VCP (variable compensation pay) payouts are affected by two factors: 1) individual employee attendance, and 2) facility site to plan production goals.

In this way, Amazon explains to its employees how it reaches its figures regarding an employee’s “total compensation package.” The company, throughout the year, will re-show the video during some All hands meetings. (More on stock below.)Īt orientation, the company shows new employees cartoon character videos of a hypothetical scenario where an associate, working for two or more years with the company, by combining base pay with VCP (variable compensation pay) and stock, is actually making dollars per hour. The company knows that only a percentage of employees receive some VCP payouts, an even smaller percentage receive large or maximum VCP payouts, and an even smaller percentage ever receive any stock. The following examines UPT (unpaid time off) as it relates to VCP (variable compensation pay):Īny time the company discusses Tier One employee compensation, it always points to VCP (variable compensation pay) and stock as part of the employee’s total compensation. If an employee falls below 0 hours of banked UPT, it is grounds for automatic dismissal. An employee can accumulate a maximum of 80 hours UPT in her account. If a worker is late or absent for mandatory overtime, she must cover the absence with PTO (personal time) or UPT (unpaid time off), unless she has been previously approved for vacation. A full-time associate’s weekly shift is four ten hour days, with a fifth day of mandatory overtime called at the company’s discretion. Full-time shifts at SDF8 are ten hours, so, forty-eight hours of personal time is not six days off per year, it is 4.8 days off.

Vacation must be requested twenty-four hours in advance, must be approved, and cannot be taken during blackout periods (peak and prime day). Personal time and unpaid time off can be used anytime. UPT is dispersed on the first day of the quarter in 20 hour chunks. PTO and vacation are distributed incrementally, a few hours per pay period. There are three types of time off for an Amazon Tier One associate: PTO (personal time–48 hours per year) UPT (unpaid time off–20 hours per quarter/80 per year) and Vacation (40 hours first year).

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