The Cost of Convenience & Social Responsibility

For those who don't know me, my name is Elizabeth Miles. I am an author, coach, and entrepreneur. I think it's fair to say that 2020 has been the year we all want to forget. Each and every one of us, no matter where we are on the planet right now, is impacted by COVID-19. People are sick. People are out of work. We are all on lockdown.

But the one thing that seems to keep going...Amazon.

Full disclosure - I am a small business advocate. Nonetheless, I still appreciate things like lower prices and convenience. While many are enjoying grocery delivery and free two-day shipping on just about anything one can imagine, I am sitting and wondering just what the true cost of that convenience is.

Does it make life better? For whom? How?

As a consumer, sure, it's great. We don't have to go anywhere for the things we need and want. When you are socially distancing for days and weeks, this is certainly a benefit. On the flip side, though, has anyone ever thought about what things are like on the inside? Ever wonder what happens to get your package from that Amazon facility to your door? What's it like to be an Amazon employee?

I recently sat down and talked with a former associate, who was employed by the company for over eight years, working both the inbound and outbound side of the operation. He had quite a bit to share, so I am writing this as a multi-piece story to shed some light on the true cost of our convenience, and to pose a few questions to each of you, so that you can decide for yourself.

Allentown-area native, John Chapkovich started back at Amazon in 2010 as a temporary associate in a new building. He was young, bright-eyed, and eager to start a job that, in his head, was only going to be temporary until he could find something better. Though his expectations were low from the start, he ended up getting hooked at Amazon because, like so many others, it was a good paying job for the area. He was hired on as a full-time associate after six months, helping on numerous projects and learning almost all “direct function” jobs. Direct functions are those that have the dreaded “rate” that make all direct function Amazonians quiver.

John shares: "One of the things I could not understand when I first started was why people complained about not being able to make “rate”. Once I started in my leadership positions, 3 years into my tenure, I then saw why. I want to note that I use the quotes here because this is how it is said at Amazon. “Rate” is like this evil being that seemingly took over your entire life while at Amazon.

"Ask most employees that have, or do, work, at Amazon about “rate” and they will almost certainly give you a PTSD-like look, and explain their experience with Amazon and that dreaded “rate." If anyone interviews a former-Amazon associate for a new job, they will usually be quick to ask their prospective employer about the expected pace of the new position. Unfortunately, I wish I was kidding here. To some, it may not sound so bad. After all, a rate is just a metric that Amazon uses to track the flow of work that an Associate does, what is the big deal? "

For those not familiar with metrics, the rate is the units per hour (UPH) count, showing how many items you have processed and how much time it took to complete it. Sounds simple right? How could this be a bad thing?

The controversy is up for debate.

John continues: "One thing that has always got me upset is when you see a reporter confront an Amazon representative about the rate, and the accusations of how it is so hard to “make rate.” Representatives will almost always reply by saying that the rate is based on the actual rates that associates, at that particular building, have done. Technically, they aren’t lying. The problem lies in how Amazon (and its computer system) looks at, and disciplines for, the rate.

"At Amazon, rate is calculated every few weeks by taking the rates of all the associates in a function and taking the average of the top 75% of them and making that the new rate. If those numbers are higher, the rate increases, if they are lower, they lower the rate. There are two problems here.

"Here is an example of the “rate” increasing. Let us say, for the sake of math, that the current rate is 100 units per hour. The chart below will show what Amazon looks at (I would like to note this is an abridged version of what they look at, if you would like further clarification, you can contact me for more detail). "

Name Manager Total Units Total Hours UPH

00001 Manager 01 1956 8.73 224.05

00002 Manager 01 1784 9.25 192.86

00003 Manager 01 1535 6.54 234.7

00004 Manager 01 865 8.65 100

00005 Manager 01 1672 9.65 173.26

00006 Manager 01 1324 9.3 142.36

00007 Manager 01 971 9.27 104.74

00008 Manager 01 1457 9.3 156.66

00009 Manager 01 1423 9.26 153.67

00010 Manager 01 1246 9.27 134.41

According to Mr. Chapkovich, Amazon would take the highest 75% of the employee’s performance, in this case, the top 8 and take the average rate. The average rate for this chart would be 173.88. In this case, the rate would go UP 73.8%. Anyone currently under that 173.88 UPH would now be below rate and would now get disciplinary action. In the example above, 7 of these Associates would be getting disciplined until they either make the new 100%, or they will be terminated, this includes the one at 173.26 percent as well because they are only at 99.64%. Mr. Chapkovich mentioned that he has watched co-workers being terminated for a 99.9% rate, with Amazon management openly admitting that these employees were terminated because they were not working at 100%.

A decrease in the rate, on the other hand, is dependent on a problem occurring in the process. When there is an issue with the process, numbers suffer. John states, "anyone that has done stow for Amazon knows that your biggest limiting factor is finding the space to put your items on the shelf, especially around Prime Day and Peak times. Most people’s performance now suffers.

"The system for disciplinary action doesn’t know this, and will still push out disciplinary actions for anyone that falls into the discipline category. These papers are automatically generated to a manager and they must have them all signed within a few days for them to be "in standard."

"The problem is, most managers, in my experience, don’t want to stand up for their associates to say that this is wrong. I have been to a start up meeting where I listened to my manager, who later was promoted, telling everyone that they knew that we were at 125% capacity but that everyone was still being held to the rate and our time-off task. I watched as my fellow associates were written up, or terminated, for at least 5 weeks until the rate was lowered to accommodate the new capacity. The last scenario is not an odd occurrence though, unfortunately. This happens numerous times throughout the year before those rates get lowered, IF they do at all. "

Let's take a step back from this for a moment. Think of how much stress this puts on the human mind! Think of how much stress this puts on your body! You are in constant fear of losing your job, and you are put under conditions where you have to constantly work at a faster rate than the days or weeks prior.

It's like the hamster constantly trying to outrun the wheel, and it leaves me wondering: is this really progress? Is this really fair or acceptable? And, is the added convenience worth damaging the mindset, motivation, and mental wellbeing of those working there?

Amazon prides itself on paying a decent wage and benefits, and, perhaps this offsets the seeming abuse that employees take. After all, at the end of the day, the bills still have to be paid, and food still needs to go on the table. However, while the most common complaint from Amazon employees seems to be the rate, Mr. Chapkovich asserts that there are so many other issues in the company that could dull your experience, some of which can get you escorted out, even if it's not your fault.

How good would the pay and benefits need to be to keep employees working in this type of environment?

As we near the end of 2020, and move forward as a society, I think it's even more important that we, as consumers, start to question this. Let's face it, the world works faster now, and, honestly, there are other examples of companies out there that work under similar conditions, those that are just as stressful.

So, I ask you - what is the real cost of convenience?

Join me in the next section (coming later this week) to hear more.