Amazon pays U.S. warehouse workers at least $ 15 an hour, and said in September it had raised the average salary of those workers to $ 18 an hour.
Amazon.com Inc. doubles the maximum basic salary it pays its employees to $ 350,000 from $ 160,000.
“Over the past year, the labor market has been particularly competitive, and by conducting an in-depth analysis of various options, weighing the economy of our business and the need to remain competitive to attract and retain the best talent, we decided to make significantly larger increases. levels of compensation than we do in a typical year, “the company told employees on Monday in a note reviewed by Bloomberg.
Amazon has also said it is increasing the scope of compensation for most jobs worldwide and changing the time for awarding stocks to align with promotions.
Like many large employers, Amazon has recently struggled to hire and retain workers. The company has long relied on stock rewards, betting that it can entice workers to take positions, even if the basic salary is low. But stocks sank in 2021, gaining just 2.4%, while the S&P 500 jumped 27% and the strategy began to lose its appeal. Media reports show that Amazon’s turnover has reached crisis levels, with a record 50 vice presidents leaving last year.
Amazon’s salary increase was announced earlier by Insider.
The e-commerce giant has hired 1.6 million worldwide as of December 31, including hourly paid warehouse workers and office staff who earn annual salaries. Amazon declined to say how many employees will receive the increased pay, announced Monday.
Amazon pays warehouse workers at least $ 15 an hour, and in September said it had raised the average salary of those workers to $ 18 an hour. During the pandemic, the company spent heavily on its logistics operation, hiring hundreds of thousands of people and paying bonuses to new recruits.
Investors closely watched Amazon’s rising costs and expressed relief when the company reported a strong fourth quarter last week and said its annual subscription to Prime would rise by $ 20 to $ 139. Shares jumped nearly 14% on Friday and rose another 1% to $ 3,174.47 at 1:35 p.m. on Monday in New York.