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Glitch at Amazon causes employee raises to be overstated: Report

The glitch created an uncomfortable situation for managers, who had to tell their team members that they will receive lower compensation than was discussed with them initially.

September 23, 2022 / 01:07 PM IST
Representational image.

Representational image.

After reports that Honda overpaid bonuses to employees because of miscalculation, a similar error has come to light at Amazon.

As first reported by Business Insider, a glitch led to the e-commerce giant overstating raises to be given to employees promoted recently.

An internal email viewed by Insider said that the miscalculation occurred because a software took into account Amazon's older (and higher) share prices to calculate the raises.

The glitch created an uncomfortable situation for managers, who had to tell their team members that they will receive lower "promotional cash value" than was initially discussed with them.

The company has resolved the glitch, adding that it was speaking to employees "to ensure they understand their updated compensation", Business Insider reported.

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Amazon has faced senior-level exits because of its lower cash salary cap in comparison with other tech companies, The New York Times reported.

Earlier this year, it nearly doubled the ceiling on base salaries from $160,000 to $3,50,000.

At lowers levels, Amazon's meagre raises have fuelled protests.

In August, 700 workers at an Amazon warehouse in Essex, England held a strike when the company offered to raise their wage by 42 cents an hour, AP reported.

Workers demanded that their salaries be increased by two pounds for any significant difference to income amid increasing inflation.

(With inputs from AP)

Also read: Honda miscalculated employee bonuses. Now it wants the money back

 
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first published: Sep 23, 2022 01:00 pm
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