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Amazon - Project - Edited (1) RVSNNN

This document provides an introduction to a study on employee retention at Amazon warehouses in the UK. It discusses how retaining employees is becoming a major challenge for organizations. The background explains that Amazon has extremely high turnover rates, with less than a third of new hires staying past 90 days. High turnover costs Amazon $8 billion annually. The research aims to identify factors contributing to low retention at Amazon warehouses and analyze the impacts of low retention. It will also compare Amazon's retention policies to those of Boots warehouses. The objectives are to evaluate factors influencing retention, assess the impact on organizational performance, and compare retention policies between the two companies.

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0% found this document useful (0 votes)
252 views31 pages

Amazon - Project - Edited (1) RVSNNN

This document provides an introduction to a study on employee retention at Amazon warehouses in the UK. It discusses how retaining employees is becoming a major challenge for organizations. The background explains that Amazon has extremely high turnover rates, with less than a third of new hires staying past 90 days. High turnover costs Amazon $8 billion annually. The research aims to identify factors contributing to low retention at Amazon warehouses and analyze the impacts of low retention. It will also compare Amazon's retention policies to those of Boots warehouses. The objectives are to evaluate factors influencing retention, assess the impact on organizational performance, and compare retention policies between the two companies.

Uploaded by

Bancy k.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1

Amazon project

Chapter one: introduction

Introduction
An assessment of employee retention in organizations is presented in this part; it gives an

idea of how organizations struggle in retaining their employees in respect to the evolving world

of business, the challenges associated with retaining employees are rapidly becoming the

essential challenges associated with organizational leadership (Daft & Marcic, 2022). Businesses

that modify their organizational behavior to reflect the realities of the modern workplace, in

which success and longevity are dependent on innovation, creativity, and adaptability, will be

successful in the future (Hickman & Silva, 2018). The dynamics of the workplace will need to

represent a diverse population made up of people whose motives, attitudes, and value systems

are very different from those of the past and from one another.

This tendency is especially common in light of the current volatility of the economy and

in the wake of business downsizings, which cause the effects of losing important personnel to

multiply exponentially. An impending shortage of highly trained workers with the necessary

knowledge and aptitude to execute at high levels is predicted by critical examination of

workforce trends, Meaning that firms who don't keep their high performers will have a

workforce that's understaffed and less skilled, which will hurt their capacity to compete in the

long run (Agoi, 2017). Managers will also have a tough time maintaining and motivating their

personnel in a setting with more uncertainty.


2

Background to the study


The ability of a business to retain personnel is referred to as employee retention

(Kamalaveni et al., 2019). Reducing employee turnover, or the number of workers who quit their

jobs either freely or involuntarily during a specific period of time will increase retention rates.

Due to a knowledge deficit, the researcher chose to concentrate on the issue of poor employee

retention in organizations and decided to use amazon as the case study for the project. Despite

the large amount of research conducted on employee turnover, the primary objective of which is

to uncover the causes that lead people to leave their jobs, very little is known about the variables

that compel individuals to remain in their positions.

Amazon is currently the second largest private employer in the United States, and it is

quite probable that it could soon overtake all of its rivals to become the largest private employer

in the country (Newman, 2018). However, a recent investigation that was carried out by the New

York Times raises serious questions about the management of the company's warehouse workers

(Vallas et al., 2022). The investigation also reveals an astonishingly high turnover rate among the

company's hourly associates — approximately 150% a year, even before the pandemic, which

indicates that the firm was losing approximately 3% of its warehouse workers each week

(Altenried, 2022). As reported in the news, the turnover rate at the corporation is approaching

dangerously near a crisis level, as a record 50 vice presidents left the company in the previous

year (Struckell et al., 2022).

Although Amazon isn't known for having happy employees, it appears that the company's

turnover rates may be higher than previously believed. According to a recent study, less than

one-third of new recruits stay with the organization for more than 90 days. Amazon's high

attrition rates are significant, costing the company about $8 billion annually, or close to a quarter

of its projected net profit for 2021 (Li et al.,2022).


3

Employees seem to be leaving the company primarily due to poor growth and development

opportunities. However, due to the impending economic downturn, Amazon has also stopped

hiring new employees and has made sizable layoffs.

