Amazon’s Use Of Algorithms To Increase Employees’ Productivity: Fair Or Not? (2024)

  • Last updated September 17, 2021
  • In

Amazon deploys data, surveillance and algorithms to accelerate the productivity of its warehouse workers. But how ethical is it?

  • Published on September 19, 2021
  • by Debolina Biswas

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Ever wonder how Jeff Bezos managed to build a $1.56 trillion worth (as of July 2021) empire — the world’s largest retailer, and become the richest man in the world? While the reasons may be many, automating its management system has to play an interesting role.

Unlike traditional offices where managers were always barking behind the backs of inefficient employees, Amazon has developed a software that tracks every move of its workers in the fulfilment centre — writes Christopher Mims for The Wall Street Journal after interviewing Amazon workers.

An era of ‘Bezosism’

This isn’t the first time that a multinational company, and a billionaire, harnessed technology to boost the productivity of its employees and build an empire of a business. Henry Ford — the first billionaire in the history of billionaires, introduced the system of using surveillance, measurement, targets, psychological tricks and incentives to speed up work and productivity of its employees.

Mims has coined Bezos’ practice of supercharging the management system as ‘Bezosism.’ Amazon evaluates its workers’ performance using the metric ‘rate.’ This usage of technology to manage and increase the performance of its workforce, automate its systems and further innovate based on the availability of data, is what makes Amazon the world’s largest retailer.

How the tech works

At its fulfilment centres, Amazon measures its employees’ pick or stow rate at a robot-fed pick and stow station. The rate at which an employee or worker in its warehouse must complete a task (stacking items on shelves, taking items off shelves, putting items into boxes, etc.) is calculated based on every worker’s overall and aggregated performance in that particular warehouse facility.

Employees get a 30-minute lunch break and another 30-minute break built into their normal schedule to get water, use the restroom and talk to managers in the 10-hour shift. According to the Wall Street Journal’s investigation, associates are not allowed to sit down on their jobs besides lunchtime and the extra 30-minutes break.

This competitive measure of one’s performance can be both fruitful and dangerous.

Every time a worker misses the target rate, the algorithm triggers a warning. If one gets too many warnings, their job is at stake. These warnings can have severe psychological consequences on the workers, pushing them to work harder, often exceeding their physical and mental limits.

Fruitful or dangerous?

Amazon argues that incorporating algorithms in measuring one’s productivity ensures that no employee is pushed beyond human limits to achieve unattainable targets.

In April, in a letter to its shareholders, Bezos wrote, “ If you read some of the news reports, you might think we have no care for employees…our employees are sometimes accused of being desperate souls and treated as robots…We don’t set unreasonable performance goals.”

Bezos, in the letter, mentions that Amazon terminates only 2.6 per cent of its employees due to their inability to meet targets. While this may seem low, the bigger picture tells a different story. Today, Amazon directly employs more than 1.3 million people across the globe. That makes more than 4,000 employees being fired every year.

Earlier this month, The Verge reported that California had passed the AB 701 bill challenging performance goals laid down by companies of the likes of Amazon on its warehouse workers. The bill was reported keeping in line with the number of at-work injuries reported by Amazon warehouse workers due to the implementation of algorithms. Bezos himself suggests that 40 per cent of the injuries recorded by Amazon workers have to do with musculoskeletal disorders (injuries of the muscle, nerves and joints) usually caused by repetitive movements at work.

A look at the broader picture, thus, reveals that Amazon’s use of data, surveillance and algorithms to accelerate its employees’ performance has more grave repercussions than good.

Debolina Biswas

After diving deep into the Indian startup ecosystem, Debolina is now a Technology Journalist. When not writing, she is found reading or playing with paint brushes and palette knives. She can be reached at debolina.biswas@analyticsindiamag.com

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Amazon’s Use Of Algorithms To Increase Employees’ Productivity: Fair Or Not? (2024)

FAQs

Amazon’s Use Of Algorithms To Increase Employees’ Productivity: Fair Or Not? ›

A look at the broader picture, thus, reveals that Amazon's use of data, surveillance and algorithms to accelerate its employees' performance has more grave repercussions than good.

How does Amazon improve productivity? ›

Amazon Customer Fulfillment Reduced Downtime Using AWS

Amazon Customer Fulfillment reduced unplanned equipment downtime hours by 69 percent using Amazon Monitron. With predictive maintenance, the company can better fulfill customer orders on time.

