Amazon (NASDAQ:), one of the world's largest e-commerce and cloud computing companies, is known for its efficiency and innovation.
However, former employees shared mixed experiences about what it's like to work at the tech giant, highlighting the benefits and challenges.
One common positive aspect noted by former employees is the competitive compensation package offered by Amazon. The company offers attractive salaries, comprehensive health benefits, and stock options.
In his book The Amazon Way: 14 Leadership Principles Behind the World's Most Disruptive Company, former Amazon CEO John Rossman discusses how bonuses and stock awards based on a company's performance can significantly boost total compensation.
The company's focus on innovation and customer obsession is another attractive factor. Many employees find the fast-paced, dynamic work environment intellectually stimulating, promoting rapid skill development and career growth.
However, Amazon's intense work culture has its drawbacks. High levels of stress and fatigue are common complaints. In a detailed 2015 New York Times article, several former employees described the relentless pace and long hours, with some citing a lack of work-life balance.
One notable account is from Susan Harker, a former senior Amazon recruiter, who detailed the company's rigorous performance review system and the pressure it placed on employees to consistently deliver results.
Physical and mental stress is especially evident in Amazon's fulfillment centers. James Bloodworth, an undercover journalist who worked in an Amazon warehouse, documented his experiences in his book Employee: Six Months Undercover in Low-Pay Britain.
He described harsh conditions, including long shifts and strict productivity targets, that left many workers exhausted.
Remove ads
.
Needham analysts weigh in on what it's like to work at Amazon
During the 19th annual Needham Technology and Media Conference held earlier this week, former Amazon employees shared their insights into the company's work culture across AWS, video games and last-mile logistics with analysts.
Here are the 10 most important points from their discussions, as Needham laid out in his memo on Wednesday:
1) Culture of discussion and commitment: One of the best aspects of working at Amazon is its culture of “discussion and commitment,” Needham said in her memo, citing discussions with former company employees. Employees are encouraged to express their opinions during meetings, and robust debate is valued. However, once a decision is made, everyone is expected to fully adhere to it.
2) Documentation and combustion: Needham noted that the written documentation requirements for each initiative are often cited as the worst aspect of working at Amazon.
“The second worst thing is burnout because the culture is working so hard,” they added.
3) Data-driven decisions: Amazon's 16 leadership principles influence every decision made within the company. All arguments, whether written or oral, should be supported by data, emphasizing the importance of data-based decision making.
4) Laissez-faire management: As long as the data shows the company's president is achieving his goals, Amazon tends to be relatively hands-off, though weekly meetings are typically held to ensure alignment.
5) Day 1 mentality: Amazon promotes a “day one” mentality, focusing on innovation and risk-taking. The company hires multi-talented “athletes” rather than specialists and rotates them through different roles every two years or so.
Remove ads
.
“This keeps the ideas fresh and innovative,” Needham stressed.
6) Performance improvement plans: It has been observed that HR seems to have a soft quota, with 3% to 5% of employees being placed on Performance Improvement Plans (PIPs) at any given time.
7) Compensation structure: Amazon's compensation structure has evolved. Previously, the cap was $165,000, and 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 full-time workers after 4 years of working at AMZN, making it difficult to leave AMZN,” the company's analysts said.
8) Risk strategy: Reflecting Jeff Bezos' strategy, Amazon would rather have two different divisions building the same new product than not pursue the product at all, promoting a high-risk, high-reward business development approach.
9) Highly qualified workforceThe Needham team noted that there is a consensus that Amazon employees are generally smarter, more energetic, and more competitive than those at other companies.
10) Customer experience and business focus: Despite their focus on the customer experience, Amazon employees are very business focused, and place great emphasis on the economic aspects of their products.
