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Subscribe to RSSIt’s an odd twist for an employer to offer you tuition money for an education that will lead to a job with another company. But that’s just what Amazon.com has proposed to its employees.
This week, the online retail behemoth announced a new program that would give its full-time hourly employees a maximum of $2,000 a year toward tuition and textbooks. The one catch: workers can’t just decide to go to culinary school.
Amazon.com has chosen only certain fields that are in high demand based on government labor statistics such as engineering, information technology, mechanical and electrical trades, healthcare, construction, transportation, and accounting.
The types of jobs an employee could end up with are those that require technical and vocational training, not bachelors or master’s degrees, and go beyond the walls of Amazon.com including aircraft mechanics, dental hygienists, and nurses, the company said in a statement.
“At Amazon, we like to pioneer, we like to invent, and we're not willing to do things the normal way if we can figure out a better way,” said Jeff Bezos, founder and CEO of Amazon.com.. “It can be difficult in this economy to have the flexibility and financial resources to teach yourself new skills.”
Bezos statement, which was posted on the front of the site when customers go to the main page this week and includes a salutation to “Dear Customers”, acknowledged that some Amazon workers at its distribution facilities may want to remain with the company for the long haul, while others may be looking for other careers.
“Amazon wants to make it easier for employees to make that choice and pursue their aspirations,” the company stated.
It’s a kind gesture to employees for a company that came under fire last year for workplace conditions at one of its warehouses in Pennsylvania.
The customer letter includes a line about how the company’s innovation “has driven improved reliability, accuracy, and speed of delivery, as well as productivity and safety.” Company spokesman Ty Rogers said Amazon’s recent move was not a response to last year's safety issues.
"A long-term, engaged, positive workforce is critical to delivering the high level of customer service that people expect from us," he noted.
No matter what the reason, some workforce development experts saw this as a smart management move.
“When I recommend tuition assistance programs to clients, I tell them you’re may be developing these people right out of your employ, and that’s okay,” said Susan Heathfield, About.com’s human resources expert. “You want the smartest, most developing people working for your company you can find. If you limit what you’re going to pay for in terms of career development you have disgruntled employees.”
She said the types of work that warehouse employees do is hard and many of those workers many not have longevity at Amazon as it is. “In a way,” she continued, Amazon is “investing in people to retain them but they love them enough to be thinking about what this person is going to do in their future.”
Clearly, it will go a long way in making some hourly workers feel better about their employer. Providing career opportunities is a key driver of employee engagement, according to a study released by human resources company Aon Hewitt last month.
One problem with Amazon’s offer is it may not be quite enough for some employees. According to Glassdoor.com warehouse hourly workers make about $12 an hour, and at that rate, saving for tuition today may be tough for some. While Amazon is offering $2,000 maximum a year to employees, the cost of a two-year aircraft mechanic’s degree can run anywhere from $8,000 to $30,000 depending on the school; and nursing two-year associates degrees from nearly $5,000 to over $20,000, according to Educaton.Costhelper.com.
“In many ways its just a gesture because it just not a lot of tuition. Many companies I know provide assistance that goes far beyond that,” Heathfield maintained. “But I’m not going to put Amazon down because I’m so happy to see this.”
“It’s a minimal contribution toward career development of people in jobs that don’t have career horizons,” she added.
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Class act, Amazon! Kudos.
“It’s a minimal contribution toward career development of people in jobs that don’t have career horizons”
One problem with Amazon’s offer is it may not be quite enough for some employees. According to Glassdoor.com warehouse hourly workers make about $12 an hour, and at that rate, saving for tuition today may be tough for some. While Amazon is offering $2,000 maximum a year to employees, the cost of a two-year aircraft mechanic’s degree can run anywhere from $8,000 to $30,000 depending on the school; and nursing two-year associates degrees from nearly $5,000 to over $20,000.
Did you even read the article? $2,000 is a drop in the bucket for these career fields. These fields are also classroom intensive learning areas and not over the internet. Doesn't leave much time to shuck boxes for Amazon......
Well Medio, yes, I read the article - thank you very much. The $2,000 is a start and, at most public universities/junior college, can get you through a few classes - then the next year they can get another $2,000 - did YOU read the article? Yes, it may take some time and yes, they may have to use other methods of funding - such as student loans or scholarships - but it can be done - as millions of students do it every year.
So, if they go for the $8,000 aircraft mechanic's training they could go for $2,000 for fall semester and qualify again for an additional $2,000 for winter semester. This would only leave a $4,000 balance - which can be taken through a student loan, made in payments to the school (if they allow it), or use what they should get back for a tax return to pay for more of their schooling. There are ways, sweetheart.
I presume the 8000-20000 is for a full time load. Most working people could never do that anyway. 2000 is probably close to correct for what they can actually accomplish while working full time. Though I have to confess, I think it should be 2K a semester.
Good for Amazon. It's a start and it's more than Congress wants to do to help people get ahead or just about anyone else in corporate america.
It's a start my hat is off to Amazon for doing this. You will not see any of the big three auto makers doing this when automation replaces a worker they are shown the door. Unlike Japan who will take that displaced worker and retrain them in another part of the company that's why Japan has had some of the lowest unemployment numbers over the years. The funny thing is it was one american who went to Japan and showed them how to manager their manufacturing business. US companies laugh him out of the country. he showed them the way out of the ashes of war.
@maga +1
Yup.... Amazon wants to make sure the people with drive (who are going to want higher salaries) get out as soon as they can so they can still pay peanuts. Of course $2,000 doesn't even cover the cost of parking for going to class!