According to research, attrition rates were high at all levels of the organization, from

entry-level employees up to executives and vice presidents. The company's lowest turnover rate

for one of its ten tiers was approximately 70%, which is still much higher than the 47.2%

national average (Luong, 2022). Recent research by the Wall Street Journal and National

Employment Law Project found that lower-level employees, such as manufacturing workers,

have a far greater turnover rate than other divisions of the business (Al Shraah et al., 2022). In

reality, their research showed that the turnover rate for warehouse employees was close to 100%,

which was double the industry standard.

The success and performance of a business can be significantly impacted by increasing

staff retention. Employee retention initiatives, according to the Society for Human Resource

Management (SHRM),) are crucial for luring in and keeping qualified workers as well as

lowering turnover and its related costs (Cloutier, 2015). Retention is beneficial for an

organization's overall performance, productivity, and profitability because it is more cost-

effective to keep competent and highly skilled people than to train and onboard new

hires (Cloutier, 2015). According to the results of a survey conducted by SHRM and Globoforce

titled "Using Recognition and Other Workplace Programs to Engage Employees," nearly half

(47%) of human resource professionals cite retention and attrition as their primary concern with

workforce management (Tran & Smith, 2021).

A high retention rate is possible for a staff that has high levels of engagement is

effectively performing their jobs, and offers superior service to customers. Because workers who
4

care more about the mission of a firm will feel more of a part of their obligations and be more

engaged in their work, involvement is critical (Polman & Bhattacharya, 2016). Strong retention

rates translate into reduced turnover rates, which is crucial because the cost of turnover can

seriously harm a company's bottom line. In order to reduce the costs that come with turnover,

businesses often want to minimize them. According to reports, replacing an employee costs

businesses between six and nine months of their employee's income. But organizations want

strong retention rates for more reasons than just the high financial cost of turnover (Al Mamun &

Hasan, 2017).

In addition to the expense, managers must spend time and effort dealing with attrition,

which draws them away from other responsibilities. When there is less turnover, managers put

less time and effort into the hiring process. Employee morale can be harmed by high turnover,

and burnout might result. Due to the additional demands and responsibilities they must shoulder

when roles are unfilled; employees may get overworked. Even recently hired staff members may

experience low morale as they try to pick up their new responsibilities fast.

Research aims
Research aims are an essential component of a dissertation because they help to narrow

the scope of the study, making it more manageable and easier to conduct. By clearly defining the

research aims, the researcher can focus on the specific questions they want to answer and avoid

getting sidetracked or overwhelmed. The aim of this research is to evaluate factors contributing

to poor employee retention.

Research questions

Research questions are an essential component of any research project as they provide a

clear framework for the study and guide the research process. The research questions ensure that

the study is focused and purposeful by defining specific questions that the research aims to
5

answer. This provides clarity and direction for the research and helps to ensure that the research

does not deviate from the main research questions. The following are the research questions that

the researcher utilized.

 What are some of the potential factors that contribute to low retention rates?

 What are the repercussions of having a poor employee retention rate?

 What can increase the percentage of people who remain in a position?

Research objectives

Research objectives are crucial in any research project as they provide a clear direction,

focus the research process, measure progress and success, and communicate the purpose and

scope of the study. Research objectives define the purpose and scope of the study and guide the

research process by defining specific questions to be addressed. By doing so, research objectives

ensure that the research project is focused, purposeful, and successful in achieving its goals. The

following are the objectives that the researcher focused on;

1. To identify and critically evaluate the factors that contribute to low employee retention in

Amazon warehouses in the UK

2. To analyze and assess the impact of low retention on organizational performance at

Amazon warehouses in the UK.

3. Comparing the retention policies of Boots warehouses to Amazon warehouses in the UK.
6

Research gap
The proposed research has directed attention to the issue of poor employee retention in

organizations. Employee retention is a critical issue for the success of any business. Despite its

outstanding success in the e-commerce and technology industries, Amazon.com Inc. has been

struggling with high employee turnover rates (Kantor et al., 2021). This issue has significant

implications for the company's performance, including decreased productivity, low morale, and

increased costs of recruitment and training.

Understanding the causes of Amazon's low staff retention rates and assessing the steps

the company has put in place to lower turnover rates are crucial for finding a solution to this

problem. In order to evaluate the strategies Amazon has implemented to prepare for high staff

turnover, identify the factors causing low employee retention at the company, evaluate the

impact of low retention on organizational performance, and suggest a strategy to increase staff

retention within the organization are the goals of this study.

