According to Yahoo News Network reported on the 7th, the increasingly severe labor market competition in the United States has intensified the talent shortage of large enterprises, and the e-commerce giant Amazon has sharply doubled the maximum basic annual salary of some employees to 350,000 US dollars, aiming to help recruit top talents and retain existing employees.
Source: Yahoo News Network
Amazon announced the plan to employees in a post on its internal company website Monday morning.
"The labor market has been extremely competitive over the past year, and we decided to significantly increase our compensation when it came time to thoroughly analyze the options, weigh the economics of our business, and the need to stay competitive to attract and retain top talent." The company said in an internal post.
Based on this, Amazon will raise the basic annual salary cap for all white-collar employees to $350,000, a sharp increase from the previous $160,000.
Base pay is only a portion of Amazon's total employee compensation, and other compensation includes employee restricted stock and cash incentives, such as signing bonuses.
The move is expected to bring Amazon's base pay more in line with other big tech companies, including Google, Facebook, Apple and Microsoft. Historically, Amazon has kept its base salary below that of many of its peers.
Amazon has long rewarded employees for distributing stock, betting that even if the base salary is low, the stock reward will help the company attract talent. But with Amazon's stock price flat in 2021, up just 2.4 percent, far less than the 27 percent gain of the S&P 500, the strategy began to lose traction. Amazon's internal turnover rate has reportedly reached crisis levels, with a record 50 vice presidents leaving last year.
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