+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Amazon is getting rid of a pay practice many employees hated as part of its $15-an-hour wage increase

Oct 2, 2018, 20:23 IST

Getty/Rick T. Wilking

Advertisement
  • Amazon announced on Tuesday it would be increasing its pay to $15 an hour for all US employees.
  • As part of the overhaul, fulfillment-center workers' pay will no longer be tied to incentives targets.
  • Some employees have criticized the targets as unfair, with some adding that the targets cause intense pressure to meet goals.
  • A company spokesperson confirmed to Business Insider on Tuesday that fulfillment-center employees will still have metrics to meet, but they will no longer be tied to pay.

Amazon warehouse workers are getting a raise, but that's not all.

The e-commerce giant is not only raising wages to at $15 an hour for all US workers, it's also getting rid of a practice that many employees hated.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

As part of the wage overhaul, Amazon says it is also phasing out pay incentives for fulfillment-center workers.

"We are phasing out the incentive pay component and the $15 will be a simple minimum with no targets required," Amazon wrote in a blog post announcing the change.

Advertisement

The incentives have been criticized by employees as too strict, Business Insider's Shona Gosh reported earlier this year. Former employees said they would sometimes find human waste in trash cans because workers felt they could not take the time to go to the bathroom. Employees said that Amazon's focus on efficiency made them feel like "robots" that were only expected to do one thing, and to do it quickly.

"The metrics are brutally aggressive, and most of my colleagues are in a state of constant anxiety that we could be fired at any moment for not meeting metrics," one current US employee told Business Insider.

Amazon said in a response to the report that it provides adequate breaks to employees and never timed employees' bathroom trips.

A company spokesperson confirmed to Business Insider on Tuesday that fulfillment-center employees will still have metrics to meet, but they will no longer be tied to pay.

Still, removing the system's ties to wages could prove that Amazon is getting more sensitive to the criticism it is getting and wants to make a change.

Advertisement

NOW WATCH: We had millennials try Cracker Barrel for the first time

Next Article