Kevin,
Amazon doesn't have to offer this incentive...so let's give them some slack on not being able to offer thousands more. It is a good start towards a college education at a local community college and from there, if they qualify under several categories, they may be eligible for a scholarship - or - take a student loan out as so many others have had to.
It will be a tax write off for Amazon I am sure !!!
They are not just being "kind". PLEASE !!!
no they're not just being kind, they are trying to get some "goodwill" advertising with out paying much for it.
btw; why should Amazon tell us that a career in the culinary arts is no good??
They aren't. They are just telling you they aren't willing to fund it. They are trying to get people up and out into careers that will give them a place to go and way to advance themselves. Careers that have a future and that we need in this country.
Who are you people? A big company like Amazon offers "free money" to their rank and file hourly workers and it's all about the glass being not full.
Get a life. This is a big opportunity for many people working for 11.00 an hour.
What a bunch of whiners.
They are offering $2000 to FULL TIME employees?
That must mean part time employees will replace the full time workers.
The more I learn about Amazon the LESS I like it.
I will NEVER shop there again. It is ALL about greed and corporate profit.
don't let the door hit you on the way out.
shill much?
A+ amazon. Thanks for standing out & not trying to keep lower employees at the bottom indefinitely. You will gain far more in the future if you promote & support people in what they do. Corpotare america needs to observe & stop using the recession to tie folks into dead-end jobs. Job well done!
I applaude you Amazon, too bad Wal*Mart can't do the same for it's dead end jobs.
Such negative comments. Amazon doesn't have to do diddly-squat. $12/hr? That's $4.75/hr better than Walmart. Tax deduction? Yes, that and salaries and medical benefits are considered operating expenses. One pays taxes on profits after the fact. Good PR? Sure - and some free PR from commentators here telling they pay $12/hr vs. Walmart's $7.25/hr. Tuition at $8000 and they're only offering $2000? They're actually offering $2000 per year so it's really $4000 - 1/2 of the tuition. Take it or leave it, no one is begging you. Walmart offers $0.00 towards tuition and a 10% store discount - but NOT on food.
I don't know about Amazon. I've been a loyal customer since they started, but I'm sorry, $2,000 won't hardly pay for a semester at a state school where I live, even going to school part time. When these workers make low wages, and I know most of them do, they'll have a tough time matching what Amazon "gives" them.
The young execs at Amazon were taught that people are therefore supposed to work in rainforest-like conditions.
I believe that Amazon has more than one reason for offering this program. They certainly gain good press for offering it, and many employees may benefit, but ask yourselves why people would choose to train for other careers.
Why? Well, in my life, I've been most interested in changing careers when the prospects of my current job did not look so good (i.e., they looked like a dead end). Who might find themselves in such a position? People who have risen as high as they can in a given job progression--the same folks who typically will be among the higher-paid members of any company's workforce.
Perhaps Amazon's alterior motive is to get some employees to train for other careers so that they may replace them with lower-cost new hires. I'm guessing they'll save far more than a couple thousand dollars per year by doing so.
Perhaps their motives are pure and I'm just a bit cynical. That would simply make this scenario an interesting coincidence.
This is good for the employees, look at it this way they help some college kid, thats working and going to college. He graduates and gets a good job elsewhere and the next kid comes along and does the same. This will help more kids or single parents get educated and off welfare. I don't see that many other places of employment, offering this to employees, while paying a decent wage. $2000.00 is better than $0.00.
In my book, anytime an employer offers tuition assistance, it's a plus. So what if it's "only" $2k a year? It's $2k more than what you started with. Amazon doesn't have to offer this. And I'm guessing that only the really motivated employees are going to jump on this offer. The rest will just whine about how much they didn't get.
Many companies have cut back on tuition assistance programs in recent years. In many cases because these programs were abused for stuff like super-expensive MBA priograms. I worked in several companies that offered good to great programs and relatively few people took advantage of them. I saw some senior staff (with long-graduated from kids) not take advantage of the program because they had to use their own money upfront and get reimbursed based on a grade.
As multi-year Amazon Prime member, I say, WAY TO GO AMAZON. Great service, great prices and great employees. *fist-bump*
Good idea! Once you made your carreer somewhere else and climbed up the top ladder you may be back to bring your expertise to your almamater (read: Amazon)
What a good company. When I worked at a Federal government navy shipyard as an engineer, I asked to take an on-base class that would have cost the government nothing to learn how to do mechanical drawings using a computer, auto-cad, I think it's called although that was so long ago I'm not sure if that's the right name or not. My boss said my application was rejected as that had nothing to do with the job I was presently doing. Years later the shipyard closed and when I talked to a guy in an outside engineering company he asked if I knew how to do autocad. "No" was the answer.
This wouldn't cover a semester at community college, so unless the individual is able to put out their own money as well, it is going to really help that much. Also, this is likely tuition reimbursements which requires the individual lay out their cash upfront which may be difficult for a lower wage worker unless they take a student loan. If the program is outside the individual current position (not just an improvement to allow a better position within their current field, it is not tax deductable either. It reminds me of a friend of my mother that took 20 years to finish her BS (her issue was not economic, but that she had to get an "A" because of her own crazy ideas). She eventually got a good position at 53. She reduced the lifetime value of her degree because she took 20 years to finish it. When she retired, she was replaced by a 28 years old that did college & their MBA in 4 years. Using the calculation of allowing one semester a year, it would take at least 4 year to get an AS best case.