Amazon said on Tuesday it is boosting its average starting wage to $18 an hour for 125,000 new hires in the U.S. in jobs in transportation and fulfillment. Some locations are also offering sign-on bonuses of up to $3,000.
The new jobs may pay up to $22.50 an hour in some locations, Amazon said. The roles also provide full-time workers with health, vision and dental insurance, as well as a 401(k) and up to 20 weeks paid parental leave. The retailer earlier this month said it will pay full college tuition for its 750,000 U.S. hourly employees starting in January.
The wage hike comes amid struggles by many employers across the nation to hire new workers due to labor shortages caused by the pandemic. Some businesses have blamed COVID-19 unemployment benefits for the dearth of qualified workers, but millions of workers say they continue to sit on the sidelines because of virus fears, as well as a shortage of child care and remote school for younger children.
The average starting wage of $18 an hour will be effective in regions where labor markets are tight, while the company will continue to pay a minimum wage of $15 an hour, said Dave Bozeman, vice president of delivery services at Amazon.
"With the pandemic, we have seen it tight in certain areas rather than others — we have to make sure we have a competitive wage in those areas," Bozeman said, adding that regions including parts of Kentucky, Iowa and Ohio are experiencing tight labor markets.
Other companies have also boosted wages and benefits to lure workers from the sidelines. While some businesses have pointed the finger at pandemic unemployment benefits — which ended on Labor Day — the nation's labor force still hasn't rebounded to its pre-pandemic size. There are about 3 million fewer workers in the labor force today than there were prior to the pandemic.
Bozeman said the company's announcement that its hiring 125,000 workers isn't part of its seasonal hiring push. The company plans to announce those hirings later this year, he added.
Amazon said it has opened more than 250 warehouses in 2021 and plans to open 100 new buildings this month. Amazon said people can learn more about the jobs at this site.
Download our Free App
For Breaking News & Analysis Download the Free CBS News app
The typical Amazon employee makes less than you think
Just because you work at Amazon doesn't mean you're guaranteed a six-figure paycheck.
Amazon(AMZN) disclosed in a filing Wednesday that the median pay for its employees was just $28,446 in 2017. Put another way: half of Amazon's employees earned less than that amount.
The underwhelming figure was made public as part of a new rule put into effect this year by the Securities and Exchange Commission requiring companies to disclose the pay ratio between their CEOs and overall employees.
Jeff Bezos, Amazon's CEO and the world's richest man, received a total compensation of about $1.68 million last year -- or 59 times the median Amazon employee compensation.
Call it a tale of two Amazons: those who work in technical roles and those who work in warehouses and grocery stores.
Amazon said in a statement provided to CNN that the median pay includes "part-time, full-time, and seasonal jobs in over 50 countries."
"In the U.S., the average hourly wage for a full-time associate in our fulfillment centers, including cash, stock, and incentive bonuses, is over $15/hour before overtime," the company said.
Amazon also stressed additional benefits like health plans, job training and "generous parental leave."
Related: Amazon reveals it has more than 100 million Prime members
Amazon now has more than half a million employees worldwide, thanks in large part to a heavy investment in fulfillment centers and its $13.7 billion acquisition of Whole Foods, which had about 87,000 employees when the deal was announced.
Bezos said in a letter to shareholders Wednesday that Amazon created more than 130,000 jobs last year alone, not counting acquisitions. Those new jobs "cover a wide range of professions, from artificial intelligence scientists to packaging specialists to fulfillment center associates," he wrote.
But the artificial intelligence scientists are bound to make substantially more than the fulfillment center workers.
The average salary for software engineers at Amazon is north of $100,000, according to data from PayScale, a salary comparison service.
By comparison, a full-time warehouse associate at one of Amazon's fulfillment centers in New Jersey could make as much as $13.85 per hour, according to a current job posting. That would come out to about the same as last year's median pay.
CNNMoney (New York) First published April 19, 2018: 11:46 AM ET
Average Salary for Amazon.com Inc Employees
Amazon.com Inc Reviews
Learning and Development3.5
Warehouse Worker in Middletown:
Pros: I appreciate that I am able to utilize paid and unpaid time to take time off from the job. The different benefits that are given to us are amazing and I could have never gotten these with another company at this entry level.
