amazon (NASDAQ:), one of the world's largest e-commerce and cloud computing companies, is recognized for its efficiency and innovation.
However, former employees have shared mixed experiences about what it's like to work for this tech giant, highlighting both the benefits and challenges.
A common positive noted by former employees is amazon's competitive compensation package. The company offers attractive salaries, comprehensive health benefits, and stock options.
John Rossman, a former amazon executive, discusses in his book “The amazon Way: 14 Leadership Principles Behind the World's Most Disruptive Company” how performance-based bonuses and company stock awards can significantly increase overall compensation .
Another attractive factor is the company's commitment to innovation and customer obsession. Many employees find the fast-paced, dynamic work environment intellectually stimulating and encourages rapid skill development and professional growth.
However, the intense work culture at amazon has its drawbacks. 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 hours, with some mentioning a lack of work-life balance.
One notable account comes from Susan Harker, a former top amazon recruiter, who detailed the company's rigorous performance review system and the pressure it puts on employees to consistently deliver results.
The physical and mental strain is particularly evident in amazon fulfillment centers. James Bloodworth, an undercover journalist who worked in an amazon warehouse, documented his experiences in his book “Hired: Six Months Undercover in Low-Wage Britain.”
He described grueling conditions, including long shifts and strict productivity targets, that left many workers exhausted.
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Needham analysts discuss what it's like to work for amazon
During the 19th annual Needham technology and Media Conference earlier this week, former amazon employees shared with analysts their insights into the company's work culture in AWS, gaming, and last-mile logistics.
Below are the top 10 takeaways from their discussions, as described by Needham in his Wednesday note:
1) Culture of debate and commitment: One of the best aspects of working at amazon is its culture of “debate and compromise,” Needham said in his note, citing discussions with former company employees. Employees are encouraged to express their views during meetings, and robust debate is valued. However, once a decision is made, everyone is expected to fully commit to it.
2) Documentation and exhaustion: The requirement for written documents for every initiative is often cited as the worst aspect of working at amazon, Needham said.
“The second worst thing is exhaustion because the culture is hardworking,” they added.
3) Data-driven decisions: amazon's 16 leadership principles influence every decision made within the company. All arguments, whether written or oral, must be supported by data, emphasizing the importance of data-driven decision making.
4) Hands-off management: As long as data shows that a company director is achieving his goals, amazon tends not to intervene, although weekly meetings are typically held to ensure alignment.
5) Day 1 Mindset: amazon promotes a “Day 1” mentality, focusing on innovation and risk-taking. The company hires versatile “athletes” rather than specialists and rotates them between different roles approximately every two years.
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“This keeps ideas fresh and innovative,” Needham noted.
6) Performance improvement plans: It was noted that HR appears to have a flexible quota, with between 3% and 5% of employees included in Performance Improvement Plans (PIPs) at any given time.
7) Compensation structure: amazon's compensation structure has evolved. Previously capped at $165,000, about 50% of total compensation now comes from salary, with the other half in restricted stock units (RSUs) that vest over four years.
“This creates golden handcuffs for FTEs after 4 years of work at AMZN, making it difficult for them to exit AMZN,” the company's analysts said.
8) Risk strategy: Reflecting Jeff Bezos' strategy, amazon prefers to have two different divisions build the same new product rather than not developing the product at all, promoting a high-risk, high-reward approach to business development.
9) High caliber workforce: There was a consensus that amazon employees are generally smarter, more energetic and more competitive compared to those at other companies, Needham's team noted.
10) Customer experience and business approach: Despite their emphasis on customer experience, amazon employees are very business-oriented and focus heavily on the economics of their products.
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