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Amazon raises salary caps for corporate and tech workers to $350,000

Amazon raises salary caps for corporate and tech workers to $350,000
Amazon raises salary caps for corporate and tech workers to $350,000

Amazon.com, Inc. the renowned American multinational technology and ecommerce company, has reportedly announced that it is effectively doubling the max base salary the company pays its employees to approximately $350,000 from the current $160,000.

Over the past couple of years, the American giant has come under increased pressure over what it pays its workers. The company pays its United States warehouse workers an average of $15 per hour, with it claiming back in September that it had raised the average wages for these workers to approximately $18 per hour.

In a company memo released Monday, Amazon told employees that the past year has witnessed a particularly high competition in the labor market. In an effort to stay competitive when it comes to attracting as well as retaining top talent, the company has decided to introduce some meaningfully bigger hikes to Amazon’s compensation levels than it does in a typical year. The decision has been made after a thorough analysis of numerous options, while weighing the overall economics of the company’s business as well.

The company also stated that it was raising the compensation ranges of a majority of its job roles on a global level. It added that it is also changing the time stocks are awarded to better align them with promotions.

Recently, like a number of other big employers, Amazon has been struggling to hire and retain employees. The firm has long depended on stock awards for hiring and retention, betting that it can convince potential employees to take up the job offer even if the total base pay being offered is low.

However, after the stock languished through the course of 2021, rising just 2.4% while S&P 500 went up 27%, the strategy started to lose its luster. Reliable reports indicate, the company’s turnover rate has approached crisis levels, with a record 50 VPs leaving the firm last year.

Source credit: https://www.aljazeera.com/economy/2022/2/7/amazon-hikes-salary-caps-to-350000-for-corporate-tech-workers

About the author

Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.