Amazon said Thursday it will offer to pay 100% of college tuition for its 750,000 employees per hour in the U.S.
The e-commerce giant follows the leadership of other large American companies that offer benefits such as educational benefits or more pay to attract workers into a shrinking job market.
Starting in January 2022, Amazon said it will cover the cost of college tuition, fees and textbooks for hourly employees in its network of operations after 90 days of employment. It will also begin covering high school programs, GED certificates and English as a second language certificates for employees. Operations workers include employees of Amazon’s large department store network and distribution centers.
The benefit will apply to hundreds of educational institutions across the country, Amazon said. Previously, Amazon offered to pay 95% of tuition, fees and textbooks for hourly contributors through its professional choice program.
Rival retailers, including Walmart and Target, have also bolstered their educational benefits in recent months. Aimed in August, a program was launched that covers the cost of associate and undergraduate degrees at selected schools. Walmart in July said it would pay 100% of college tuition and book costs for Walmart and Sam’s Club associates.
As the job market has become more competitive, Amazon is increasing incentives to attract workers. In some parts of the country, Amazon offers sign-up bonuses for new employees worth up to $ 3,000.
Amazon chief financial officer Brian Olsavsky told analysts and investors after the company’s second-quarter earnings report in July that the competitive job market entails higher costs.
“We’re spending a lot of money on signings and incentives, and while we have very good staffing levels, it comes at no cost,” Olsavsky said. “It’s a very competitive job market.”
Amazon has been hiring since the start of the pandemic and reached 500,000 employees by 2020.
In May, Amazon said it would hire 750,000 workers across the entire warehouse and supply network in the United States and Canada. Jobs offer a starting salary of $ 17 per hour, reflecting recent wage increases, which increased pay by between 50 cents and $ 3 per hour for more than half a million of its U.S. operations employees.