Amazon backtracks on pay raises, blames software bug

Amazon wants an overhaul of employee pay increases, saying a software bug led to artificially high numbers.

Amazon has been struggling with employee satisfaction for some time, with its attrition rate for its most desirable employees doubling in recent years. The company raised its maximum base salary to $350,000 in February in a bid to satisfy its employees, but it may have wiped out any goodwill generated.

Unfortunately for the company, its latest raise did not go smoothly, according Business Intern. Amazon’s software obviously used an older, higher stock price to calculate the bonuses, which caused many of the company’s employees to be told they would receive more pay than expected. The problem particularly affected recently promoted employees.

Rather than honor the original amount, Amazon sent an email to officials informing them that the packages would be smaller than promised. After seeing both the email and an internal trouble ticket, Initiated says up to 40% of employees promoted this quarter were “affected by this issue.”

Needless to say, Amazon’s handling of the debacle is not going well, with employees accusing the company of nickel-and-dimming them. One employee said Amazon was “removing something that made us feel a bit whole.”

Amazon representative Brad Glasser said Initiated the company “identified and immediately corrected an issue with compensation communications for certain newly promoted employees.”

“We are working with employees to make sure they understand their updated compensation,” Glasser added.

It’s a safe bet that Amazon’s employee morale problems are just beginning.