Amazon is known for offering competitive compensation and benefits to its employees. As one of the largest and most successful companies in the world, Amazon aims to attract and retain top talent by providing a wide range of perks and programs for employees.
Health Insurance
One of the most valuable benefits Amazon offers is health insurance coverage. Full-time Amazon employees are eligible for medical, dental, and vision insurance. Amazon offers several plan options through major insurance providers like Aetna and Premera. Employees can choose between PPO and HMO plans and can select coverage tiers based on their needs, choosing between individual, individual plus spouse/partner, individual plus child(ren), or family coverage. Amazon also offers domestic partner benefits to provide coverage for unmarried partners.
Amazon provides insurance options that cover most typical healthcare expenses, including doctor visits, hospitalization, prescriptions, and more. Preventative care like routine checkups is covered at no additional cost. Amazon also provides vision insurance plans that cover eye exams and prescription eyewear and dental plans that cover exams, cleanings, fillings, and other basic dental care. For added convenience, Amazon provides tools to compare plan options and calculate costs.
401(k) Retirement Plan
In addition to health insurance, Amazon employees are eligible to enroll in a 401(k) retirement plan through Vanguard. This plan allows employees to save and invest for retirement by setting aside pre-tax income. Amazon provides a 50% match on employee contributions up to 4% of compensation. The match helps employees grow their nest egg faster through these employer contributions.
Amazon’s 401(k) plan offers diverse investment options that allow employees to choose funds based on their preferred level of risk, expected returns, and target retirement date. The plan offers target date funds, equity/stock funds, bond funds, balanced funds, money market funds, and more. By spreading contributions across different fund types, employees can build a balanced and diversified retirement portfolio.
The 401(k) match and tax-deferred growth on investments make this plan a significant benefit. Employees can watch their savings accumulate over time to build financial security for retirement.
Stock Options
One perk that is less common among large companies is Amazon’s stock option program. Full-time Amazon employees receive stock options as part of their compensation package. Employees are granted an initial stock option award after 12 months of employment and then receive regular stock option grants after that.
Stock options give employees the right to buy company stock at a discounted price (the strike price). The discount is typically 15% below the share price at the time of grant. If Amazon’s share price rises above the strike price, employees can exercise their options to buy shares and pocket the difference. For example, if an employee is granted options at a $100 strike price and the shares rise to $150, they could acquire shares at $100 each and sell at $150 for a $50 per share gain.
The stock option program aligns employee interests with shareholders and gives employees an ownership stake in Amazon’s success. It also provides significant financial upside if the shares increase substantially in value. Even part-time Amazon fulfillment employees receive stock option grants.
Career Growth Opportunities
Working at Amazon also provides opportunities for career development and advancement. With businesses in diverse areas like ecommerce, cloud computing, artificial intelligence, and more, Amazon offers roles across dozens of job functions. Employees have the chance to gain experience in cutting-edge technology and business operations.
Amazon employs over 1.5 million people and is still experiencing rapid growth, creating ample opportunities for promotion. Employees receive regular performance reviews and feedback to help them set goals and develop professionally. Hard-working and ambitious employees can move up the ranks into leadership roles relatively quickly at Amazon.
In addition to on-the-job development, Amazon offers training programs, mentorship opportunities, and tuition reimbursement benefits. These tools support employees at all levels in building new skills. Amazon’s promotion-from-within culture means this training translates into career advancement for many employees.
Paid Time Off
Work-life balance is important for physical and mental wellbeing, and Amazon offers paid time off so employees can unplug. Full-time employees earn up to 20 days of paid vacation per year and receive 10 paid sick days annually as well. Part-time employees also accrue paid time off on a prorated basis.
Other paid leave options include:
- Paid family leave – Employees get up to 20 weeks off for family needs like caring for a new child or sick relative.
- Bereavement leave – Up to 5 days off for immediate family deaths and 1 day off for extended family.
- Jury duty leave – Employees receive paid time off for required jury duty service.
- Military leave – Time off for required military duties and training.
- Voting leave – Amazon allows workers time off to participate in elections.
Amazon also observes all major U.S. holidays and closes operations to provide paid time off to employees on those days. These holidays include New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas.
The combination of vacation, sick time, and ample other leave makes work-life balance achievable for Amazon employees. They can take time to recharge without sacrificing pay.
Tuition Reimbursement
Amazon provides tuition reimbursement benefits to encourage continuous learning. After one year of employment, full-time operations employees can receive up to $12,000 in annual reimbursements for qualified education expenses. Part-time employees also receive prorated tuition assistance.
