Amazon has an employee retention problem, losing the employees it wants to keep at double the rate of last year.
According to a report by Business Insider, Amazon’s “regretted attrition” has doubled from last year. “Regretted attrition” is the term for losing employees a company wants to keep. Internal data seen by Insider says the company’s regretted attrition has risen to 12.1% since June 2021. In contrast, that same rate averaged 5% from 2016 till mid-2021.
Amazon and other tech companies are fighting to keep their top talent in-house. The company recently increased its maximum base salary to $350,000, prompting Microsoft to increase its own salary budget and increase employee stock compensation.
Amazon’s attrition appears to be company-wide. The Delivery Service Partner team saw a total attrition rate of 55%. Prime Air, the company’s drone delivery division, saw its attrition hit 30%, with at least one of its teams losing 71% of its employees. Even the company’s golden goose, AWS, has been hit hard, with some units losing as many as 35% of their personnel.
According to Insider, compensation was the top reason for the regretted attrition, coming in at 26.8%, with career development issues coming in at 19.5%.
It appears Amazon still has a long way to go if it wants to keep its talent and remain competitive.
