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12/08/2021

Amazon Has Become the Wage and Benefits Standard

In a tight labor market, Amazon, the world’s largest online retailer, is setting the standards when it comes to wages and benefits.
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amazon packaging

That’s according to The Wall Street Journal, which profiled workers who have migrated from other companies to work for Amazon in search of higher pay. Offering slightly higher wages, Amazon has forced many small businesses to increase their wages. This chain of events has led experts to view Amazon as the “de facto wage-and-benefit setter for a large pool of low-skilled workers,” WSJ reported. 

Amazon is the nation’s second-largest employer, behind Walmart, which is also the world’s largest retailer. The report comes as the retail industry faced an even tougher labor market during the start of the holiday season as 20,000 retail jobs were lost during November. 

Amazon’s promises of large sign-on bonuses and higher pay may help the e-commerce retailer retain and recruit for open roles. The company has been able to leverage its massive scale to poach employees from smaller companies in many areas. The company has roughly 1.4 million employees as of September this year.