A look at part of Amazon’s $1.2 billion on-the-job training investment

Amazon has pledged to spend $1.2 billion to provide free skills training to about 300,000 Amazon employees.

It’s day two of Amazon’s Prime Day, and plenty of shoppers are on the hunt for some good deals.

As folks click “add to cart” from the comfort of their own homes, let’s take a look at a development for the workers who help courier thousands of goods across the country (often at great personal risk). These jobs are sometimes seen as just that — jobs, rather than careers.

But Amazon has pledged to spend $1.2 billion to provide free skills training to about 300,000 Amazon employees. Part of that is an apprenticeship program for running and fixing robots at company warehouses, with hopes of future career advancement for participants.

To learn more, “Marketplace Morning Report” host David Brancaccio spoke with J. Ofori Agboka, Amazon’s vice president of People Experience and Technology. The following is an edited transcript of their conversation.

David Brancaccio: Let’s say you’ve got a job picking in an Amazon warehouse, but you would like more for yourself. Tell me about this program.

J. Ofori Agboka: I’m actually right now at one of our newest fulfillment centers that’s opening up where, you pointed out, people will be sorting and picking and stowing, but they’re gonna be working alongside some amazing robots. And so our apprenticeship program is a three-month in-class, technical learning, online learning, experiential learning, and then … hours of on-the-job training to get you upskilled, knowledgeable and comfortable with working with and around the machinery to keep these robots moving, working properly, and coming on to the next generation.

Brancaccio: Well, that’s great. So tell me about upskilling. A current Amazon employee can apply for this apprenticeship training?

Agboka: We’ve committed $1.2 billion in free education and skills-based learning for our employees. So, if you have the aptitude to learn, you want to try something new. You don’t have to come with a technical background. We want to make it easy for people to learn.

Brancaccio: I see, and you are still paid by Amazon during the training program? You don’t have to take time off for the classwork?

Agboka: Yes, you’re paid. So you don’t have to take time off. This is a paid program for our employees to get the skills and development they need to make sure they’re fully equipped in that Mechatronics robotics field.

Brancaccio: If you successfully complete the program, you can move into a job that represents a raise from what you might have been getting before the program.

Agboka: Absolutely. Our employees who have graduated this have seen increases in pay of up to 40%. This new technology has created job opportunities for roles that we didn’t know previously should exist, but now we know they should exist.

Brancaccio: I know Amazon has struggled with high turnover rates for employees. So there might also be, you know, along with the possibility that employees take the Amazon training and then move on to a different company with the new skills, there must be a hope that you’ll also keep a bunch.

Agboka: Well, definitely. We plan with opportunity in mind that, “Hey, these are jobs that will also benefit Amazon.” As a 2023, we have 100% conversion rate into job placement after the program completion. So we’re very proud of what we’re doing there before.