This study will be of value in helping organizations in managing these challenges. By

understanding the root causes of high turnover rates, organizations can take measures to address

the issues and improve employee satisfaction, which ultimately leads to higher retention rates (Al

Mamun & Hasan, 2017). The findings will also help in identifying the effectiveness of the

existing strategies and highlight areas that need improvement. Organizations need to

continuously review and improve their retention strategies to ensure that they are effective in

retaining their top talent.

This study will also be of importance in assessing the impact of low retention on

organizations which will enable the organizations to make informed decisions on how to allocate

resources to address the issue and improve their overall performance. Based on the findings of

the research, the proposed strategy should aim to address the root causes of high turnover rates
7

and be tailored to the specific needs of the organization. A well-designed retention strategy can

lead to improved employee satisfaction, productivity, and customer service, which can have a

positive impact on the organization's success.

Summary

In summary, this part provides an introduction to the thesis and concept of poor employee

retention in organizations, and This chapter provides a dependable overview of the subject

matter, which in turn helps to produce the problem statement as well as the research question.

The text discusses the importance of retaining employees in the current economy and the need

for organizations to adapt to the realities of the modern workplace. The researcher focuses on

Amazon as a case study for this research. It is noted that despite being the second largest private

employer in the United States, the company has a high rate of employee turnover, especially

among its hourly associates.

The researcher highlights the findings of a recent investigation that raises serious

questions about the management of the company's warehouse workers.

This chapter emphasizes that increasing staff retention can significantly impact the success and

performance of a business. Employee retention initiatives are crucial for luring and keeping

qualified workers, lowering turnover, and its related costs, which is more cost-effective than

training and onboarding new hires.


8

Chapter 2; literature review

Introduction

This section aims to highlight the literature materials regarding the challenge of poor

employee retention comprehensively. It will enable the researcher to understand and develop a

better conceptual framework for the project. This section will give insights on the rate of

employee retention at amazon and will be in line with the projects research questions, which

include the potential factors that contribute to low retention rates, the consequences of having a

poor employee retention rate and factors that can lead to improved employee retention

Amazon's employee retention rate

According to a leaked Amazon internal research memo from mid-2021 that was reviewed

by Recode, the company may face a labour shortage in its US warehouses by 2024, potentially

putting its service quality, growth plans, and e-commerce dominance at risk (Del Rey, 2022).

The report suggests that increasing warehouse automation and wages are among the six "levers"

Amazon could use to delay the labour crisis by a few years. However, Amazon employees

believe that only significant changes to the company's business practices and employee

management will have a significant impact on the timeline (Del Rey, 2022).

The leaked memo highlights that Amazon's labour crisis is particularly pressing in certain

locations. The company was expected to deplete its entire labour pool in the Phoenix, Arizona,

metro area by the end of 2021 and in the Inland Empire region of California, about 60 miles east

of Los Angeles, by the end of 2022. Amazon determined the available pool of workers based on

factors such as household income and proximity to existing or proposed Amazon facilities, not

including every adult in the United States.


9

This internal report provides a glimpse behind Amazon's facade of one-click online shopping and

same-day Prime delivery, shedding light on the company's staffing challenges. It shows how

much Amazon's commercial success and reputation as a Wall Street favourite depend on its

workforce of more than one million individuals who pick, pack, and ship orders for customers

around the clock (Kantor et al., 2021). The leaked findings serve as a warning for other

employers trying to emulate Amazon's management style, which prioritizes worker productivity

above almost everything else, resulting in a high turnover rate for front-line workers (Del Rey,

2022).

The Amazon Way of management focuses on worker productivity over all other factors.

Previously, Amazon did not consider this churn to be a problem and, at times, even considered it

desirable. According to New York Times reports, Amazon founder and former CEO Jeff Bezos

considered his warehouse workforce to be necessary but replaceable. He was also concerned that

employees who stayed at the company for an extended period of time would become complacent

or, worse, disgruntled (Kantor et al., 2021). However, as the internal report reviewed by Recode

shows, some Amazon employees have concluded that this strategy will not work for much

longer. This is especially true if Amazon's executives truly want to make the company "the best

employer on the planet," as Bezos declared in 2021 (Amazon, 2021).

The fact that some Amazon employees see warehouse work as merely a stopgap on their

way to more desirable positions undoubtedly contributes to the company's high turnover rate.

