What We Can Learn From Amazon’s HR Tech Disaster?

November 3, 2021

Amazon was recently exposed by the New York Times for its failure to deliver benefits and pay to some employees – which shocked many across the larger HR community. How could an organization as large and sophisticated as Amazon make a blunder like this, and not pay leave properly to its people? Doesn’t Amazon have HR technology in place to support their 1+ million employees?

Unfortunately, no, they did not. This major misstep shines a much-needed spotlight on the fact that technology management mishaps can happen to anyone.

The general assumption is that big companies have it “all figured out,” while small companies struggle to maintain their HR technology environment or business processes. And while this may be true in some industries, HR “overload” exists EVERYWHERE right now. Organizations of all sizes are working tirelessly to develop empathetic strategies for their employees so they feel valued and maintain their sense of belonging at work. But that’s nearly impossible to cultivate if the basic blocking and tackling of benefits and pay are left to the wayside.

A recent study by McKinsey & Company points out a larger disconnect between employers and employees, which technology is always aiming to reduce. The study points out that regardless of their current efforts, employers must double-down on the employee experience, viewing organizational structure or process factors like pay or leave management, as bare minimum requirements. Translation: a company’s investment in technology to help manage their business and their people is table stakes.

Companies of all sizes should adopt a “double down” mentality to avoid a brand nightmare like Amazon while ensuring the basics like HR technology are humming along. By investing in the proper HR technology system(s) to manage people data effectively, HR teams and business leaders alike can be more aligned with their people. Taking steps to conduct the proper due diligence on the front end of a purchase will ensure the technology vendor(s) you partner with can truly address the company’s current needs and keep the ball moving forward.

Work with your advisors to craft processes and procedures that work for you and your employees, then “double down” on your technology to automate them.

Need help finding the best HR technology vendor for your team? Connect with BTR today!.


About the Author

Corrina Nation fosters relationships with employers and insurance brokers to support their HR technology strategies. She also manages key national partnerships, provides guidance to the greater BTR network on emerging trends, and delivers thought leadership on how employers can leverage technology to better support their people. Corrina resides outside of Washington D.C.