How to Bargain For Your Amazon Job Offer: A Guide To Amazon Salary Negotiation
It can be scary to haggle over a job offer at a rapidly expanding digital giant like Amazon, but it's necessary if you want to be paid more. In fact, when our clients used The Salary Negotiator's tried-and-true method to negotiate their Amazon job offer, 100% of them ended up with higher income.
Even so, since Amazon lists "frugality" as one of their leadership principles, many people assume that the salary negotiation will be challenging. However, since "having backbone" is also a leadership principle, negotiating your Amazon job offer can be a great opportunity to demonstrate this leadership quality—especially if you know how to negotiate your Amazon job offer effectively. Amazon is a leader in providing competitive pay to software engineers, data scientists, technical product managers, solution architects, and many business-based roles; therefore, they may be more willing to negotiate in that area even though they may not have the same competitive benefits and perks as the other FAANG companies.
We set down our approach in this blog post so you can confidently negotiate your Amazon job offer and make sure you don't miss out on any pay.
Do you wish to avoid negotiating on your own? To assist you in navigating the Amazon job offer negotiating process, we have provided extra tools.
You may ensure success in your Amazon pay negotiation by learning how to negotiate an Amazon offer from our Amazon pay Negotiation Coaching.
To acquire guidance, phone scripts, and email templates to get you ready for an Amazon job offer negotiation, check out our Salary Negotiation Courses and Templates.
Contents Table of
- Recognizing the Pay-Related Elements in an Amazon Job Offer
- Five Essential Steps to Successfully Negotiate an Amazon Job Offer: Avoid These Negotiation Errors When Asking About Salary at Amazon
- The Final Word
Recognizing the Pay-Related Elements in an Amazon Job Offer
While Amazon offers competitive salary in the tech industry, its perks and compensation package is a little different from those of the other FAANG corporations. To position oneself for success in negotiations, it is essential to comprehend those elements before you begin. Why? Because you should haggle over every aspect of your package, not just your pay at Amazon. Knowing the Amazon compensation structure will also enable you to determine your overall remuneration, which is useful knowledge to have before beginning the wage negotiating process.
Apart from a basic wage, Amazon offers various useful benefits like an initial equity grant, an Amazon sign-on bonus in the first and second year, and many more. Be aware that, unlike most other IT businesses, Amazon does not offer an annual performance bonus. Here is an illustration of what the initial offer might include in terms of overall remuneration for an Amazon Solution Architect (Level 5 - L5):
Amazon Base Salary
Your base wage, or the guaranteed fixed compensation you receive for the work you perform, is the first item in your job offer from Amazon or AWS. Unless you receive a raise in your position, a promotion, or a merit increase, your base pay will remain constant. Prior to raising the maximum on base pay to $350,000, Amazon only offered base wages of $160,000 annually. This move was made to maintain competitiveness in the digital industry.
Every role type and level at Amazon has a designated pay band with a minimum and maximum amount. The compensation range for an Amazon technical program manager, for instance, would be different from that of an Amazon finance analyst or an Amazon product manager.
This holds true for all of Amazon's divisions, and if you accept a job offer in AWS, you will see a greater Amazon compensation structure. For instance, at the same level, the base pay range for an Amazon Senior Software Engineer would be different from that of an AWS Senior Data Scientist or an AWS Senior Solution Architect.
It's doubtful that the base income in your original offer will be at the top of the pay band, but it's still vital to negotiate a higher base salary because it's typically the hardest part to convince Amazon to change.
FIRST EQUITY PACKAGE ON AMAZON
A key component of Amazon's whole compensation concept is equity compensation, which is completely adjustable. In fact, after we helped them navigate their wage negotiations with Amazon, that's where some of our clients have seen the biggest pay increases.
At Amazon, new employees will receive an initial equity grant in their job offers, which comes in the form of restricted stock units (RSUs). These RSUs represent actual ownership of stock (i.e., you will receive shares of AMZN stock) that will be transferred to you when the stock vest. However, your RSUs at Amazon will have a much different vesting schedule compared to most companies with equity in their offers.
The vesting schedule for Amazon RSUs is four years long. On your first anniversary, you will vest 5%, on your second anniversary, 15%, and then every six months after that, 40% in year four and 40% in year three, until your fourth anniversary, at which point you will vest 20%. Compared to Apple, Meta, Google, Microsoft, and other major tech companies, which give similar portions of your share vesting annually, this vesting plan is different. But Amazon does make up for this shortfall by offering guaranteed pay in the first and second year form of a sign-on bonus, which we'll talk about in the next section.
Even though Amazon RSUs can be a very lucrative kind of compensation, you will forfeit that equity if you leave the company before the stock vests in accordance with the Amazon RSU vesting schedule. Making this choice becomes more difficult when you consider that at Amazon, 80% of the equity will not vest until years three and four.
BONUS FOR AMAZON SIGN-ON
Amazon handles its sign-on bonuses in an odd way. In order to entice you to join and make up for any lost bonuses or unvested equity you might have to give up at your existing business, the majority of corporations offer sign-on bonuses once. However, employees at Amazon are given an Amazon signing bonus in their first and second year of employment. This serves as a stopgap to increase your overall pay during the first two years, with the majority of your equity being paid out in years three and four.