Cons: I honestly hate the long hours pulled each day. Many have agreed that we would have appreciated a five day 8 1/2 work scheduled compared to our 4 day 10 1/2 work schedule. Last it's very repetitive and wish the type of work done each day could change to give the job more variety.
Solutions Architect in New York:
Pros: The smartest people solving problems with the best technology.
Cons: Fast growth leads to ambiguous knowledge of company and internal politics.
Amazon.com Inc provides a few pension and welfare benefits. Countless companies in the United States, like Amazon.com Inc, finance group health plans for their employees, through which companies typically cover a significant …Read more
Retirement & Financial Benefits
Health & Insurance Benefits
View more benefits
About Amazon.com Inc
Address: 410 Terry Avenue North Seattle, Washington 98109
Industries: Electronic Shopping and Mail-Order Houses, Retail
Year Established: 1994
Number of Employees: 24,300
Years of Experience
This data is based on 4,432 survey responses.
Avg. Salary: $60k - $157k
Avg. Salary: $55k - $138k
This data is based on 3,140 survey responses. Learn more about the gender pay gap.
Pay ranges for employees at Amazon.com Inc by degree.
Popular Locations for Amazon.com Inc
- Seattle, Washington
- New York, New York
- San Francisco, California
- Dallas, Texas
- Nashville, Tennessee
- Los Angeles, California
- Phoenix, Arizona
- Boston, Massachusetts
- Herndon, Virginia
- Sunnyvale, California
View more locations
Amazon.com Inc Job Listings
Companies in the same industry as Amazon.com Inc, ranked by salary.
Compare the work satisfaction, stress and gender at Amazon.com Inc with similar employers
Amazon hikes average U.S. starting pay to $18, hires for 125,000 jobs
Sept 14 (Reuters) - Amazon.com Inc (AMZN.O) has increased its average starting wage in the United States to more than $18 an hour and plans to hire another 125,000 warehouse and transportation workers, an executive told Reuters.
The world’s largest online retailer has raised pay from an average of around $17 since May. In some locations, the company is giving signing bonuses of $3,000, said Dave Bozeman, vice president of Amazon Delivery Services, or triple what the company offered four months ago.
The fatter paycheck, which Reuters was first to report, shows how big employers are desperate to draw workers in an increasingly tight U.S. labor market. Fewer Americans are seeking jobless claims just as openings have hit a record in the reopening economy. read more
Bozeman attributed Amazon's latest compensation increase to fierce competition. Amazon did not give exact figures, but a $1 raise on a $17-per-hour wage would amount to a hike of about 6%.
Amazon, now the second-biggest U.S. private employer, set a $15 an hour minimum wage in 2018. Walmart Inc (WMT.N)recently touted average hourly wages of $16.40, while Walgreens Boots Alliance Inc (WBA.O) said it would raise its minimum to $15 in October. read more
"It's a tight labor market, and we've seen some of that as the entire industry is seeing," said Bozeman, who spoke in an interview at a delivery station in Tukwila, Washington.
He said Amazon would maintain its $15 an hour base pay. Benefits like funding college tuition for workers and starting wages as high as $22.50 in some areas distinguished the online retailer from peers, he said.
A worker assembles a box for delivery at the Amazon fulfillment center in Baltimore, Maryland, U.S., April 30, 2019. REUTERS/Clodagh Kilcoyne/File Photo
Amazon's news, after logistics hiring it announced in May and corporate recruiting it touted this month, follows a stretch of increased scrutiny of its labor practices. A failed effort by some staff in Alabama this year to organize put on display Amazon's demanding warehouse work and aggressive anti-union stance. After that battle, then-CEO Jeff Bezos said the company needed a better vision for employees.
Andy Jassy, who succeeded Bezos, said in a CNBC interview that aired on Tuesday that the United States ought to raise the federal minimum wage.
Amazon is hiring workers to help run 100 logistics facilities launching this month in the United States, on top of more than 250 that opened earlier this year. Some workers will aid in Amazon's long-in-the-works effort to roll out one-day delivery for Prime loyalty club members.
"The 125,000 (warehouse workers) is really to help us keep up with our growth," said Bozeman, who added that only a minority of jobs were to address attrition. Amazon said it would fill the roles, which are full- and part-time, as quickly as possible but did not offer a timeline.
