The company announced a program Monday that will offer employees who quit their jobs $10,000 plus three months’ gross salary to start companies delivering Amazon AMZN, -3.56% packages.
Competition is heated among retailers trying to get purchases to consumers faster than ever. Amazon is battling against stores including Walmart WMT, -1.98% and Target TGT, -3.97% who’ve expanded their delivery options in recent years. Shoppers value shipping options. A 2018 survey found that nine out of 10 shoppers said free shipping was their No. 1 reason for shopping online more often. Walmart was expected to address Amazon’s move into one-day shipping during an earnings call Monday.
The typical Amazon employee made under $30,000 in 2017, the company said in an SEC filing. It has since raised the minimum starting wage for its workers to $15 an hour, or roughly $30,000 a year, assuming a 2,000-hour work year. Amazon has come under fire for how it treats its workers and its negative effects on mom-and-pop brick and mortar retailers. In Monday’s announcement the company highlighted its programs to help workers, including paying 95% of tuition costs for employees who want to educate themselves on “in-demand fields.” Amazon responded to some of those criticisms by raising its minimum employee wage to $15 an hour in 2018. CEO Jeff Bezos recently urged his competitors to follow suit.
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