If your sign-on bonus is less than $25,000, it is paid out in one lump sum at the start of each of your first two years; if it is more than $25,000, as many are, it is paid out monthly along with your base pay. The Amazon signing bonus is taxed like your base salary but has no conditions attached if it is distributed equally over the course of a year. You "earn" the bonus each month.
The good news is that Amazon is typically the most accommodating when it comes to pay negotiations, and your hiring bonus is completely negotiable.
Amazon Annual Merit Boost
As was previously mentioned, Amazon does not provide an annual incentive that takes into account both individual and corporate performance. Rather, they provide a merit raise every year that is determined by your performance rating. Historically, these merit increases have been quite moderate, but in 2022 they were comparatively high to adjust for inflation. At Amazon, merit increases usually take effect in April of each year.
It is crucial to negotiate your basic wage before beginning the work at Amazon, as your merit raises will be calculated as a percentage of your base pay. This is why we don't include it in our total compensation calculation, along with the fact that it's typically merely an annual adjustment to keep up with inflation.
Annual Stock Refresh on Amazon
Most Amazon employees receive annual equity increases, or more stock. This is based on your performance rating and is comparable to a merit increase. If the stock worth is less than anticipated, it's typically utilized as a technique to bridge your entire salary following your first two years at Amazon. The same might apply if your present equity has increased, though, as this would raise your overall remuneration and possibly result in a smaller yearly stock refresh at Amazon.
Similar to the merit component, this is a significant part of your total compensation; however, since it is dependent on your performance and future total compensation, it is difficult to factor into your total compensation and compare across multiple offers. For this reason, we do not include it in our total compensation calculation.
AMAZON BENEFITS AND PERKS
Compared to most companies, Amazon offers some great benefits and perks to its employees, but they do lack the perks you may see at rival FAANG companies. They offer a generous health insurance plan among other standard benefits, but there’s a non-competitive 401k company match (only 2%), no discounted employee stock purchase plan (ESPP), and not even a free Amazon Prime membership. You do get a 10% discount on Amazon Prime purchases of up to $1,000 per year ($100 value) but this falls significantly below the product discounts offered by Apple and Microsoft.
Even while Amazon's benefits are less generous than those of its rival FAANG companies, it nevertheless offers extremely competitive compensation and is renowned for advancing employees' careers simply by having the name "Amazon" on their résumé.
Five Crucial Steps to Discuss a Job Offer with Amazon
It's crucial to comprehend the procedure before you start negotiating because discussing an Amazon job offer necessitates a slightly different strategy than negotiating a Meta employment offer or an Apple job offer.
Above all, do not begin the negotiation process until you have received an offer. You don't want to risk losing out on a solid job offer by starting negotiations with Amazon too soon because they have a reputation of asking probing questions about wage expectations. As soon as the hiring team has decided that you are the best person for the job and has extended an offer, you will always be in a stronger position.
Based on our extensive expertise assisting hundreds of clients with their wage negotiations, we have outlined five essential steps below that will guide you through your Amazon and AWS salary negotiation. Although our procedures are covered here, we still advise you to engage with an Amazon wage Negotiation Coach to obtain all of our tactics and achieve a successful outcome in your wage negotiation.
1) COMPREHEND WHAT YOUR AMAZON JOB OFFER CONTAINS
As we previously stated, the first step before trying to bargain for a higher wage is to comprehend the complete remuneration in your Amazon job offer. However, as we already completed the aforementioned task, you can cross this item off the list. However, you may always get in touch with our staff if you have any specific inquiries regarding the details of your employment offer.
2) ASK THE RIGHT QUESTIONS TO DO A COMPLETE DUE DILIGENCE ON YOUR AMAZON JOB OFFER.
If you just remember one thing from this post, it should be this: before you begin bargaining, and especially before you agree, be sure you understand your offer. In addition to demonstrating your appreciation for their time and offer, asking insightful questions enables you to obtain further information that is essential for creating a strong Amazon counteroffer and, eventually, increasing your pay. Ask them anyway, even if you believe you already know the answers! It never hurts to double check, and if you need assistance figuring out what inquiries to make regarding your Amazon offer letter, you can just consult our list of Strategic Questions to Build Negotiation Leverage.
Although requesting additional time to process the offer is common, our clients have experienced more.
Although requesting additional time to process the offer is common, our clients have experienced more.
3) TO DETERMINE WHAT YOUR COMPENSATION SHOULD LOOK LIKE, RESEARCH THE COMPENSATION RANGES.
It should go without saying that digital corporations, like Amazon, are notorious for leveraging data to inform their judgments. To determine the pay range for the position, the strength of your offer, and the appropriate amount to request depending on your particular role and its location, it is crucial to collect compensation data.
Although websites like Payscale, Glassdoor, and Comparably can offer useful information on wages and other aspects of compensation, it's important to remember that not all aspects of compensation may be fully reflected in these publicly available pay ranges, particularly considering how much income varies from year to year. You can use our job offer negotiation course to learn how to investigate salary by following an actual Amazon example, or you can use our Total salary Research Comparison Tool to assist you with.
