Amazon has announced that it is planning to give over 500,000 workers a pay raise. But the company has not decided anything on increasing the minimum wage of USD 15 per hour. The move comes as the e-commerce giant is looking to attract new workers. The company is planning to hire tens of thousands of people across different departments. These jobs will be in delivery, fulfillment, package sortation, and others. The increase in pay will help the company attract new workers. The increase is expected to be rolled out in mid-May. Amazon executive Darcie Henry said in a blog post that the move will require a total investment of more than USD 1 billion.
Henry said that the pay increase is over and above our already industry-leading starting wage of a minimum of USD 15 per hour. “Also, we invested over USD 2.5 billion in 2020 in additional bonuses and incentives for our front-line teams,” said Henry, who is vice president of people experience and technology, worldwide consumer, at the company. The online shopping giant also said that all the jobs will come with a range of other benefits like medical coverage, financial saving plans, parental leave and most importantly opportunities for career advancement. Henry also emphasized that the company has been ranked one of the best workplaces in the world because it provides ‘a safe and inclusive environment.’
Amazon hired around 500,000 last year. The hiring came despite the coronavirus pandemic which affected one and all. It had to hire people because of the unprecedented increase in online orders during the pandemic. The total global workforce of Amazon has now expanded to more than 1.3 million people. A pay hike by the company will help it attract more workers. This is important in the midst of a tight labour market. This means that a minimum wage of USD 15 means is less effective at recruitment and retention. For the uninitiated, Seattle-based Amazon is America’s second-largest private employer. It is just behind its rival Walmart.