Team 5
Make an argument that Zappos’s use of human resources data will be more effective than Amazon’s approach.
Topic Overview
Zappos’ use of human resource data will be more effective than Amazon’s approach primarily based on the customer service culture it has adopted. Zappos doesn’t hire just anyone though, there are a series of tests that new hires must go through before they begin their training. Zappos employees are selected very purposefully, looking for those people whose values and mindsets match the company’s, this is to help sort out the “warm bodies” from the spirited people who believe in the company’s goals.
The model that Zappos has implemented is all about finding out if new hires that are going through training are really committed to working for the business. It is also an effort by the business to ensure that the people they hire are interesting and keep the business that way. It’s a way to prevent the company from getting employee’s that don’t want to work there or may be too bland for the business. Roughly 10 percent of the new hires take the $1,000 incentive to quit and move on. I can see this as an effective tool to keep interested and interesting employees working for the Zappos business. If an employee chooses to stay employed, they have typically bought into the brand.
Zappos’ goal is to not simply sell shoes, rather it is to build relationships with its customers and provide memorable experiences, resulting in repeat customers. Making a customer’s shopping experience memorable and enjoyable in turn makes it fun and interesting for the employees as well. With a more enjoyable environment, Zappos employees are less likely to burn out as quickly as Amazon employees. The stress level is not as high and the demand for results is not as rigorous. Additionally, Zappos employees have more control over their own work and production. While they have gone away from a traditional boss-subordinate model, work and power is more evenly distributed among all members of the group.
References
- O’Neil, C. (2016). Weapons of math destruction: How big data increases inequality and threatens democracy. Broadway Books. CH7 sweating bullets
- Kantor, J. & Streitfeld, D. “Inside Amazon: Wrestling Big Ideas in a Bruising Workplace.” The New York Times, August 15, 2015.
- Krouse, S. “The New Ways Your Boss Is Spying on You.” WSJ, July 19, 2019. [pdf]
- (May 22, 2008). “Better Than Zappos Shopping? Working There.” NPR.
- Richard Feloni (Feb 19, 2016). “A former Zappos manager explains how her job changed after the company got rid of bosses.” Business Insider.