Amazon sends an email to its staff informing them that it miscalculated its compensation
Company employees at Amazon received emails about promotions and raises. Then they got emails saying the raises weren’t quite what they thought.
A one-time bonus that was part of their compensation package had been miscalculated due to a software error and would be lower than they had been told, according to an email sent Thursday and viewed by Initiated.
The premiums had originally been calculated using older, higher stock prices, according to Initiatedand approximately 40% of employees promoted this quarter were affected by the error.
“We have identified and immediately corrected an issue with compensation communications for certain newly promoted employees,” an Amazon spokesperson told Fortune. We are working with employees to ensure they understand their updated compensation.
Compensation has been a major issue in the tech sector this year, as a strong labor market intensifies competition for workers.
Earlier this year, Amazon announced plans to double its maximum base salary to $350,000 to attract talent, which Google employees cited after the company’s annual internal survey revealed their dissatisfaction with with regard to salary.
This year’s “Googlegeist” survey, conducted in January, found that only 53% of Google employees considered their compensation to be competitive, down 5% from the previous year, and 56% found their compensation ” just and fair”, down 8%.
While corporate employees continue to make big leaps in compensation, the same cannot be said for the company’s thousands of hourly workers. Earlier this month, CEO Andy Jassy said a $25 minimum wage was unlikely.
“There’s a limit to the economics you can afford and have a business that can be profitable,” he said at Vox Media’s Code 2022 conference in Beverly Hills. During the pandemic, the company increased its average hourly wage salary at $18/hour.
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