Amazon Effect concerning Increased Pay and Land Rush in the U.S

Amazon Effect concerning Increased Pay and Land Rush in the U.S

Management of businesses in a competitive environment has been a big challenge, as depicted in the article “Amazon Effect, Is Hiking Pay and Fuelling Land Rush in US.’’. Competing for skilled workers is a challenge for managers, especially when workers are scarce. In a competitive business environment, unemployment rates affect warehouse managers because they scramble for the few skilled, talented pool, are required to apply appropriate employee-retention strategies, and plan well for the future growth of their companies.

Unemployment rates have a far-reaching effect on the management of businesses. As discussed by Michael Sasso and Steve Mathews in the article, the expansion of warehouses in the U.S, particularly in Atlanta, has fuelled high competitiveness in the job market, impacting the existing businesses both positively and negatively (Sasso & Mathews, 2018). For instance, the Amazon company hired a large workforce to fill up its distribution centers, leaving a few skilled people under scramble by the upcoming companies. The high unemployment rate also affects the managers of warehouses indirectly. Employed people are empowered to purchase items they need from the warehouse stores. In essence, if the unemployment rate is high, only a few people have purchasing power. This effect ultimately lowers the sales potential of the companies

Good managerial practice requires managers to have strategic ways of retaining a talented workforce. Employers should provide an opportunity for learning in the workplace (Lowe, 2012).  Employers should identify the professional needs of their employees and give them a chance to learn from their mistakes. Besides, this strategy allows relatively lower-skilled workers to acquire additional skills. Employers motivate workers who have exceptional skills through wage increments. For instance, scarce Forklift drivers, demand high pay of $15-17.5, which is above what cashiers and salespeople of the retail shops earn (Sasso & Mathews, 2018). This strategy not only increases the cost of expenditure, but it also ensures that the workers are satisfied. Therefore, employees do not look for better opportunities.

In a competitive environment such as Jackson County, where there are more warehouses, planning is crucial to ensure that companies optimize their talent pool and achieve improved outputs. The manager’s daily duties include fostering leadership development culture in the company. They do so by engaging their workforce, performance planning, and creating a conducive work environment (Lowe, 2012). This kind of workplace provides an opportunity for employees to define their purpose and work for future personal development. In addition to workforce management, a manager should also focus on facility management and the acquisition of additional assets. As reported by Sasso and Mathews, the tracts of land near highways and with ease of access to utilities have doubled their prices for the previous years (2018). these changes, the companies are financially implicated, meaning that they will spend more capital to invest in warehouse establishment in the county. Therefore, while doing both tasks and in such a competitive environment, the manager should balance expenditures to ensure optimization of revenue generation.

In conclusion, the employment rate has a direct effect on businesses. Decreased unemployment rates create competition for skilled workers. Similarly, an increased unemployment rate directly affects the purchasing power of people. While managing the company’s operations, it is essential to consider all aspects of business, including the dynamic commercial changes both in the production and consumption of products.

References

Lowe, G. S. (2012). Creating healthy organizations: How vibrant workplaces inspire employees to achieve sustainable success. Toronto: University of Toronto Press.

Sasso, M., & Mathews, S. (2018). Amazon Effect, Is Hiking Pay and Fueling Land Rush in the U.S. Retrieved March 15, 2020, from https://www.bloomberg.com/news/articles/2018-02-27/-amazon-effect-is-hiking-pay-and-fueling-land-rush-in-u-s.