To boost the confidence of its employees, tech giant Amazon has raised its average starting salary in the United States to more than $18 an hour. Moreover, it plans to hire another 1,25,000 warehouse and transportation workers.
According to Reuters, Amazon.com Inc has increased wages from around $17 since May. At some work locations, the world's largest online retailer is providing signing bonuses of $3,000 or triple what the company gave four months back, said Dave Bozeman, vice president of Amazon Delivery Services.
The fatter paycheck displays how big employers are desperate to draw workers into an increasingly tight US labour market. Fewer US residents are seeking jobless claims just as openings have hit a record in the reopening economy.
Bozeman said that the latest compensation increase is a result of fierce competition. A $1 hike on a $17-per-hour pay amounts to approximately a 6 per cent hike.
Being the second-biggest US private employer, the company set a $15 an hour minimum wage three years back in 2018. Recently, Walmart Inc increased average hourly wages by $16.40, while Walgreens Boots Alliance Inc would raise its minimum to $15 next month.
"The labour market is tight. We have seen some of that as the whole industry is witnessing," Bozeman said, as per
Amazon To Maintain $15 An Hour Base Wage
He explained that the company would maintain its $15 an hour base wage, adding that the online retailer will keep giving benefits like funding college tuition for workers and starting pay of $22.50 in some areas.
Amazon is hiring workers to help run 100 logistics facilities launching this month in the US, on top of more than 250 that opened earlier this year. Some workers will help in the company's long-in-the-works effort to roll out one-day delivery for Prime loyalty club members.
"The 1,25,000 (warehouse workers) is really to help us keep up with our growth," said Bozeman, who added that only few jobs were to address attrition. Amazon said it would fill the roles, both full and part-time, as soon as possible but did not offer a timeline.
Recently, Amazon CEO Andy Jassy had said the company would employ for more than 55,000 tech and corporate jobs worldwide.