Amazon has received a huge boom in popularity with its online sales service. Their boom is due to some of the core competencies that have made them ahead of the pack. First is the algorithm of the website. Through your searches and past orders, the Amazon website will recommend items that you probably were already interested in. Making it only one click away from making that purchase. The second is quick delivery times. We live in a time where 2-day shipping seems like the norm and we can thank Amazon for this privilege. This has given them a near-monopoly in their current market. Their workforce is massive and there is a wide variation in the job positions. That is why the company benefits more from a job-based pay structure.
To recap a job-based pay structure is building the pay based on factors of the job. Factors that are determined by the responsibilities of the position and sometimes even the working conditions of the job. These include factors such as experience, amount of lifting required, and critical thinking. Having job-based pay helps keep the pay consistent and intuitive. And most companies do use a job-based pay structure. If we take a very common job in the company such as warehouse workers, we can look into the factors such as heavy lifting and somewhat dangerous working conditions and base our compensation on these. Additionally, Amazon would benefit by doing some research on what other companies are paying their employees that are doing the same job, providing that extra bit of consistency.
Overall, Amazon is a worldwide company that brings in products ranging from A to Z to their customers in a timely manner, by using a combination of an algorithm and careful placement in their fulfillment centers. And like most companies, they benefit from utilizing a job-based pay structure.
