Amazon Termination Policy In 2024: What Employees Need To Know
With over 1.6 million employees globally, Amazon has developed stringent termination policies to manage its massive workforce. However, Amazon‘s high turnover and "hire to fire" reputation raise questions about what workers can expect in 2024. Here‘s an in-depth look at Amazon‘s termination policies and what employees need to know.
How Common Are Terminations at Amazon?
Amazon‘s turnover rates are eye-opening – even compared to other retail employers. For example:
- Amazon‘s turnover rate was 159% in 2021, meaning they had to replace their entire workforce one and a half times over.
- By contrast, Walmart, the largest private employer in the US, had a 37% turnover rate in 2021.
| Company | 2021 Turnover Rate |
|---|---|
| Amazon | 159% |
| Walmart | 37% |
| Macy‘s | 38% |
With terminations factoring heavily into those turnover figures, it‘s clear Amazon lets go of employees more readily than other major chains.
Amazon‘s Point System
The engine behind many Amazon terminations is its notorious point-based disciplinary system. Employees accumulate points for:
- Tardiness
- Missing work
- Underperformance
- Policy violations
Amazon does not publish a standard threshold for termination. However, based on employee reports, accruing 6 points often results in firing.
Some warehouses may allow employees to accrue up to 20 points before being terminated. However, most employees never get close to that threshold before being let go.
In 2024, I expect Amazon‘s points-based system to remain largely intact. However, public scrutiny could pressure Amazon to be more transparent about its termination criteria.
Does Amazon Have Any Grounds to Improve Its Policies?
While Amazon touts its system as an objective measure of employee conduct, critics allege the point system enables retaliatory and discriminatory firings.
Some weaknesses in Amazon‘s policies that warrant re-thinking:
- Point thresholds varying arbitrarily across different facilities
- Lack of transparency and due process around terminations
- Pressure to meet unrealistic productivity quotas
Amazon could build more goodwill through policies like:
- Clearly publishing point thresholds for termination
- Providing peer reviews of potential terminations
- Ensuring productivity quotas account for worker fatigue and health
Will Amazon Soften Its Stance in 2024?
Given its obsession with efficiency and scale, I think Amazon will resist major reforms to its termination policies in 2024.
However, if macroeconomic conditions significantly slow Amazon‘s growth, the company may look for ways to retain employees longer to reduce turnover costs.
One area where Amazon may improve is offering simple job-retraining programs for underperforming employees rather than swiftly terminating them. This could simultaneously improve retention and productivity.
The Bottom Line
Amazon‘s termination policies are part and parcel of its hard-driving workplace culture. With terminations likely remaining common in 2024, prospective Amazon workers should weigh the risks before signing on.
For current employees, understanding Amazon‘s system and seeking support if you feel unfairly targeted are essential to self-advocacy in this environment.
