The Oxford dictionary defines workforce as ‘the people engaged in or available for work,

either in a country or area or in a particular firm or industry’. It also means workers engaged in a
specific activity. The workforce can also be called the labor force. The workforce composition of
an organization is the number of people, the type of people, and the class of people the
organization has. Forecasting is a technique that uses historical data as inputs to make informed
estimates that are predictive in determining the direction of future trends. Forecasting simply
uses past and present trends to determine future trends and events. The staff at Amazon come
from unusually diverse demographic backgrounds. The company is 47.6% female and 38.7%
ethnic minorities. Even though it has excellent demographic diversity, Amazon notably lacks in
political variety. It has an unusually high proportion of employees who are members of the
Democratic Party, at 88.0%. Despite having coworkers who agree with each other about politics,
employees at Amazon tend to have a relatively short tenure. Staff members usually stay with the
company for 2.7 years. Amazon is an industry leader with 1,608,000 employees and an annual
revenue of $469.8B that is headquartered in Seattle, Washington, US. Amazon currently has 110
active fulfillment centers in the US and 185 centers globally. Amazon’s FBA program involves
the use of the company's warehouse facilities for the storage and distribution of goods.

As of 2021, Amazon's workforce consists of more than 1.3 million employees worldwide.
The company operates in several countries and employs people from diverse backgrounds with
diverse knowledge, skill sets, abilities and other characteristics. In terms of gender diversity,
Amazon reported that as of 2021, 42% of its global workforce is made up of women, including
29% of its managers. The company has committed to increasing the number of women in
leadership positions and has implemented several initiatives to support this goal. Regarding
ethnic and racial diversity, Amazon has also made some efforts to improve its workforce
composition. As of 2021, 27.2% of its U.S. workforce is made up of Black, Latinx, or Native
American employees, while 21.7% of its U.S. technical workforce is made up of these
underrepresented groups. The company has set a goal of doubling the number of Black leaders in
the company by 2025. In terms of age, Amazon employs people across a wide range of ages. In
the U.S., the median age of Amazon employees is 30 years old, with 36% of employees over the
age of 35. It's also worth noting that Amazon has faced criticism for its treatment of workers,
including allegations of poor working conditions and low wages. The company has faced several
high-profile unionization efforts in the U.S., including a recent vote at a warehouse in Alabama
that ultimately failed.

Amazon, as a large multinational company, has a diverse workforce that includes full-
time and part-time employees, contractors, and temporary workers. Below is a breakdown of the
different types of workers at Amazon:

Full-time employees: These are permanent employees who work for Amazon on a full-
time basis. They are eligible for a variety of benefits, including health insurance, retirement
plans, and paid time off. Part-time employees: These are employees who work for Amazon on a
part-time basis. They typically work fewer hours than full-time employees and may not be
eligible for the same benefits.

Contractors: Amazon also employs contractors to perform specific tasks, such as software
development or marketing. These workers are not considered employees and may not be eligible
for benefits, depending on the nature of their contract.

Temporary workers: Amazon hires temporary workers during peak seasons, such as the
holiday season, to help with the increased demand. These workers are typically hired on a short-
term basis and may not be eligible for benefits.

Remote workers: Amazon also has a significant number of employees who work
remotely, either from home or another location. These workers may be full-time, part-time, or
contractors, depending on their role.

International workers: Amazon has a global workforce, with employees from various
countries and cultures. These workers may be based in Amazon's international offices or work
remotely from their home countries.

Overall, Amazon's workforce composition is diverse, including both permanent and

temporary workers, contractors, and remote employees. The company employs workers in a
variety of roles, from software development to warehouse operations, and has a global presence.

It's important to note that employee classification may vary based on an organization's unique
circumstances and needs, and there is no standard classification that applies to all companies.
However, here is one possible way to classify Amazon's employees based on their level of
strategic importance and core job functions:

Strategic Employees: These are employees who play a critical role in driving the
company's long-term success and achieving its strategic objectives. This group of employees
tends to have unique skills that are directly linked to the company's strategy. At Amazon,
strategic employees may include executives, senior managers, and specialized teams responsible
for areas such as research and development, technology innovation, and strategic partnerships.

Core Employees: These are employees who perform core job functions that are essential
to the company's day-to-day operations. This group of employees has skills that are quite
valuable to a company but are not particularly unique or difficult to replace. At Amazon, core
employees may include warehouse workers, customer service representatives, software
developers, and operations managers.

Supporting Employees: These are employees who provide support to the core workforce
and help to ensure that operations run smoothly. This group of employees typically has skills that
are of less strategic value to the firm and are generally available in the labor market. At Amazon,
supporting employees may include administrative assistants, HR professionals, and finance
specialists.

