On Working in Jeff Bezos' Chocolate Factory
In November, I started working nights at an Amazon fulfillment center. One of my co-workers, a new friend of considerable intelligence and imagination, described it as working as an Oompa Loompa in Willie Wonka's chocolate factory. I think the comparison is as close to accurate as I can imagine. Working in an Amazon fulfillment center is a bit surreal.
The employment application process It starts with the employment process. Late one Friday night in mid-October, looking at my dwindling checking accounts, I decided I had to do something different. I'll spare you all the depressing details (low inventory and the changing nature of the residential real estate business, family problems, Covid and Covid hysteria, the complete collapse of office and retail commercial real estate, etc). So just for kicks I went to the Amazon jobs website. Sure enough, they were hiring for night shift warehouse associates. What the heck? I clicked apply.
After entering your standard basic information, but interestingly not your employment history, the website application process directs you to a sort of online test. Ostensibly it's designed to test your ability to pay attention and follow directions. But I think it is really there just to weed out the complete idiots.
If you pass, they give you a job. In fact, I received a contingent job offer that very Friday night, just after midnight. Contingent on what? Not a review of your resume or an interview. Oh no. Contingent on only two things: Passing a drug screening and a criminal background check. That's it. No resume, no interview, no references.
A few days later I went for the drug screen, and a few days after that, I had a formal job offer and a start date.
I started working at Amazon on November 1st.
I started with about a hundred other people. I asked the trainer how often they bring in this many people? She said: Three nights a week.
Immediately, I knew turnover is extremely high. At that point, I could only wonder why. But at least it somewhat explained the employment process. Why bother with all the standard, time-consuming and expensive processes, when you're just going to have to replace them quickly anyway. This seems to be an operating decision that they have made. It did make me worry that the company might view the workers as disposable. We'll come back to this.
The Amazon magic The first thing you notice upon entering the building is the sound. It is loud. It is a very large building with conveyors as far as the eye can see. The conveyors move very fast and make lots of noise.
But let's stop here and ask the question: How would a non-Amazon retailer handle mail-order or internet business. Let's use the most obvious possible challenger, Walmart. Let me first say, I have no idea how Walmart handles its internet business. This need not be Walmart. It could be Target or Land's End or LL Bean or Bed Bath & Beyond. Here is what I imagine.
Picture their warehouse. We find shelves and shelves of product inventory. Someone gets an order and perhaps takes a cart around and fills the order from the various shelves. They bring the product(s) to a packaging area. Put it in a box. Label it. Take it to a shipping area. And finally load it on the waiting UPS truck. Right? Well something like that anyway.
Amazon does not do it this way.
The main advantage that Amazon has is they never had a legacy retail (brick-and-mortar) business to maintain. So they never had to try and fit an internet logistics operation around a brick-and-mortar retail business. They could envision and work to build a pure internet logistics operation from scratch. And of course, that is what they did.
Yes, I realize they are adding retail stores now. But my guess is they are doing the opposite from just about every other retailer. Instead of fitting an internet business around a brick-and-mortar operation, they are fitting a brick-and-mortar business around an internet logistics operation. See the difference?
While this sounds very simple, I assure you it is a tremendous competitive advantage. While Walmart can easily compete with Amazon on product price, they cannot begin to compete with Amazon on product handling, movement, and tracking, internally plus shipping and delivery, in terms of both cost and speed. I really don't think anyone can.
At Amazon the staff does not go to the inventory. The inventory comes to the staff.
Stop and think about that.
Imagine how that might work.
The conveyors take up as much room as the warehouse. The whole building is designed to not only store product (warehousing), but also to move product. From receiving to storage to shipping box. As efficiently as possible. While Amazon is known as a technology company, I assure you it is a very sophisticated and elaborate conveyor system which makes the magic happen. Any conventional warehouse would have to be gutted and rebuilt to accommodate this level of conveyor-ship (to coin a term).
Their true competitive advantage is that they have combined their elaborate conveyor system with advanced technology to operate it. The system can deliver multiple products, from various storage locations, to a single location, far from the actual warehousing area, at the same time, ready for boxing. That is almost magical.
So as not to breach any confidentiality agreement that I may or may not have signed, I am going to stop here with the how. I really don't know if I signed such a document, so I am going to assume that I did. But I think you get the picture. Or at least enough of the picture.
Amazon's working environment It is not that it is fully automated. There are lots of people involved. For example, the actual box packing is done by staff. But the conveyors and technology allow for a very high production rate per staff member. The packing staff stand in one location and product comes to them. Box after box.
It is not a fun job. Packing boxes. But it is amazing when you really think about it.
Then the box goes on a different conveyor off to some labeling machine and on to shipping.
Anyway, that's where most people start working at Amazon. Packing boxes.
I say it is not fun. But it is far from the worst job I ever had. It is not mindless, as every order is different, requiring the packer to pay attention. I guess the worst part of it is that you have to stand for ten to twelve hours. Packing boxes.
