It may help in attracting more workers.
Amazon plans to hire thousands of jobs. That’s why it is moving its yearly fall pay for workers in the customer, delivery, fulfillment, and package and fulfillment departments.
The company plans to introduce the increase in mid-May.
However, it will only increase the hourly pay of its workers between $0.50 and $3.
Help in Incentivizing Hiring for Thousands of Operations Jobs in the US
The coronavirus has prompted Amazon to go on a hiring spree to ensure it can keep up with increasing online orders.
Even though the US economy started to reopen, some businesses couldn’t find workers.
Business owners believe that the expanded jobless benefits can be a reason it’s difficult to find workers.
But critics said that employers should raise the wages of their workers. By upping the wages, it may also help in attracting workers.
And this is what Amazon is doing.
In the US, Amazon is the second-largest employer. It has over 800,000 employees across the country.
The wage increase will be given to over 500,000 workers. They get to receive at least 50 cents and $3 per hour. Amazon is said to invest over $1 billion in incremental pay for these workers.
The jobs that it’s offering now will have a range of benefits, such as dental and vision coverage, as well as medical and parental leave.
Amazon is also offering methods to help its workers to safe for their future and some opportunities to help them advance their careers.
In 2018, it has already raised its minimum wage to $15 per hour. But it was only applicable to its employees in the US. This was the result of the pressure from worker advocacy groups and politicians.
Amazon said that it’s supporting the Raise the Wage Act that increases hourly wage for 32 million people who are pumping money into local businesses.
The Raise the Wage Act will have a positive impact on millions of Americans. It’s expected to increase the federal minimum wage to $15 an hour by 2025.
The company’s starting pay will be $15 an hour. The increase is part of its argument against unionization. Union organizers lost the election.
They challenged some 500 ballots. Unfortunately, the vote lead held by the company is higher than the number of challenged ballots.
Even though that company has won this time, it should still be concerned about future efforts to unionize.
The company has expanded its workforce to over 1.3 million people last year when it hired 500,000 new workers to manage the increasing demand for online orders.
However, the company didn’t state that it will raise its minimum wage to $15. If it would, then it would rival Costco that has already increased its starting rate to $16 an hour in February.
Amazon can afford to increase wages for its employees. Last year, it earned $21 billion in profit. Then, its market capitalization was $1.74.
But experts are saying that $15 is just the minimum. It’s not the highest.