However, some employees have long complained about the unique stressors that exist in

Amazon's workplace. The rapidity and repetition of the work, as well as the constant

computerized surveillance of workers' every move, are all sources of stress. The report cited a

company survey of 31,000 workers who left Amazon. Working at Amazon, according to some
10

former employees, is worse than working at some of Amazon's major competitors, such as

Walmart or FedEx. According to the survey's findings, respondents who quickly found new jobs

after leaving the tech giant "rated Amazon significantly lower" in terms of how well the work

matched their skills or interests, as well as the job demands, shift length, and shift schedule.

Because Amazon's traditional competitors are increasing their investments in e-commerce

warehouses, the online retailer is no longer the clear-cut best option for people looking for work

in facilities of this type and the starting minimum wage that comes with it. This dynamic is

already present in a number of different regions throughout the country (Nolan, 2022).

Factors that contribute to low retention rates

Employees frequently change jobs within an organization. There are numerous scenarios

that could lead to someone leaving your company. Some of the causes are unavoidable, and as a

result, they are not to be concerned about. Nonetheless, you have a problem on your hands if

employees leave your company because they are dissatisfied with their jobs or if you frequently

have to fire employees who aren't performing well.

Main Causes of Employee Turnover

A high employee turnover rate is costly. It wastes valuable time and money and has the

potential to lower worker morale (Martinelli, 2017). People may believe that your company is a

terrible place to work, which will harm both your reputation and the image of your brand.

Martinelli (2017) urges that a certain level of job turnover is unavoidable. Retirement, moving

away for education, and changing jobs are all examples of unavoidable events. However, if you

want to avoid negative consequences, you must monitor your turnover rate and investigate the

reasons why people leave the company. The primary factors that contribute to high employee

turnover, as well as preventative measures that can be implemented, include the following;
11

Lack of Growth and Progression

When it comes to retaining talented employees, it is crucial to provide them with

opportunities for growth and development. If an employee believes that there is no room for

advancement in their current position, they may look for opportunities with other companies

where they can improve their status and income (Martinelli, 2017).

Being Overworked

During times of economic stress, you may find it necessary to request that your

employees assume additional responsibilities. It is possible that you will need to lay off some

employees and then ask those who remain to make up the difference by working longer hours or

on weekends. However, it is never a good idea to force employees to choose between their

personal and professional lives. As employees become more disillusioned with their jobs, it will

instead increase employee turnover (Edis, 2022).

Lack of Feedback and Recognition

If you avoid providing feedback to your employees, you risk alienating them further.

Avoiding this procedure can be detrimental to the success of your employees, as feedback is the

initial step in ensuring their job success (Flowers & Hughes, 1973). If an employee is struggling,

providing them with honest feedback will help them better manage their workload and refocus

their attention. If you choose to disregard the opportunity for employee input or provide

unhelpful feedback, they will flounder, become disillusioned, struggle, and eventually give up.

Little Opportunity for Decision-Making

micromanagement eliminates the possibility of innovation, which is precisely the

opposite of what you desire (Flowers & Hughes, 1973). Employees who are stifled and

micromanaged are more likely to become resentful of their lack of flexibility, which contributes
12

to high turnover rates. Instead, have faith in your employees' abilities and give them some

latitude in their work, which will undoubtedly increase their level of enthusiasm.

Poor Employee Selection

It can be difficult to find the ideal employee for a company, but it is never beneficial to

try to force a match with an employee who is obviously incompatible with the company's values

and culture. Even if you are in a rush to fill that position, selecting an unsuitable candidate is not

beneficial for you, your organization, or the employee in question (talentintellig, 2021). Nobody

produces their best work when they are unhappy, and it is highly unlikely that an employee who

is not a good cultural fit will enjoy their new position.

Lack of employee purpose:

Workism is the belief that one's job "is not only essential to economic output but also the

essence of one's identity and the raison d'être of one's life." This is especially prevalent among

professionals with college degrees (Thompson, 2019). Consider the fact that "So, what do you

do?" is a common way to start a conversation with new friends during small talk. Therefore, it

should come as no surprise that high achievers place a premium on working for a company and

in a position of which they can be proud.

Though its meaning can be debated, a LinkedIn survey titled "Talent Trends" did find

that companies with meaningful goals had 49% lower employee turnover (Robinson, 2021).

Firms with "purposeful missions" are especially effective at inspiring their workforce to become

living representations of the company's brand. These companies "walk the walk" when it comes

to supporting charitable organizations and giving back to the community, have strong cultures,

and can explain how their product or service contributes to making the world a better place. If a

company's staff is committed to its mission and values, it can retain talented workers even if
13

employee engagement is low. This is because the importance of the work performed by the

company motivates its workers.