Complementary Employees: These are employees who provide additional support or

services that are complementary to the company's core business functions. This group of
individuals has skills that are unique, but frequently not directly related to a company's core
strategy. At Amazon, complementary employees may include contractors, gig workers, and
seasonal employees who perform tasks such as delivery, logistics, or marketing.

It's important to note that these categories are not mutually exclusive, and employees may
fall into multiple categories depending on their job function and level of strategic importance.
Additionally, employee classification may change over time as the company's needs and
priorities evolve.
 Amazon uses a variety of methods to forecast HR needs. These methods involve
collecting and analyzing data to identify patterns and trends, and to predict future workforce
needs. Here are some of the ways that Amazon forecasts for HR:

Historical Data Analysis: Amazon uses historical HR data to identify patterns in

workforce trends. This includes analyzing data on employee turnover, hiring rates, promotions,
and other HR metrics.

Business Demand Analysis: Amazon analyzes its business demand to forecast future HR
needs. This involves analyzing sales trends, new product launches, and other factors that may
impact the company's workforce needs.

Workforce Planning Tools: Amazon uses various workforce planning tools to analyze
workforce data, including forecasting tools and workforce management software.

Talent Analytics: Amazon also uses talent analytics to identify high-potential employees,
predict retention risks, and identify skill gaps.

Artificial Intelligence and Machine Learning: Amazon also uses artificial intelligence and
machine learning algorithms to analyze data and make predictions. For example, Amazon uses
predictive modeling to identify job candidates who are most likely to succeed in a particular role.

Market Research: Amazon conducts market research to identify trends in the labor
market, including changes in workforce demographics, shifts in demand for specific skills, and
changes in compensation trends.

Overall, Amazon's HR forecasting process is data-driven and uses a combination of

historical data analysis, business demand analysis, workforce planning tools, talent analytics,
artificial intelligence and machine learning, and market research to forecast HR needs. This helps
Amazon stay ahead of its workforce planning and ensure that it has the right people in the right
roles to meet its business objectives.

Amazon is known for its innovative and data-driven approach to human resource
management, including its use of HR forecasting to predict and prepare for future staffing needs.
HR forecasting involves analyzing data on current and projected workforce trends, business
performance, and other relevant factors to make informed decisions about hiring, training, and
retaining employees. Here are some examples of how Amazon uses HR forecasting in its
operations:

Anticipating Peak Season Demand: Amazon's e-commerce business experiences a

significant increase in customer demand during peak seasons such as the holiday shopping
season. To prepare for this, the company uses HR forecasting to predict the number of temporary
workers it will need to hire to support its existing workforce during this time. The company
analyzes past data on peak season demand, employee turnover rates, and other factors to
determine the appropriate number of workers to hire.

Planning for New Business Ventures: Amazon is constantly expanding its business into
new markets and industries, such as cloud computing and grocery delivery. To support these
ventures, the company uses HR forecasting to determine the number and types of employees it
will need to hire, and to identify potential skills gaps in its existing workforce. For example,
when Amazon launched its Amazon Go grocery store chain, it used HR forecasting to determine
the number of store associates, chefs, and other workers it would need to hire to staff its stores.

Identifying Talent Gaps: Amazon uses HR forecasting to identify areas where it may
need to invest in training and development programs to address talent gaps within its existing
workforce. The company analyzes data on employee performance, turnover rates, and other
factors to identify areas where it may be lacking in specific skills or knowledge, and then uses
this information to design targeted training programs.

Predicting Future Business Performance: Amazon uses HR forecasting to predict its

future business performance and to make staffing decisions accordingly. For example, if the
company expects a decline in demand for a particular product or service, it may use HR
forecasting to determine how many employees it will need to lay off or reassign to other roles.

Overall, Amazon's HR forecasting process involves analyzing a wide range of data

sources to make informed decisions about its future staffing needs. By leveraging data in this
way, the company can make strategic HR decisions that align with its overall business goals and
objectives.

Amazon
 REFERENCE

Forecasting: What It Is, How It’s Used in Business and Investing By Alicia Tuovila
Updated September 21, 2022, Reviewed By: Somer Anderson
(https://www.investopedia.com/terms/f/forecasting.asp#:~:text=Forecasting%20is%20a
%20technique%20that,an%20upcoming%20period%20of%20time )

Is Your Core Workforce at the Core of Your Company’s Vision and Culture? May
12, 2021 by Sandra Idjoski https://www.teodesk.com/blog/is-your-core-workforce-at-the-core-
of-your-companys-vision-and-culture/ .