Which brings us to another decision that Amazon seems to have made. I don't think one could efficiently pack a box sitting in a chair or on a stool. I think to be efficient, you really do need to stand to do it.
But outside of the break rooms, there is not a chair or a stool in the building. Amazon seems to have made the decision that they expect all of their people (staff and managers alike) to stand the entire time they are working. No doubt they believe that this increases overall productivity. And maybe it does.
I said I would come back to whether the company views its workers as disposable. This standing business is only the start of it. The building is completely, and unnecessarily, windowless. I don't understand that. I don't think anyone could seriously make the argument that natural light is a bad thing. The company does not allow ear pods. Staff members can only listen to the loud and surely harmful operating environment or use earplugs. Those are the only options.
Everything is measured and watched. If you pack boxes, they are counting the number of items you pack. So you better stick to your work. This seems to be the source of most online complaints about the company. Everything is measured and there are cameras everywhere. You are always being watched. But I think the complaints are really unfair. Amazon is paying you to pack boxes. Just because any other firm might not have the ability to track how productive you are does not mean that Amazon should not as well.
And further, the company is not at all outrageous about it. There was this one lady who started right about the time I did. She was terrible at it. For weeks. She just could not seem to get the knack of it. I really worried that they would fire her. But she was trying and I think the managers realized that. She is still there. She may never be the fastest packer, but she was given time to become adequate.
So yes, turnover is high. But just like any firm, Amazon seems to prefer retention. What I understand less well is why they don't do more to improve the working environment for the staff. I think this would help tremendously with morale and retention.
Little things. For example, it's January. Amazon provides no place to put your coat. I really think they prefer you to simply not wear a coat into the building. As inconceivable as this is, it is the only explanation I can fathom. I mean on the very first night I started, the operations manager said: Bring as little with you as possible. But no coat seems a bit extreme. I mean, it is cold and the parking lot is the size of a sports arena's.
Break room food. From machines, it is prepackaged, terrible, and expensive. Why? In order to help retain staff, it should be good (perhaps even fresh) and company-subsidized. I suppose the company really wants you to bring your own. And many people do. But to my mind, it would help with the expense of turnover if they'd provide better and cheaper choices.
Speaking of the break rooms, the company has installed these plastic pods around little individual (single-person) tables. So staff members can each sit alone in their pod during their breaks and not catch the covid from their neighbors. It is one of the most depressing things I've ever seen.
A tyranny of the trivial and the pointless But if one staff member sticks his head around the pod to speak with a fellow staff member? Well, there is someone from the Human Resources Department on hand to put a stop to such a grave breach of protocol. Seriously.
In fact, I have never seen a company where HR has been given such an outsized role. I guess it might be fine if they seemed to understand what goes on in the building. But it is like they work in a completely different universe.
I'll give you an example. In their quest to make everyone safer in this age of Covid, they have mapped out how they expect staff to move around the building. Posting maps and arrows and roping pathways and everything. Needless to say, they want staff members to walk long, unnecessary distances (within short break periods and in a company that constantly measures staff productivity), supposedly to maintain social distancing and avoid close contact with other staff members. Which, no matter what they do, is not at all possible given the size of the staff. But nonetheless, HR has to assert itself. I mean, they will even get out on the floor with a bullhorn and shout that you cannot go this way or that. Yes really.
In any case, in the building, there are these overhead walkways. Large gangways. And instead of following the HR maps and arrows, staff members just go up and over to get to where they want to be. Here is the point: The HR department seems to be absolutely unaware that these walkways exist. But of course that is impossible. They know they are there and that employees are using them. And I think certainly that they know that employees know that they know. But by ignoring them, they keep up the pretense that they are actually doing something productive. It's Covid theater.
So I guess it will be me who points out what everyone already knows: The emperor has no clothes.
If I had to label the Amazon Human Resources Department I would call them: The Keystone Stasi (although I realize one might have to be a certain age to appreciate either reference). And their apparent job description: Lower morale and increase turnover. But I guess that provides them with an extra bit of job security in terms of recruitment and hiring.
Given the large staff, people are on top of each other. If you were serious about limiting contact, you'd have to cut the staff in half. And that cannot happen for operations to continue. But HR has to put on a show and that is what they do. And that is all that it is...a show.
Instead, they should be focusing on things that actually make sense. I've never seen anyone actually cleaning those break room plastic pods. In fact, regardless of what they proclaim, cleaning in the entire building seems incredibly limited. Even by pre-Covid standards.
The company installed plastic barriers between packing stations. Again, I have never seen them cleaned and just by looking at them, it's obvious that they've never been cleaned. They are filthy and literally worse than nothing. Seriously: No barriers would be a vast improvement over filthy barriers. As currently configured, the staff must pass through multiple filthy barriers multiple times during any given shift. Again, it's a show. The entire packing area is never ever properly cleaned, much less disinfected.
I think it is worth noting that managerial workstations are not shrouded in plastic. And the managers work closer together than the packers. Simply because of the workspace needed to do their jobs, the packers are roughly six feet apart anyway. So I am not sure what the goal is here, but it is surely not health safety.