Poor compensation

One of the primary motivating factors for people to leave a firm, especially for younger

workers, is their compensation and benefits package: The LinkedIn survey found that money and

benefits are the top two reasons why people change jobs (Blundell et al.,2020). There are a

variety of reasons why offering a higher starting salary improves the likelihood of keeping on a

new hire. A good place to start showing appreciation for your staff's efforts is by paying them

fairly. This also lessens the chances that a competing firm can entice away star employees with

merely financial incentives. Glassdoor (2017)found that the average salary increase for

employees after a job change was 5.2% per year. When a company offers a salary closer to the

top of the pay scale, it makes "headhunting" a more costly endeavour for everyone involved.

How do you guarantee that, depending on the position, the pay is either market rate or

above it? First, it's crucial that yearly salary increases continue. Always remember to check the

market once a year and more frequently for hard-to-fill positions to see what salaries competitors

are offering. Bonuses are frequently awarded to employees based on the successful completion

of a project, and there is a persistent trend toward paying more for in-demand skills (lumen,

2016). Last but not least, it is essential to conduct a racial and gender pay equity analysis and

implement talent management mechanisms that can identify high performers in order to address

and correct pay disparities (Barnard-Bahn, 2020). Each year, PayScale publishes a report entitled

Compensation Best Practices that can be used as a guide.

Poor work/life balance


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Lack of work-life balance has been cited in several studies as one of the top three reasons

for employees to quit their jobs. Companies shouldn't just focus on solving the issue of overwork

but also on achieving the kind of scheduling flexibility that allows each employee to perform at

his or her highest possible level of efficiency (Albright, 2018). Approximately 25% of wage and

salary workers in 2019 had the option to work from home at least part-time, and 57% of workers

had flexible schedules that allowed them to vary the times they started and stopped working

(Pabilonia & Victoria Vernon, 2022). This is great news for people who had to deal with long

and stressful commutes before the WFH trend took off in 2020. When employees work shifts and

cannot choose their own start and end times, it is preferable to provide schedules in advance and

be as flexible with trades as possible.

Boredom:

Members of Generation X are the most likely to leave an organization due to a lack of

challenging work that keeps them awake and engaged in their work, according to the results of a

survey conducted by LinkedIn Talent Trends (Fleming, 2021). Again, a great deal of the blame

lies with the manager. Managers should push their teams to the limit by giving them challenging

tasks and encouraging them to succeed. Insist that your team adopt a "growth mindset," one that

values learning new things and is willing to take calculated risks in pursuit of rewards, and you'll

see your team flourish. An attitude that can accept failure is crucial to this procedure.

Toxic or negative culture:

Data from SHRM indicate that It's estimated that one-fourth of all American workers

experience genuine dread when thinking about having to report to work the next day. Because of

this, they are unable to express their ideas and doubt that their efforts are appreciated. There is a

loss of billions of dollars in revenue that could have been avoided by businesses (Wilkie, 2018).
15

If you think that the company's culture may be to blame for the high turnover rate, you should

look into how often and how openly top executives communicate with their employees. Do

people feel valued, trusted to do their jobs without micromanagement, and free to take time off

they've earned? Do upper-level leaders have faith in their employees to delegate tasks? Is our

culture one that accepts people from all walks of life?

Strategies to Reduce Employee Turnover

In order to reap the financial benefits of a low "employee carousel" turnover rate, it is in

your best interest to do whatever you can to retain your most capable workers. One of the best

ways to ensure your company's continued success is to keep your employees happy and fulfilled

in their work (Blundell et al.,2020).

Invest in your Employees

Your staff members want to feel valued and appreciated by you. Employees are more

likely to remain dedicated to a company if they feel their employer genuinely cares about them

and their professional growth. Spending money on training and education for employees is an

investment in the company's future success. Improving your team's skillsets and enticing fresh

recruits at the same time is entirely possible.

Reward and Compensate your Employees

Employees need to know that their efforts are valued by their employers in order to feel

fulfilled in their roles. Constantly and openly highlight their achievements and express gratitude

for their hard work. Even though it may not seem like much, it is well worth the time and effort

to increase employee loyalty through the awarding of prizes and the celebration of any and all

successes.
16

Even though it's possible that money isn't the primary reason for high employee turnover rates,

it's still important to pay your employee's fair compensation that increases in line with their

professional development (Dewar, 2019). Assuming you've taken these measures, your

employees won't go looking for employment elsewhere.

