Insiders share the best and worst things about working at Amazon By Investing.com.
Amazon (NASDAQ:), one of the world’s largest e-commerce and cloud computing companies, is known for its efficiency and innovation.
But former employees shared mixed experiences about what it’s like to work at the tech giant, highlighting both the benefits and challenges.
A common positive aspect noted by former employees is Amazon’s competitive compensation package. The company offers attractive salaries, comprehensive health benefits, and stock options.
In his book “The Amazon Way: 14 Leadership Princips Behind the World’s Most Disruptive Company,” former Amazon executive John Rossman explains how the company’s performance-based bonuses and stock awards can significantly increase overall compensation.
The company’s focus on innovation and customer obsession is another attractive factor. Many employees find a fast-paced, dynamic work environment to be intellectually stimulating and promote rapid skill development and career growth.
But Amazon’s intense work culture has its downsides. High levels of stress and exhaustion are common complaints. In a detailed 2015 New York Times article, several former employees described the relentless pace and long working hours, and some noted a lack of work-life balance.
In one notable account, Susan Harker, a former top recruiter at Amazon, detailed the company’s rigorous performance review system and the pressure it placed on employees to consistently deliver results.
The physical and mental strain is especially evident in Amazon fulfillment centers. James Bloodworth, an undercover journalist who worked in an Amazon warehouse, chronicled his experience in his book “For Hire: Six Months Undercover in Low-Wage Britain.”
He described harsh conditions that left many workers exhausted, including long shifts and strict productivity targets.
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Needham analysts weigh in on what it’s like to work at Amazon.
At the 19th annual Needham Technology and Media Conference held earlier this week, former Amazon employees shared insights with analysts about the company’s work culture across AWS, video games, and last-mile logistics.
Here are 10 key takeaways from the discussion, as explained by Needham in his Wednesday notes.
One) Culture of discussion and commitment: One of the best things about working at Amazon is its culture of “discussion and commitment,” Needham said, citing discussions with former employees of the company. Employees are encouraged to express their views during meetings and lively discussion is important. But once a decision is made, everyone must be fully committed to it.
2) Documentation and Burnout: The requirement for written documentation for every initiative is often cited as the worst aspect of working at Amazon, Needham said.
“The second worst thing is if the culture is one of hard work and burnout,” they added.
three) Data-driven decision making: Amazon’s 16 leadership principles influence every decision made within the company. All claims, whether written or oral, must be supported by data and emphasize the importance of data-driven decision-making.
4) unattended management: Amazon tends to be relatively hands-off as long as data shows business leaders are achieving their goals, but weekly meetings are typically held to ensure alignment.
5) Day 1 mindset: Amazon promotes a “day one” mentality focused on innovation and risk-taking. The company hires multi-talented “athletes” rather than specialists and rotates them through various roles every two years or so.
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“This keeps our ideas fresh and innovative,” Needham emphasized.
6) Performance Improvement Plan: It turns out that HR has soft quotas where 3-5% of employees are placed on performance improvement plans (PIPs) at any given time.
7) reward structure: Amazon’s compensation structure has evolved. Previously capped at $165,000, approximately 50% of total compensation now comes from salary, with the other half coming from restricted stock units (RSUs) that vest over four years.
“This creates golden handcuffs for FTEs who have been with AMZN for four years, making it difficult to leave AMZN,” the company’s analysts said.
8) risk strategy: Mirroring Jeff Bezos’ strategy, Amazon promotes a high-risk, high-reward business development approach, preferring to build the same new product in two different divisions rather than not pursuing the product at all.
9) excellent manpower: The consensus was that Amazon employees are generally smarter, more energetic, and more competitive than employees at other companies, the Needham team noted.
10) Customer Experience and Business Focus: Despite the emphasis on customer experience, Amazon employees are very business-oriented and focused on the economic aspects of their products.