Amazon, frequently under the microscope for its pioneering but often criticized management techniques, now requires its employees to commit to office work at least three days a week. This new policy will necessitate some employees to uproot their lives and move to larger hubs closer to main offices.
Amazon spokesperson Brad Glasser has defended this return-to-office mandate, claiming it has stimulated more energy, collaboration and connections within the company. And it might benefit Seattle by attracting more well-paid residents to the area.
However, the ground reality as seen by the employees seems starkly different. According to Slack messages from several workers, a significant number of employees, previously operating virtually, now face a pressing dilemma: relocate to an Amazon hub, find a nearby office or tender their resignation. This abrupt policy shift has left employees feeling disconcerted and undervalued, with some already contemplating job changes and others anxious about the prospect of increased workloads due to potential colleague resignations.
This “relocate or resign” policy bears an uncanny resemblance to AT&T’s June ultimatum to its employees, which has raised several eyebrows and suspicions of a covert layoff strategy. It’s not uncommon for corporations to use intricate and complex language to obscure their actions and intentions. In this case, the seemingly straightforward phrase “relocate or resign” could be a smoke screen concealing an attempt to shrink workforce numbers without the accompanying negative press that mass layoffs invariably attract.
The policy lands like a one-two punch for employees. They are caught off guard by the sudden change, and then face a Hobson’s choice — a choice where only one option is realistically feasible. They are either forced to disrupt their lives and relocate or hand in their resignation, creating an environment akin to an ambush and leading to a lose-lose situation that leaves no winners.
The fallout from such a policy can be devastating to team morale and corporate culture — two cornerstones of any organization’s success. Forcing employees to relocate can severely destabilize team morale, similar to a gust of wind sweeping through a delicately constructed house of cards. Employees, feeling like expendable pawns in a grand corporate chess game, face an enormous emotional strain having to choose between their job and their home. This can lead to a significant drop in morale, causing a domino effect throughout the organization.
Moreover, such policies can fracture the company culture, the adhesive that binds an organization together, creating a sense of community and shared purpose. The fallout from these policies creates a ripple effect throughout the organization. Employees who remain, witnessing their colleagues forced to make life-altering decisions, may begin to question their own job security, leading to a pervasive sense of fear and unease. This can envelop the office like a fog, dampening productivity and motivation, and reducing the company culture to a mere ghost of its previous vibrant self.
However, amid such challenges, it’s essential to focus not just on the stumbles but also on recovery and prevention. Companies should make empathy and understanding the bedrock of their policies, treating employees as people with lives outside of work rather than just chess pieces to be moved around a board at will. Additionally, in the aftermath of the pandemic, the future of work has shifted. Embracing a flexible hybrid model that caters to employees’ needs, instead of adhering to a rigid structure, can prove to be more efficient and foster a more conducive work environment.
If companies seek to avoid the pitfalls of demoralizing their workforce and shattering their corporate culture, they should not follow in the footsteps of Amazon or AT&T. Values of understanding, flexibility and empathy are not just beneficial for the well-being of employees, but they also have the potential to boost business outcomes by fostering a motivated, engaged workforce.
Layoffs at a company like Amazon – which has a relatively low cash salary ceiling – is more of a way to steal employee pay, in the way of keeping unvested stocks that were part of a compensation package.
I never liked stocks as part of compensation packages purely from the point you don’t even know if you will actually vest and receive that stock because who knows what will happn in 3-5 years. Let alone what the stock price will be by then.
Don’t the employee options received up to that point continue to vest over time?
Amazon corporate employees get RSUs which are stocks, not options. After the new hire RSUs go away, you end up with two vest dates a year and new comp offerings start the following year (so in 2024 you’ll see new money in 2025 plus a small base salary bump that goes in effect that month).
Tech salaries are frequently stock based, but Amazon’s is unusual in that it’s only twice a year, and bumps start the following year, and they recently made the change to do 2 year offers instead of 3 years.
I can’t speak to Amazon specifically, but a very common practice is
4 years for full vesting
After 1 year you get 25%
Every quarter after that you get 6.25% (25% a year)
But you don’t know if you’ll even make it a year in the current environment