Let’s see in this article why Amazon is amongst the top five most profitable companies in information technology, based in the United States of America?
Why Amazon Is Amongst The Top Five Most Profitable Companies?
Amazon motivates smart work and service to their employees and the business. It has introduced some growth-oriented rules that will make amazon’s working process more effective and legit. One such rule is Amazon‘s Point System9. Amazon assigns points to the employees who have violated a rule or their guideline. It can fire the employees if they have made points up to a given limit. It noted that if an employee gets six points they become eligible to be removed from their position. This way Amazon keeps track of any form of infringement. It is smart and thoughtful of Amazon to come up with an idea like that, which could further improve the credibility of their business.
Therefore, amazon operates on the point system. The situation is all good to an employee as long as they don’t cross the point limit.
How and when does Amazon assign points?
The non – exempted staff members of Amazon are required to have regular attendance and maintain punctuality status, thus increasing their productivity to achieve the company’s goals.
But some workers may ask for frequent leaves or get unacceptably late to work. To avoid this carelessness by employees, Amazon brings forth its point system policy.
Every employee is supposed to give prior notice for their absence or notify of their late arrival. If not done so, their absence or tardiness will be considered unauthorized and they will come under the risk of suspension by losing their points. Their points will be assessed for the reasons listed below :
• For absence: A staff member who misses one or a few consecutive days for one particular reason or arrives two or more hours after the scheduled time will be considered absent. In such a case of unauthorized absence, the employee will be given 5 points.
• Late: 15 minutes – 2 hours late can burden the worker with a total of 3 points.
• Tardiness: The employee can be given 1 or 1.5 points for tardiness, that is, arriving up to 15 minutes late from the scheduled time.
Amazon takes disciplinary actions against the employees. Such actions cause an infringement of any kind.
They will start giving warnings to employees when the infraction of tardiness and absence discussed above reaches the following level within the period of 12 months.
• Verbal Warning: If an employee reaches 10 points through violating the prescribed rules, then the company’s need arises to provide them with a verbal warning.
• Written Warning: When the employee’s points reach even further, they are given a warning in written form. A written warning is given when the points of the employee reach 15 or beyond.
• Termination: The company is liable to remove the employee from its job if there is a lack of correctness in their action and they exceed their point limit. Twenty points within a year can lead them to the final stage of termination.
An employee must notify their department for their absence or late arrival that is in accordance with their department policy. If they fail to do so, they can get subjected to the specified disciplinary.
- First failure to inform the department about their absence/lateness may result in Verbal Warning.
- Second-time failure to notify their department may result in Written Warning.
- While the third and last failure to inform about their absence will lead to final termination.
Employees who get absent for two roughly three consecutive days without any prior notice will be presumed to have resigned from their position. Therefore, their employment status is taken away from them on their third day of absence.
3. Leave laws
Even if the Employees are taking leave for legal laws, like for Family and Medical Leave Act or Disability Act or other state or federally protected leaves are responsible for providing notice for their absence as per the company’s policy. Unable to provide any notice for their absence will further result in disciplinary actions discussed above.
However, during coronavirus, the company had loosened its policy on a point system. It had offered its warehouse workers and employees unpaid leaves without reducing their pay or assigning points. They have informed them that it will not give any points if the workers are not able to come to work during these times. It offered employees both work from home and work from office jobs.
Some extraordinary rules of amazon that can lead an employee to termination
Mostly the guidelines of Amazon are strict and non-bending. It causes the employees to get points that result in their termination.
Some of such rules include :
• Drinking water:
The employees at Amazon working center are expected to bring transparent water bottles, which are only stored with water and no other liquid. Any other liquid apart from water is restricted to bring to work. It can get you a point or two.
• Fast work:
Slow work can get the worker fired. According to the sources, it is discovered that the workflow of the employees is tracked through some scanners. The scanner directs them when to move on to the next order. If the worker has been unable to complete the ongoing task within the time limit, they face the risk of being terminated. Slow work is a complete no-no for Amazon.
• Usage of tapes for packing:
Amazon workers are instructed on using less amount of tape. They have supervisors that coach them how-to on the correct usage of tape and packing materials. If someone continually wraps in a wrong way or in a way that goes against the guidelines of Amazon, then their position could be at stake.
The workers are instructed to not talk too much with their neighbors or get socially mingled with the coworkers. Their social habits are tracked by Amazon supervisors. If the habits of the employee are deemed to be repeated they can either be separated, assigned points, or can even be given a verbal or written warning.
• Wearing up accessories:
Wearing watches to work can be an issue for the employee. It was asked by the workers to remove their watches before starting with their tasks. This rule was designed to stop any kind of theft since amazon also sells watches. Similarly, they are prevented from wearing any sort of cosmetics that could be sold by amazon. Wearing lipstick to work can lead you into trouble, but they accept lip glosses.
• Showing up late:
As discussed above, coming late to work can be a serious problem for the employees. Half an hour late can get them half a point. One or more than one hour late can make them earn 1 point. And not attending work at all will put them into a situation of getting 3 points altogether.
So these are the reasons why Amazon is amongst the Top five most profitable companies.