Amazon pays U.S. warehouse workers at least $ 15 an hour and said in September it raised the average wage for these employees to $ 18 an hour.
Amazon.com Inc. is more than doubling the maximum base salary it pays employees to $ 350,000 from $ 160,000.
“The past year has been a particularly competitive labor market, and by conducting a thorough analysis of various options, weighing the economics of our business and the need to remain competitive to attract and retain top talent, we have decided to significantly larger increases in our remuneration levels than we do in a typical year, ”the company told employees Monday in a memo reviewed by Bloomberg.
Amazon also said it is expanding the remuneration ranges of most positions worldwide and changing the timing of stock awards to match promotions.
Like many large employers, Amazon has struggled lately to hire and retain workers. The company has long relied on stock awards and bets that it could attract workers to take positions, even if the base salary is low. But the share waned in 2021, rising just 2.4% while the S&P 500 rose 27%, and the strategy began to lose its appeal. Media reports indicate that the turnover rate within Amazon has reached crisis levels, and a record 50 vice presidents left last year.
Amazon’s salary increase was reported earlier by Insider.
As of December 31, the e-commerce giant has employed 1.6 million worldwide, including warehouse workers who are paid hourly and office staff who earn annual salaries. Amazon declined to say how many employees will receive the paycheck announced Monday.
Amazon pays warehouse workers at least $ 15 an hour and said in September it raised the average wage for these employees to $ 18 an hour. During the pandemic, the company spent a lot on its logistics operations, hiring hundreds of thousands of people and paying bonuses to new recruits.
Investors carefully watched Amazon’s rising costs and expressed relief when the company reported a strong fourth quarter last week, saying an annual Prime subscription would rise $ 20 to $ 139. Shares rose nearly 14% on Friday and another 1% to $ 3,174.47 at 13:35 on Monday in New York.