Although websites like Payscale, Glassdoor, and Comparably can offer useful information on wages and other aspects of compensation, it's important to remember that not all aspects of compensation may be fully reflected in these publicly available pay ranges, particularly considering how much income varies from year to year. You can use our job offer negotiation course to learn how to investigate salary by following an actual Amazon example, or you can use our Total salary Research Comparison Tool to assist you with.
4) CONTACT AMAZON RECRUITER WITH A COUNTEROFFER
You are prepared to send over a wage negotiation counter once you have finished the first three steps of negotiation preparation. This is a thrilling stage where you may speak up for yourself and demonstrate your value to the group.
In this phase, you will politely submit your Amazon counteroffer (such as our drafts here) to the recruiter, citing your study and clearly outlining the advantages above other offers and/or your existing position. Although you can do this over the phone, we highly advise emailing this to ensure you have a written copy of everything. Additionally, it guarantees that the recruiting team receives an accurate sharing of your Amazon counteroffer from the recruiter. Be forceful, but don't forget to act politely and professionally at all times. Despite the fact that you were given an.
In this phase, you will politely submit your Amazon counteroffer (such as our drafts here) to the recruiter, citing your study and clearly outlining the advantages above other offers and/or your existing position. Although you can do this over the phone, we highly advise emailing this to ensure you have a written copy of everything. Additionally, it guarantees that the recruiting team receives an accurate sharing of your Amazon counteroffer from the recruiter. Be forceful, but don't forget to act politely and professionally at all times. Despite the fact that you were given an.
5) RESOLVE ANY RECRUITER OBJECTIONS AND ACCEPT THE ROLE WITH THE KNOWLEDGE THAT YOU HAVE ACHIEVED THE BEST OFFER
With Amazon, the recruiter will often respond with a new offer after just one counteroffer. Congratulations if that's the situation! However, the recruiter will typically get back to you with an explanation of why the hiring team is unable to make any changes. If that occurs, you should interpret their "NO" as a challenge that you must meet rather than as a "NO" that you are powerless to respond to.
In the event that they decline your Amazon counteroffer, politely acknowledge their limitations while restating your request and your need for them to discuss it with the team—even if they state that their team will simply decline (exactly like this). Regardless of the recruiter's justification, adopt this strategy. You might need to.
In the event that they decline your Amazon counteroffer, politely acknowledge their limitations while restating your request and your need for them to discuss it with the team—even if they state that their team will simply decline (exactly like this). Regardless of the recruiter's justification, adopt this strategy. You might need to.
Avoid These Negotiation Errors When haggling over your Amazon salary
In order to receive a competitive job offer from Amazon, you should be careful to avoid a few pay negotiating blunders as you proceed with the five procedures listed above.
DO NOT SHARE YOUR SALARY EXPECTATIONS WITH AMAZON PRIOR TO GETTING A JOB OFFER.
Based on our expertise negotiating job offers, recruiters at Amazon will put a lot of effort into learning about your desired compensation. However, disclosing your wage expectations could make it more difficult for you to get a reasonable offer, so try to steer clear of it by using language like this. Recruiters at Amazon may inform you that if they are aware of your salary expectations, they will work to negotiate the greatest compensation for you and your team. Although it seems like a reasonable request, keep in mind that they work for Amazon, not you.
They are more inclined to give you the lower remuneration, for instance, if you discuss it with them rather than what they could provide. Conversely, if you specify a greater amount than they are willing to give, there's a possibility that they
NEVER HESITATE TO NEGOTIATE YOUR AMAZON SALARY
Fearful of losing the offer, a lot of people feel anxious or overawed when discussing a job offer with Amazon. But in the hundreds of successful wage negotiations we've facilitated on behalf of Amazon, we have never witnessed Amazon withhold a job offer from an applicant simply for attempting to negotiate. It is customary to bargain for your Amazon compensation, regardless of your position level—whether you are an individual contributor, director, engineering manager, or vice president. Never let hearsay or fallacies surrounding pay negotiations discourage you from standing up for what you deserve.
AFTER DOING YOUR RESEARCH, BE REALISTIC.
Amazon offers excellent remuneration, but it's crucial to have a realistic mindset and only demand what the Amazon team can really afford to pay you. You can determine what compensation is appropriate for your function by investigating what Amazon pays for it and by understanding your total salary at Amazon.
The Final Word
Everyone is welcome to discuss their job offer with Amazon; we have personally witnessed how successful wage negotiations enable individuals to obtain more attractive benefits packages and boost their total income over the course of their careers. We're sure The Salary Negotiator approach will enable you to achieve the same results.
Work with our Amazon Salary Negotiation Coaches if you would like individualized coaching on how to negotiate your Amazon employment offer.
For individuals who prefer to learn at their own pace and acquire the skills and knowledge necessary to negotiate their pay, we also offer our courses on How to Negotiate Your Job Offer and How to Negotiate Your Current Salary, as well as Salary Negotiation Templates. You'll be ready for everything with the help of tools for job offer negotiations and downloadable email templates.
No comments: