Amazon has more than doubled its maximum base salary to $ 350,000 for some corporate and tech executives, citing increased competition for tech talent.
According to an internal note, first reported by GeekWire, the tight job market is pushing Amazon to raise company employees’ pay higher and faster than usual.
The company said it was “increasing the overall pay gap for most jobs worldwide and the increases are far more significant than we’ve been in the past,” according to GeekWire.
An Amazon spokeswoman confirmed to CBS MoneyWatch that the note was credible, but declined to comment further.
“This past year has had a very competitive job market and with a thorough analysis of the various options, balancing our business finances and the need to remain competitive in attracting and retaining top talent, we have decided to make significantly larger increases in our earnings. levels of what we do in a typical year, “the note said, according to Geekwire and Bloomberg.
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The change does not mean that all Amazon corporate employees will see an immediate increase. Instead, the move gives Amazon more flexibility to raise the salaries of some employees in a world where employees feel more and more empowered to go elsewhere.
“As compensation is unique to each employee (taking into account their performance, work family and market conditions), these updates to the basic pay ceiling and overall salary range will affect each employee differently,” the company said in note.
Intense competition for technology talent
The coronavirus pandemic and its impact has pushed millions of workers to change jobs or start their own businesses in what was called the “Great resignation”. Last year, 47 million people – almost 30% of the US workforce – quit their jobs, according to the Labor Department.
The competition is particularly fierce for skilled technicians. In December, Apple gave many employees a surprise six-figure bonus – some up to $ 180,000 – to prevent employees from demobilizing Facebook’s parent company Meta, which has hired many Apple employees. Google’s parent company Alphabet said last month it would increase four executives ‘salaries to more than $ 1 million, although it has refused to adjust other employees’ pay for inflation, according to The Verge.
According to the New York Times and Insider, Amazon has long reduced the basic salary of most corporate employees to $ 160,000 – much lower than its tech rivals – and has done the rest with generous share rewards. But as its share price has slowed, Amazon’s relatively low base pay has disappointed many tech workers, according to reports. More than 50 vice presidents resigned last year, with turnover for vice presidents rising to 10%, Insider reported.
Employee bulletin boards on Reddit and Blind show that there is confusion about when and how Amazon wage increases will take effect or whether employees will see their future stock grants reduced to offset higher wages.
Amazon is in a recruitment spree from the pandemic and the e-shopping boom it caused, dramatically increased its revenue and armies in the workplace. Its global workforce now stands at 1.6 million, according to the company’s latest earnings report. Employees in the retail giant warehouse start on average $ 18 per hour, with some getting hiring bonuses of up to $ 3,000.
But rising labor costs are also eating away at the company’s profits. Amazon recently uploaded it price of his Prime subscription at $ 20, to $ 139 a year, partly in response to higher costs.
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