounded so combative until I was told.
If I understand your meaning and if your post's "confrontational" mood is/was the issue, you might have cast your post declaratively instead of interrogatively.
For example,
> Using compensation to buy stocks would benefit the company even further even though the company may unfairly exploit its employees. This would run counter to the employee's own interests.
Or something along those lines.
Recasting questions as statements sometimes reduces the rhetorical signals which can be interpreted confrontation.
EDIT: Remove double quotes; add emphasis. Clarify last sentence. Use past perfect in first sentence. Recast second sentence.
If you work for Amazon as a developer make this issue known. Few people have as much power to impact the company as a group of developers - we all know what a pain in the ass it is to hire.
I'd never work at Amazon knowing how it treats its workers. Given the market we're in I don't get why others would - if you work for Amazon you should be able to jump ship for another good company.
The argument is that they have a demanding work culture which people want to leave after a year or two, but are then incentivized to stay to earn out the bulk of their grant, or alternatively that they promise huge grants knowing that many people will not get to the point where they are collecting the bulk of it.
[0] https://www.quora.com/Amazon-offers-a-RSU-vesting-schedule-o...
But I do wonder how insightful, clever or useful those methods are when towards the edges of his empire people work in constant fear and pee in bottles to survive.
The ever-increasing home price in the Seattle area seems to indicate it isn't bad enough to stop them from working there.
Graphs for this are shown here: https://www.recode.net/2018/2/1/16961598/amazon-jeff-bezos-r...
This is also in the article:
The e-commerce giant posted a record profit of $1.9 billion during the last three months of 2017, marking the 11th straight quarter of positive net income for Jeff Bezos’s company.
About $789 million of that can be attributed to a tax benefit resulting from President Trump’s tax plan. But even without the benefit, the profit number would have been the largest in the company’s history.
https://www.nerdwallet.com/cost-of-living-calculator/compare...
And depending on how you break this list down (Exclude Bermuda from North American cities,bundle Bellevue/Seattle, Brooklyn NYC) it's in the top 10
https://www.numbeo.com/cost-of-living/region_rankings.jsp?ti...
They don't make any money on distributing products.
It's really sad, regardless.