Here's an idea: Instead of paying people to walk around with bullhorns and installing useless plastic, how about we invest in some actual cleaning and disinfecting?
The whole thing is a sham.
After reading this post, a friend points out that companies and governments believe they have to do something. Anything...other than nothing. And they have to be seen to do something or risk bad optics among the staff or the public. It makes no difference whatsoever if what they do is effective. I guess he is correct.
Staff Staying, briefly, with the Human Resources Department. Let me pose a question: If you have a policy to not check references of incoming employees, what type of people might be attracted to such an employer? I really think the question answers itself.
The vast majority of people I have met working at Amazon are absolutely wonderful. And as you might imagine, you meet all types. I have even met a couple of other real estate brokers. In 2020, of course I have. But I have met a few people, who in my judgment, should not be working there. In fact, they probably should not be working anywhere. Abrasive is the word that comes to mind, but I've probably not met the worst of them.
No doubt a simple reference check would have brought this to light. And I get it, the company has done its cost-benefit analysis and decided to save the time and money, and weed these people out later. Which becomes necessary because these employees are unlikely to quit voluntarily — They are basically unemployable elsewhere and my guess is they know it.
So I am not sure that this is the right decision for the company. People like this can do incredible damage. And tolerating people like this, for any necessary period of time for the issues to come to light on their own, and then to the attention of management, and then the time necessary to get rid of them, really sends the wrong message to the staff that you wish to retain.
There is a saying that comes to mind: Nothing will kill a great employee faster than watching you tolerate a bad one (Perry Belcher). Seems spot on to me.
Management I have heard of managers with a staff of six or eight, but I have never heard of a staff member with six direct managers. Yet, I have six bosses. I know that some of them report to others; so yes, there is a managerial hierarchy. But the fact is, at any point, I am reporting to six people. With that many managers, it's impossible for them to all be on the same page all the time. For a staff member, this creates a bit of chaos in terms of assignments and responsibilities and expectations. And they just do not seem to recognize this. It is a bit odd.
To be clear, that is six managers for just over a hundred people in my department. Again, I find it strange, but they all seem busy. In fact, the whole building is teeming with managers who all seem terribly terribly busy. I am sure they are, but I have absolutely no idea what they all do with themselves. For a company that stresses productivity and efficiency, this just does not make much sense to me.
Now I have not worked for someone else in roughly thirty years. I became an entrepreneur to get away from the favoritism and inane policies found in almost all large organizations. Amazon is no exception. Like I said, most everyone starts packing boxes, and it's not the greatest job in the world. It is certainly not the best job in the building. And the surest way to get moved from packing boxes into another role is to be an attractive female. Oh, did I not mention? All of our managers are men.
Other commenters have pointed out that if you excel at packing boxes (are fast at it), the managers have an incentive to leave you in that role. I have also noticed this — Heck, one of my managers admitted this to me. The fastest packer in our building is an attractive woman. The takeaway: To get moved out of packing, be an attractive woman who packs at an average to slightly above average rate, but not so high that management views you as too valuable to move.
As for our fastest packer, she and I have become friendly, if not exactly friends. She seems convinced that if she does a great job, the best in the building, that the managers will move her or promote her or something. Because that would make sense. And she strikes me as someone who is going to do her best regardless. It's who she is. But she is growing frustrated and restless with her lack of progress. Sadly, I'm just not sure she has the right strategy.
I am am not totally unsupportive of our managers. By and large, all of them have treated me fairly and have been supportive of me. And I can see that they treat the other staff members fairly as well. There are a couple of them, including my de facto direct supervisor, who were promoted out of packing. And without hesitation, I would say they deserved it. Nevertheless, in my brief tenure it has become patently obvious who routinely gets moved out of packing into other roles. This is worth noting when you understand how few opportunities there are for actual promotion. Staff turnover is high; there are lots of opportunities for movement. But actual promotion opportunities are much less frequent. And for promotion, exposure to multiple roles is important.
This state of affairs is not at all surprising to me. I knew before I applied for this job, or any job, that this is the way it works. Everywhere. The problem with large organizations is that the managerial classes are not owners, but they certainly are self-serving. So their interests and the company's interests are not perfectly aligned. Even if you give managers incentives based on company goals, say for example production goals, managers will still serve their own interests first.
One might expect, or hope, that Amazon is different. I assure you, it is not.
Jeff Bezos is famous for his long term vision. He delayed corporate profits for years, instead investing in Amazon's infrastructure and driving down costs. If only he could instill this level of managerial integrity in his line managers.
Yes, this post might cost me my job. I hope not. It has taken me a couple of months to decide whether I like working there. And I mostly do...I guess. But for all of the above reasons, my appreciation is waning. It really depends on the day.
But hey, it's a chocolate factory — Anything is possible.
Oompa Loompa doompedee doo...
We've got a package coming for you.
Oompa Loompa doompedee dee...
If you are Prime we will ship it for free!