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Despite the increase in the company’s employees’ base pay, AMZN staffers still are grossly underpaid when compared with other tech companies.
Amazon.com Inc (NASDAQ: AMZN), an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence is set to increase its employees’ base pay for its corporate workers to $350,000 from $160,000. As reported by CNBC, citing an internal memo from the company, the increment in pay was initiated in order to increase the company’s competitiveness in attracting and retaining new talents.
The advent of the coronavirus pandemic stirred a lot of irregularities in the economy, and one of the aftermaths is the job strain across the board. The pandemic reshaped the labor market and increased the competitiveness of finding qualified candidates to fill in the limited jobs available. Based on this, the big tech companies are exploring all avenues to err on the side of caution by increasing the incentive packages meant to entice the best staff across the board.
Per the shared memo, the base pay hike is not inclusive of sign-on bonuses, restricted stock options, or other forms of payments.
“This past year has seen a particularly competitive labor market, and in doing a thorough analysis of various options, weighing the economics of our business and the need to remain competitive for attracting and retaining top talent, we decided to make meaningfully bigger increases to our compensation levels than we do in a typical year,” the memo reads.
While Amazon has not yet confirmed the details of the memo, a spokesperson has confirmed the authenticity of the circular, and should the company make good on this alleged report, it will form a major avenue for the company to stump the exodus of its staff as a result of low pay as an earlier Business Insider report detailed.
Amazon (AMZN) to Enact Further Adjustment Beyond Employees’ Pay Hike
Despite the increase in the company’s employees’ base pay, AMZN staffers still are grossly underpaid when compared with other tech companies. According to data from Levels.fyi, the Seattle-based company is not ranked as one of the top 7 companies in the United States that pay its staff considerably well.
The data highlights that a top engineer at Roblox Corp (NYSE: RBLX)) could earn as high as $1 million annually with Meta Platforms Inc (NASDAQ: FB) offering up to $900,000 per staff. Overall, all of the companies, including Amazon, have to offer other perks such as a flexible working model ranging from work from home or a hybrid working mode that will give more job satisfaction.
The decision to increase its employees’ base pay seems to be sitting well with investors as shown in the performance of AMZN stock on Monday, and in the After Hours session. While the stock closed at 0.19% to $3,158.71 for the former, it has inked a slight uptick of 0.15% in the After Hours session.