The company's external delivery service partners aim to hire another 50,000 workers by year-end, too, Amazon said.
Nicole Bilich, a human resources manager, said competitive pay has brought in applicants for her Stockton, California, warehouse, which Amazon plans to launch in October. But hiring 2,200 people in three to four months is no simple matter.
"The biggest challenge we have is really just the numbers of people we need," she said.
Reporting by Jeffrey Dastin in Palo Alto, Calif. Editing by Peter Henderson, Cynthia Osterman and Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.
Pay salary amazon
Amazon reveals how much it paid its median employee last year: $29,007
- The median Amazon worker made $29,007 in 2020, a $159 increase from the year prior.
- The CEO-to-worker pay ratio is 58:1 at Amazon, which is lower than Walmart, CVS, and others.
- Amazon raised its minimum wage in the US to $15 per hour in 2018.
The median Amazon worker made $29,007 in 2020, according to the company's annual proxy statement.
The median pay, calculated using the compensation of all full- and part-time permanent and temporary employees worldwide except the CEO, was a $159 increase from the year prior.
Bezos earned 58 times that in 2020, with an annual compensation of $1,681,840, the same as the year prior. In other words, he makes more in one week than the median Amazon worker.
The company noted other major corporations have even higher CEO-to-worker pay ratios, with Walmart's at 983:1, and CVS at 434:1, according to Payscale.com.
But that's just Bezos' salary. The Amazon CEO's net worth ballooned by tens of billions of dollars during the COVID-19 pandemic as the company's shares rallied amid the rise in online shopping. Bezos owns about 10% of Amazon stock or 53 million shares.
The CEO, who is stepping down from his role later this year, has a nearly $200 billion fortune, making him the wealthiest person in the world. He's rivaled by Tesla CEO Elon Musk, whose worth has passed him a couple times this year, according to Fortune. But Bezos remains at the top.
Read more: Amazon logistics salaries revealed: Here's what workers bulking out Amazon's supply chain make, from entry-level analysts to senior management
As for Amazon's US full-time employees, they saw more of a wage boost in 2020.
The company reported a median annual compensation of $37,930, a boost of $1,290, resulting from "special bonuses and incentives awarded to our teams in 2020 in recognition of their role serving communities during the COVID-19 pandemic," Amazon said in its proxy.
Four months into the pandemic last June, Amazon dropped its $2-per-hour hazard-pay bump for 250,000 warehouse workers as the company announced its highest sales growth in three years. Amazon said the boost was always temporary.
Full-time US workers also got an approximate $1,500 boost in 2019 from the year prior after the e-commerce giant raised its US minimum wage at the end of 2018 to $15 an hour. The company had faced criticism for the wage gap between workers and C-suite executives, CNBC reported at the time.
In his final letter to shareholders as CEO, Bezos wrote that, "Two and a half years ago, when we set a $15 minimum wage for our hourly employees, we did so because we wanted to lead on wages – not just run with the pack – and because we believed it was the right thing to do." The company previously called out other big employers, including Walmart, for not raising its wages to $15.
Bezos said in the letter the company is aiming to be "Earth's best employer."
The company has received criticism over its working conditions, especially for drivers, who have reported urinating in water bottles and defecating in bags when on the clock.
However, two workers at the Bessemer, Alabama warehouse, which voted against forming a union earlier this month, said they didn't want a union because of the good pay and benefits at the company.
She asked in response how she spent a week ago, visiting Natasha and Denis. She didnt, but said that she didnt get enough sleep. What did Natasha and Denis do there. What was Denis doing with Natasha, but she was screaming like that.
You will also be interested:
- Job 12 12 meaning
- Hp elitebook 840 accessories
- Bruin born bruin bred
- Oil pastel landscape painting
- Zelda collection wii u
- Single floating wall shelf
The glass pouring both herself and me. A little confused, frightened eyes looked at me, I touched my lips to hers and suddenly felt how she touched my chest and twitched again. Tearing away from her lips, I. Looked at her breasts and realized that she was not lying, her nipples really tightened and became like stones.
Kissing her body, I drank spilled champagne from her, sinking lower and lower.