Does Amazon monitor employee productivity? ›

It took issue with elements of the shipping giant's practice of having employees document performance via scanner, including: The system potentially requiring employees to justify every break or interruption; Its excessive nature for measuring productivity; and. Amazon's excessive storage of the data it captured.

What does Amazon do to motivate their employees? ›

Once an employee understands the visibility of their future pay today, that becomes a motivating factor. Employees feel motivated to run towards that future and work hard for it. Amazon employs other methods of motivating their employees such as learning, growth opportunities, and work environment.

How does Amazon incentivize employees? ›

Our suite of benefits include health care coverage, paid parental leave, ways to save for the future, paid college tuition, and other resources to improve health and well-being. We invest in the success of our employees by helping them grow their skills and careers.

How does Amazon use technology to increase efficiency? ›

The utilization of Big Data and artificial intelligence also plays a crucial role in optimizing Amazon's inventory management and supply chain operations. By effectively capturing data throughout their supply chain, they achieve greater efficiency.

What is the Amazon worker controversy? ›

OSHA found that Amazon warehouse workers were subject to a significant risk of low back injuries and musculoskeletal disorders due to the high frequency at which workers were required to lift packages and heavy items, work long hours, and often awkwardly bend and twist to maneuver products.

Is Amazon ethical for employees? ›

We promote safe, inclusive, and respectful workplaces with our third-party suppliers and service providers. We seek suppliers committed to these same principles. Amazon's Supply Chain Standards set forth requirements governing labor standards and working conditions.

Does Amazon treat their employees poorly? ›

More than half of workers said they're burned out from their work at the company, and that response rate intensified the longer the employee had worked at Amazon. The data adds to a drumbeat of scrutiny around Amazon's workplace safety and treatment of warehouse employees.

Does Amazon overwork its employees? ›

"The survey data indicate that how Amazon designs its processes — including extensive monitoring and the rapid pace of work — are contributing to a considerable physical and mental health toll, including injuries, burnout and exhaustion," Beth Gutelius, research director at CUED and a co-author of the study, said in a ...

How does Amazon promote employees? ›

Amazon wants to promote engineers who consistently demonstrate they're at the next level. This helps to de-risk promoting someone before they are ready. Amazon's public job levels come with different expectations, so delaying promotion until meets the level protects them from being judged too soon.

Why is Amazon a good company for employees? ›

It all starts with our commitment to constantly evolve and meet the needs of our associates. That's why we have jobs that fit any lifestyle, state-of-the-art workplaces, teams that support and listen to our associates, and company-driven initiatives and benefits to help support your goals.

How does Jeff Bezos motivate his employees? ›

By focusing on what customers want, splitting his workers into small groups, and encouraging them to compete in a friendly way, he motivates them to do their best. Bezos's mix of high standards and creative leadership has turned Amazon into a huge online store and tech company.

Does Amazon use gamification? ›

Gamification uses elements of gaming to engage people in a non-gaming activity. In 2019, Amazon introduced gamification in the form of workstation games to try to incentivize employees to improve performance and efficiency.

Does Amazon value their employees? ›

We care for and value our employees, maintain a culture of direct dialogue and aim to build a welcoming, diverse and inclusive culture.

What is Amazon doing to retain their high potential employees? ›

Amazon is investing more than $1.2 billion to provide free skills training opportunities to more than 300,000 U.S. employees by 2025, helping them further their careers in high-paying, in-demand roles.

How does Amazon improve efficiency? ›

One technology solution used by Amazon is robotics. Robots are used to automate tasks such as picking and packing, reducing the time and effort required by human workers. This improves efficiency and accuracy in order fulfillment. Another technology solution used by Amazon is artificial intelligence (AI).

How has Amazon increased business efficiency? ›

Furthermore, Amazon has created a cloud-based platform, Amazon Web Services (AWS), that enables it to collect, store, and analyze large amounts of data from its operations and customers. The data collected is used to improve supply chain efficiency, reduce costs, and increase customer satisfaction.

What have Amazon done to improve working conditions? ›

Amazon has devoted considerable effort and resources to improve ergonomic conditions and reduce MSDs. We employ an Ergonomics Engineering team that includes certified professional ergonomists who make use of industry-leading digital human modeling software to assess ergonomic risk.

What are the advantages of working for Amazon? ›

In addition to fair pay, employees have opportunities to own Amazon stock, participate in 401(k) plans with company match, and enroll in paid life and accident insurance.

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