Stock Groups

Amazon boosts max base pay for corporate workers to $350,000

[ad_1]

Amazon Headquarters is virtually empty in Seattle on March 10, 2020. Amazon suggested that all workers in the Seattle office work remotely to combat the coronavirus, which left much downtown almost empty.

John Moore | Getty Images

AmazonIt is raising its maximum base pay for corporate employees, citing the strong labor market as one factor behind this change.

The company sent an internal memo Monday to all employees stating that the base salary for all white-collar workers will now be $350,000. That’s a big increase on its $160,000 previous maximum.

Base pay does not represent all of the employees’ compensation. Restricted stock units that are typically granted in small increments over many years and other cash such as bonuses, do not count towards this figure. The compensation of this company has always been heavily based on stock.

According to the memo which was originally reported by, “This year saw a very competitive labor market. We did a detailed analysis of all options and considered the economics and need to retain top talent. Therefore, we made meaningfully larger increases in our compensation levels than in normal years.” GeekWire.

Amazon spokeswoman confirmed that the memo was authentic, but did not comment further.

According to the memo, Amazon stated that it is increasing the base salary and increasing the overall range of compensation for all jobs worldwide.

This change comes as Amazon employees are increasingly critical of the company’s below-market compensation. Employees are increasingly leaving Amazon because of their base pay. Business InsiderLast month’s report, which was based on internal surveys.

The coronavirus epidemic has given workers more leverage and allowed them to ask for better pay and benefits. This makes labor markets fiercer than ever. Flexibility is becoming increasingly popular among companies, including remote or hybrid work. This has led to Amazon and other tech companies offering flexible work arrangements. to admit thatFailing to provide these benefits can negatively impact their ability to retain or attract talent.

According to Levels.fyi (which tracks the pay of the tech sector), Amazon didn’t rank in the top seven companies for engineering salary last year. Roblox’s top engineers could earn more than $1,000,000, and Facebook would pay over $900,000. However, these numbers include compensation for all types of compensation.

WATCH: How the U.S. economy can survive a hybrid workforce

[ad_2]