Perfect your Selection Process

Mastering the art of the interview can be difficult. The following are measures that will ensure

the right candidates are hired,

Define the role

It's important to know what skills and experience the perfect candidate has under their

belt before posting a job opening. Processing applications from people who don't meet the

requirements is a waste of resources. If the job description is well-defined, you'll be able to zero

in on the right candidates while quickly eliminating the unqualified (Caramela, 2018).

Clarify whether the candidate has the desired skills and knowledge.

Have the candidates take part in a role-playing exercise or a practical test to gauge their

level of expertise. Asking them questions about how they would react in various "on-the-job"

situations can also shed light on their thought process (C, 2019).

Ensure that the candidate fits the company culture.

During the interview, it's important to probe further into the candidate's past actions,

values, and perspectives and to gauge how well they click with you as a person. Avoid asking

yes/no questions (also known as "closed questions"). Honest questions help you learn the

applicant's true feelings.

Provide Considerate and Thorough Feedback


17

Giving feedback that is both timely and well-considered is a major factor in ensuring success.

According to Caramela (2018), Workers benefit from feedback because it encourages skill

development, self-evaluation, and the identification of areas for improvement. Failure to provide

feedback to employees can have a negative impact on both the company's growth and the morale

of its workforce, potentially leading to the departure of key employees.

Ensure a Good Work-Life Balance

Maintaining a good sense of balance is crucial. Overworked employees may start to act

negatively as a result of their stress levels (Sanfilippo, 2020). All employees should be strongly

encouraged to take their full lunch break, and their workload should be moderate enough that

employees are not routinely required to work overtime or come in early. Participating in work-

related social outings is important for promoting positivity and a pleasant working atmosphere

among coworkers (Kohll, 2018).

Effects of poor turnover rate

Most recently available data from the Bureau of Labor Statistics indicates a yearly

turnover rate of 43 per cent in warehouses (Bureau of Labor Statistics, 2023). The annual cost

would be at least $365,500 if that many people left a warehouse team of one hundred. Just the

costs that can be reliably estimated are included here, such as Exit interviews, severance pay, and

higher unemployment taxes are examples of the kinds of expenses that can be incurred when an

employee leaves a company.

When calculating the "cost of turnover," the most important costs are completely ignored. These

costs include;

Decrease in warehouse productivity. Oftentimes, it takes new warehouse workers several

months to reach their full productivity. This means that more staff members will have to be hired
18

to keep up with the required daily throughput (Kohll, 2018). In addition, more frequent callouts

correlate with higher warehouse turnover rates. When there are more callouts every day, it

compromises a 3PL's ability to fulfil the orders for that day. Damaged reputation among carriers,

Inadequate distribution centre productivity may delay truck loading. In the event that this does

not occur, carriers may impose detention fees. It is possible that, over time, truck drivers will

develop a negative opinion of the facility and refuse to deliver goods or perform services there.

Unhappy customers. Employees with less experience and temporary workers are more

likely to make mistakes during the unloading, selecting, and packing processes. Your standing

with retailers may take a hit if your OTIF (on-time, in-full) retail distribution percentage drops as

a result of this. Additional costs for customer support and returns processing can add up to $50

per error in business-to-consumer (B2C) fulfilment (Logistics, 2022). There's also the risk of

alienating a customer over this.

Conclusion

Going through the literature review, it is evident that employee retention is among the big

challenges facing employers in this day and age, several factors have been highlighted on how to

improve on the retention rate, the costs of replacing employees can range from 20% to 200% of

the lost worker's salary. Amazon is facing a potential labor shortage in its US warehouses by

2024, putting the company's service quality, growth plans, and e-commerce dominance at risk.

The leaked report also suggests that increasing warehouse automation and wages are among the

six "levers" Amazon could use to delay the labor crisis by a few years, but significant changes to

the company's business practices and employee management may be necessary. The Amazon

Way of management focuses on worker productivity over all other factors, which results in a

high turnover rate for front-line workers


19

Chapter 3; Methodology

Introduction

The research methodology plays a crucial role in guiding the researcher on the specific steps to

be followed in order to collect, process, analyze and select the information obtained from the

research to address the research questions (Sileyew, 2019). It helps the researcher to ensure the

study's reliability and validity by conducting an in-depth analysis using the methodology. The

researcher is able to construct an investigation in a methodical manner and generate findings that

are valid, trustworthy, and relevant to the research objectives thanks to the methodology. In

addition, the methodology will be used to support the research design that has been selected.

This will be accomplished by demonstrating that the methodologies and sample strategies that

have been selected are appropriate (Sileyew, 2019). In order to attain this goal, the following

subheadings of this chapter will be discussed: research philosophies, research approaches,

research design, data sampling, research techniques and procedures, ethical issues, and a

summary of the chapter.

Research philosophies

The process of developing research assumptions, knowledge, and nature is an example of what is

meant by the term "research philosophy" (Dudovskiy, 2022). The assumption may seem to be a

preliminary statement of reasoning, but in reality, it is based on the knowledge and insights that

the philosophizing person has gained as a result of engaging in intellectual activity. Additionally,

Dudovskiy (2022) argue that assumptions are what drive research. This suggests that different

researchers may hold a variety of beliefs regarding the nature of knowledge and truth, as well as

the means by which these are obtained. In the context of research, a scientific research
20

philosophy refers to a methodology that scientists employ as a means of converting ideas into

knowledge.

The identification of research philosophy occupies the topmost layer of the "research onion." As

illustrated in the figure below Thus, a more in-depth discussion of this topic ought to be the first

thing that the researcher does in the chapter of the study devoted to research methods.

The researcher utilized the positivism philosophy, a correct and impartial analysis of the data at

hand is necessary for the positivist view of knowledge, which requires that the data be

interpreted. Observation is frequently the source of such knowledge, which can be conveyed in a

form that can be physically experienced. A philosophy of knowing, also called an epistemology,
21

known as positivism maintains that the only valid and trustworthy form of knowledge is that

which is obtained through personal experience or direct observation. The collection of objective

and, as a result, valid data can was accomplished through surveys thereby having direct and fast

hand information on the views and feelings of the employees working at amazon warehouse.

Quantifiable observations are required for statistical analysis. A positivist researcher is one who

holds the belief that there is one objective reality that can be observed by a researcher with little

to no influence over the object that is the subject of the observation (Park et al., 2020). The

proposition held by positivists is that the scientific research method generates answers to

research questions or hypotheses that are accurate, verifiable, systematic, and theoretical. In

addition, they assert that the scientific method results in answers that are objective and technical,

and that these answers are able to be universalized and generalized across all different cultural

and historical contexts.

This philosophy was considered by the researcher because a research that takes a positivist

approach enables the researcher to examine a wide variety of scenarios in a relatively short

period of time.

Research approaches

The researcher will use a deductive methodology which will extrapolate through the steps

outlined for an inductive research approach. In this approach, researchers begin with an

intriguing social theory, and then test its implications with data, progressing from a more general

level to a more specific one (Streefkerk, 2019). People have a tendency to connect the scientific

method, which involves deductive reasoning, with research. The researcher examines the work

of other people by reading existing theories about the employee retention rate; several scholars
22

have published works in respect to the condition of employee retention rate at amazon and

general condition of its employees.

Research design

The purpose of a research design is to ensure that the research design is designed accurately so

that the researcher will have the ability to address the research problem with as much clarity as is

possible (R, 2020). This is accomplished by ensuring that the evidence gathered will allow the

researcher to do so. In the realm of research that pertains to the social sciences, gathering

evidence that is pertinent to the study problem often entails defining the kind of evidence that is

necessary to validate a theory, assess an intervention, or precisely define a phenomenon. This is

done in order to guarantee that the evidence gathered is pertinent to the issue that the research is

attempting to solve. On the other hand, researchers frequently start their investigations way too

early, before critically evaluating what information is necessary to answer the research questions

posed by the study. If these design issues aren't addressed first, it's possible that the conclusions

that are drawn as a result won't be very strong or convincing, and they won't do a good job of

addressing the overall research problem.

In this study the researcher will utilize quantitative research design after critically analyzing the

research questions and how well to tackle them, the purpose of employing a quantitative research

design is to ascertain the percentage of people who hold particular beliefs, behaviors, or

emotions. In contrast to the objective of qualitative research, which is to gain more focused or

emotional insight, quantitative projects involve large sample sizes and a focus on the quantity of

responses. It is common practice in the design of quantitative research to pose the same set of

questions to all of the respondents. This enabled a thorough and objective examination of the

entire data sample from previous works and surveys that was undertaken, The information will
23

be presented in a numerical format making it possible to conduct quantitative analysis on it by

making use of statistical methods.