Employees can take courses that help develop skills applicable to their current role or that prepare them for advancement opportunities at Amazon. Fields of study that qualify for reimbursement include computer science and programming, project management, data analytics, business and sales, and more. Amazon pays tuition reimbursement upon successful course completion.
In addition to outside education, Amazon offers development programs like Career Choice that provide free skills training in high-demand fields. Employees can learn skills that lead to careers in healthcare, transportation, IT, and skilled trades.
Between tuition reimbursement, internal training, and other upskilling benefits, Amazon heavily promotes employee education and development.
Employee Discounts
Working for Amazon also comes with some nice discounts and special offers for employees:
- Amazon products – Employees receive discounts on Amazon-branded devices and products.
- Groceries – Amazon Prime members get discounts on select groceries at Whole Foods.
- Internet – Employees can bundle phone plans with discounted home internet through Verizon Fios.
- Mortgages – Special rates and reduced fees on loans through Amazon’s partner lender.
- Hotels – Employees receive discounted rates on hotels and rental cars for personal travel.
These savings opportunities let employees enjoy the perks and convenience of Amazon’s services, even when off the clock. The discounts provide additional financial value from working at Amazon.
On-Site Amenities
Amazon offices and facilities offer convenience through on-site amenities and services:
- Food services – Many locations have cafes, mini-markets, vending options, and free snacks.
- Wellness centers – Some sites provide gyms, fitness classes, and wellbeing resources.
- Childcare – Back-up childcare programs help working parents.
- Commuting programs – Options may include shuttle buses, public transit passes, or commuter benefits funds.
- Game rooms – Fun recreational spaces for taking breaks.
These types of amenities allow employees to take care of personal needs without leaving work. They make for a convenient and enjoyable work experience.
Flexible Working Arrangements
Amazon also offers flexible working arrangements to help employees achieve work-life balance:
- Flex schedules – Employees can shift start/end times within a range of core hours.
- Job sharing – Two employees share and split one full-time position.
- Part-time – Reduced schedule options allow a better work-life fit.
- Remote work – Some roles allow employees to work from home full-time or a few days a week.
- Leave of absence – Employees can take extended time off and return to their job afterwards.
Managers work with employees to accommodate flexible scheduling based on business needs and personal circumstances. These arrangements empower employees to meet responsibilities outside of work.
Employee Affinity Groups
Amazon offers a strong sense of community through its employee affinity groups. These include:
- Amazon People with Disabilities Network
- Amazon Black Employee Network
- Amazon Women in Engineering
- Amazon Warriors (veterans group)
- Amazon PRIDE (LGBTQ+ employees)
- Families@Amazon (working parents)
- Amazon Muslim Employees Network
These groups connect employees with shared backgrounds or interests. They provide professional development, networking, mentoring, and social events. Affinity groups boost inclusion and help employees support each other personally and succeed professionally.
Career Choice Program
We’ve already covered some of the education benefits Amazon offers, but one program deserves special mention – Career Choice provides full tuition coverage for employees to train for in-demand, well-paying jobs in high-growth fields. Fields include healthcare, transportation, information technology, skilled trades, and more. This allows employees to transition into careers in promising industries without taking on education debt.
Some examples of career paths employees could pursue through the program include:
- Computer technician
- Commercial truck driver
- Medical assistant
- Dental hygienist
- Pharmacy technician
- Electrician
- Plumber
- Paramedic
Amazon partners with education providers like universities, community colleges, and vocational schools to administer training. Employees receive advising to help select a field of interest and map out a training plan. Amazon pays the full cost of tuition, books, and fees with no lifetime maximum.
This program’s investment in employees’ futures is transformational. It empowers people to develop skills to advance their careers and earning potential.
Conclusion
When you look at the full range of Amazon’s benefits and perks, their employees receive quite an extensive and valuable compensation package beyond just salaries and wages. The company invests heavily in employees’ wellbeing, development, and financial security now and in the future.
Key highlights include:
- Health insurance coverage with competitive premiums and choice of plan options
- 401(k) plan with 50% match on contributions up to 4% of pay
- Company stock awards and options
- Paid time off including vacation, sick time, and holidays
- Education benefits like tuition reimbursement and career training programs
- Employee affinity groups and networking resources
- Perks like discounts and on-site amenities
- Advancement opportunities in a rapidly growing company
With these advantages, Amazon offers an appealing employment package that helps attract and keep top talent. Employees gain financial security, develop professionally, and gain equity in the company’s success. While quick delivery and cloud technology are what Amazon is known for, its employee benefits are another reason it remains an employer of choice.