Statewide minimum wage raises are leading the way for changes to workplace compensation, but businesses don’t have to wait for regulatory changes to announce their own updates. Amazon is reportedly increasing the starting hourly wage for its full-time core operations employees in the U.S., bringing the number up to $20. Amazon frequently finds itself in the news for its labor standards and the working conditions faced by employees, rarely in a favorable light. Despite often finding itself on the wrong side of public sentiment, the company does make the occasional update to policy in favor of the workforce. The $20 minimum hourly wage for some of Amazon’s employees is one such example.
Amazon is increasing the minimum starting hourly wage for full-time core operations employees on Sept. 27. (Image: Pexels)
Amazon Boosts the Starting Hourly Wage for its Full-Time Core Operations Employees in the U.S.
E-commerce giant Amazon employs one of the biggest fleets of workers globally, and the standards set by the organization have the potential to change thousands of lives, not just of its own employees but those of workers in competitor organizations that have to match it to keep up. Keeping this in mind, Amazon has revealed plans to raise the minimum starting wage for core full-time employees in the U.S. to $20.
In addition to this, eligible employees could see a wage raise of $1 per hour. According to Amazon, the pay bump could raise average pay for some employees to $24 per hour, with average total compensation reaching $32 per hour when the value of the offered benefits is included.
The wage raise aside, Amazon has also reportedly introduced a banking assistance program, Day 1 Financial. This will give employees a membership to the First Tech Federal Credit Union and allow them and their families to benefit from high-quality, low-cost banking services. The convenience of this benefit includes $0 overdraft or monthly maintenance fees, no credit history required for a checking or savings account, multiple banking services, and surcharge-free ATMs, etc. The company did not elaborate on eligibility and which of its employees would be able to capitalize on this employee benefit and to what extent.
Amazon Employees Also Get to Enjoy Additional Whole Foods Discounts
Amazon acquired Whole Foods nearly a decade ago for $13.7 billion, and it has been a critical segment of its business model and operation ever since. As part of the latest update to employee benefits, Amazon employees will be able to see an uncapped 10% off on eligible fresh groceries and everyday essentials on the Amazon and Whole Foods websites, as well as a 20% discount if they go to Whole Foods Market and shop in store.
Many major businesses offer such discounts to their employees, and this matters most for groceries and everyday essentials, whose rising prices have hit consumers hard. Walmart, for example, expanded its worker discount to a wide range of products last year, changing it from a seasonal benefit to one that is available year-round. Many analysts predict that employees will become more reserved with their spending in the coming months over the fears and experiences around rising inflation.
Amazon’s Decision to Spruce Up Its Employee Benefits Is a Welcome One
As has been stated, Amazon has recently landed itself in hot water on multiple fronts, facing lawsuits on pregnancy discrimination, violation of genetic privacy, an overly punitive absence policy, and even matters of employee poaching. Some might suggest that such confrontation is inevitable for a company that operates at such a scale, while others might disagree. Layoffs and internal disruptions have similarly led to a degree of friction within the workplace, but the company has also made yearly investments in employee benefits to reshape its relationship with its workforce.
Just last year, Amazon offered a pay raise to workers in the U.S. fulfillment and transportation division, with average compensation going up to $23 per hour. The company also lowered healthcare fees with reduced-cost health care plans beginning at $5 per week with $5 copays. This only covers a section of the benefits offered to employees. With the recent announcement on the changes to starting wages, Amazon Senior Vice President of Worldwide Operations, Udit Madan, explained the decision to focus on benefits for employees.
“I often hear that they appreciate a good paycheck, but also really value the full range of benefits that we offer—which together help them support their families and grow in the long run. So, each year, we look at that full picture—pay, benefits, and how we can continue to support them and their families through many different parts of their lives,” he explained. The decision to structure benefits on the basis of what the need of the hour is for employees is something that we could benefit from seeing more of, shifting the attention away from solely higher pay to a higher share of benefits and support tools from employers.
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