When conducting quantitative research, closed-ended questions are almost always preferred over

open-ended ones. When given a predetermined list of responses to choose from, respondents

typically are unable to provide lengthy responses that are open-ended. When compared to the

design of using open-ended qualitative questions, this method for conducting quantitative

research is noticeably more time and labor efficient by eliminating time-consuming process of

coding a large quantity of open-ended responses, which is one of the reasons why it collects

more data. In quantitative research, the design of the study frequently enables the addition of

"Other" category to the list of possible responses to questions. This is done when it is deemed to

be appropriate. The exact responses of respondents who do not directly fit into the main

categories can be recorded and used in the analysis of the research project's results if the

respondent gives permission for this to happen.

Sample size and sampling method

The sampling method for the study will be simple random sampling. A form of probability

sampling known as simple random sampling enables researchers to select a sample of

participants from a population in such a way that every individual has an equal chance of being

chosen for the study. This type of sampling is also known as probability sampling. It is the way

of choosing samples that is the most fundamental, uncomplicated, and straightforward, and it is

usually used when a researcher wants to examine a large and diverse population (Lim et al.,

2022). This is achieved by randomly selecting interested participants, who worked at amazons

warehouses in the UK and some who had resigned. The size of the research project's sample

population acts as a reflection of the study's intended audience because of the similarities
24

between the two groups. The researcher will need twenty five people who worked in Amazon

warehouses in the UK in order to perform this study. These people will be recruited by the

researcher.

Data collection instruments

The collection of primary data is a method that will be utilized for the gathering of trustworthy

information. Questionnaires will be used as the source primary of data. It will be formulated

using previously established theories of retaining employees and considered the research

questions in line with the objectives of the study, Using software designed specifically for data

analysis, the data collected will be analyzed for patterns (Excel). The most effective and efficient

method of data collection and variable measurement is the use of questionnaires. The researcher

will carry out a sizable sample of workers who are employed by Amazon warehouses in the

United Kingdom. To begin, each of these employees will be given online forms that will be

completed and submitted within three days. Google Drive will be used to store the information

for potential use in the future. In addition, Microsoft Excel will be used to analyze the data.

The method of collecting secondary data will make it easier to review theories and literature

from a variety of sources, such as research papers, journal articles, and thesis reports. These

resources are necessary for establishing a connection between the factors that influence

employee retention and the strategies for retaining employees, which is one of the primary goals

of this research.

Data analysis method

The analysis and interpretation of the survey results will work best when performed using a

quantitative data analysis method. It relies on statistical and mathematical techniques to identify

patterns, relationships, and differences among variables. It is a valuable research approach that
25

provides precise and objective results, but it is important to ensure the validity, reliability, and

generalizability of the findings. Excel will be utilized in the analysis of the survey results by the

researcher. In addition to that, a comprehensive study of secondary data compiled from a variety

of business databases, journals, and interviews with company insiders was carried out.

Ethical considerations

Research ethics are of the utmost importance when it comes to protecting human rights and

dignity, upholding the integrity of science, and fostering scientific engagement with society.

These criteria ensure that individuals' participation in research studies is entirely voluntary, well-

informed, and unaffected by any dangers (Resnik, 2020). The researcher needs to find a way to

pursue important research goals while also conducting ethical research using appropriate

research methods and procedures. It is always necessary to protect participants from suffering

permanent or excessive harm, regardless of whether or not the harm was intentional.

Because it is difficult for other people to trust the findings of the study if the procedures used in

the research are unethical, the credibility of the research will suffer if research ethics are

disregarded. Even though the results of a study would be beneficial to society as a whole, this

does not give researchers permission to violate the participants' human rights or the dignity they

deserve.

The researcher ensured that all of the prerequisites outlined in the Data Protection Act are

satisfied in order to uphold the participants' constitutionally protected right to privacy and protect

the confidentiality of their personal information. The researcher was also responsible for

overseeing the processes of Application Approval and Ethics Policies at the University of

Coventry. In addition the researcher went through all the rules and regulations not forgetting the
26

list of individuals who were going to be participating in the survey before the actual research was

carried out.

Chapter summary

This chapter entails the methods used by the researcher in conducting the research in terms of

research design, research approach data collection and the appropriate ways of critically

analyzing the data collected in order to make an independent and accurate conclusion. The

methodology used by the researcher was set to be in line with the research questions and

objectives.

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