The Role of Human Resource Managers on Employee Motivation to Avoid Labor Market Competition in Amazon

Introduction

For companies, human capital is their most valuable asset. Amidst inter-company competition, human capital is more likely to be affected in the current labor market. Labor market competition is significant in any market since it controls human capital. Liu et al. (2020), in their analysis of labor market competition, concur that competition between firms on human capital determines the firm’s success. Here, the firm with the best human resources gets a competitive advantage over the others (Tj, 2019). In addition, in the current technological world, human capital makes a company productive in spite of the assets in the company (Liu et al., 2020). Mandhani (2021) posits that workforce intelligence determines the company’s net worth in the current knowledge economy. Furthermore, training new employees and maintaining productivity proves costly while having low returns (Jaffe & Bensman, 2016). To replace employees, most firms rely on employees that have been fired from other competing firms. Liu et al. (2020) posit that the negative results that come from employing and training new workers make firms rely on human capital from preferable peer firms to satisfy their needs in human capital. Clearly, there is a significant need to retain employees. Therefore, attending to your worker’s needs makes the organization competitive while avoiding the effects of human labor market competition.

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Research in human resource management has shown that employees need the motivation to improve their production capacity. Tangible rewards make an increase in the productivity of the company’s human capital, thereby giving the company a competitive advantage. At the same time, the tangible rewards keep the employees happy with their jobs while keeping their work morale high. Mandhani (2021), in his study on the effects of rewarding the employee, emphasizes that systems that reward employees balance organizations’ objectives that compete with each other, thereby meeting employee needs, customer requirements and increasing the value of an organization. Effectively giving both tangible and intangible rewards helps the company to have a stable and reliable workforce. Mandhani (2021) confirms that offering tangible and intangible rewards to employees helps maintain employees, attract suitable employees and improve efficiency. Therefore efficient strategies by the human resource department to improve the working conditions of their employees will make them productive and make them stay at the company.

Recently, disturbing accusations facing Amazon may lead to the company losing employees while incurring losses. Chan (2021) confirms that the National Labour Relations Board (NLRB) has received 37 charges from employees. Currently, the figure is tripling (Chan, 2021). Currently, the analysis system leads to firing (Sainato, 2020), while the warehouses face in-house problems, demanding unionization for better pay and working conditions (Jaffe & Bensman, 2016). Human resource intervention is critical to solving the situation at Amazon. Now, the human resource needs to pay attention then come up with rewards that motivate and keep the workers satisfied. Tj (2019) insists that an effective human resource management strategy has helped companies gain a competitive advantage by motivating human capital against their peers who use alternative approaches. Therefore, companies aiming to claim competitive advantage have to concentrate on their employees. Tj (2019) emphasizes that fulfilling the employee needs will help an organization get what they demand from the employees. With the current demands from Amazon for employees to achieve certain thresholds (Chan, 2021), they need to ensure that the employees are satisfied (Tj, 2019). In fact, employee success depends on job satisfaction. Besides, to avoid the loss of employees to peer companies, Amazon needs strategies to evade the labor market competition. This paper aims to study how salary and benefit increment will avoid labor market competition while ensuring a competitive advantage in Amazon.

Purpose of the Research

  • Identify the impact that increasing salaries and benefits will have on improving employee productivity.
  • To find out how satisfied employees help with curbing labor market competition.
  • To find out the role of the human resource department in ensuring employee satisfaction while avoiding employee loss to competing companies.

Problems

  • Amazon is facing challenges with workers at their warehouses. A number of complaints have emerged, from, accidents reducing hourly rates, making workers get low salaries or lose jobs (Jaffe & Bensman, 2016). According to an article by Sainato (2020), workers claim that matching the computerized supervision system makes the work tiresome in deplorable warehouse working conditions. Besides, the on-site medical facility is inefficient. The injured workers spend less money they have on treatments. Therefore, employees are under pressure to work faster with low rewards from their labor.
  • Amazon faces resistance from the employees that may result in employees leaving the firm and working at rival companies. There are lawsuits filed with NLRB leading to employees moving to other competitor companies (Chan, 2021).

Research questions

  • What are the functions of the Human resource department in ensuring employees’ needs are met while making them stay at Amazon?
  • What are the factors that cause the employee to fail to meet their demands, file complaints, and move to competing firms?
  • What strategies should the human resource manager employ to ensure employee efficiency while meeting organizational goals at Amazon?

Recommendations

  • Amazon needs to ensure they give their employees time for themselves. Work-life balance will lower the stress levels of the workers.
  • The HR team needs to recognize and award performance. Working on the warehouse conditions may be motivated when people work with getting a reward in mind.
  • Amazon needs to keep ensuring good health in the facilities. Amidst an ongoing pandemic, the warehouse working conditions will maintain their employees.
  • Amazon needs to work on a strong sociable culture. This will allow for communication across the job levels. Besides, when the workers’ concerns reach top management, they feel comfortable and may not wish to leave.

References

Chan, J (2021). Amazon Workers Detail Disturbing Work conditions in Complaint Filed to the National Labor Relations Board. Entrepreneur.

Jaffe, D., & Bensman, D. (2016). Drawing and picking: Precarious work and labor action in the logistics sector. Working USA, 19(1)

Liu, Y., Pant, G., & Sheng, O. R. (2020). Predicting labor market competition: Leveraging interfirm network and employee skills. Information Systems Research, 31(4), 1443-1466.

Mandhani, P. M. (2021). The rewards value chain: Optimal mix of tangible and intangible rewards for enhancing business performance. The Journal of Total Rewards 30.2 (2021): 43-52

Sainato, M. (2020). “I’m not a Robot.”: Amazon Workers Condemn Unsafe, Gruelling Conditions at Warehouse. The Guardian, 5.

Tj, H. W. (2019). Impact of Work Value Affecting Employee Job Satisfaction for Improving Organizational Performance. International Journal of Science and Society. 1 (4), 88-96

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