Thursday , July 29 2021

Watch out for Goldman, Capitol Hill: Amazon is here for your talent

When Amazon begins recruiting tens of thousands of workers in New York (pictured) and Virginia next year, Wall Street and Capitol Hill will feel the burn. Photo: AP

When Amazon begins recruiting tens of thousands of workers in New York (pictured) and Virginia next year, Wall Street and Capitol Hill will feel the burn. Photo: AP

New York:'s decision to split its second headquarters was a calculated move to get away from the best and brightest of two of the biggest talent groups in the United States: New York and Washington DC When the technology giant starts recruiting tens of thousands of Workers in cities next year, Wall Street and Capitol Hill will feel the burn.

On Tuesday, Amazon chooses Long Island City in New York and Arlington, Virginia, for its next large office locations, which provide $ 5 billion of investment and 50,000 high-paying jobs to those areas.

One of the factors that prompted the decision was the ability to attract high talent from two places instead of one, said Jay Carney, senior vice president of Amazon for global corporate affairs. "We realize that dividing it into two makes more sense," he added in an interview with Bloomberg TV on Tuesday.

The movement of Amazon through the Potomac River from the capital of the country will put a high pressure on the efforts of the federal government to hire experienced technology employees. Of the approximately 2 million federal workers, approximately 15% work in the Washington-Virginia-Maryland-West Virginia area, according to the US Personnel Management Office. UU.

"If Amazon presents itself as competitive, they will steal many young federal employees. That is the first group that will be affected," said Steve Lenkart, executive director of the National Federation of Federal Employees to Bloomberg Law. "The second group is the candidates. The federal government will have difficulty competing" with a private sector entrepreneur who can offer a higher salary and better benefits for people with the necessary skills, "he added.

The move from Amazon to Long Island City will also see some of the best commercial minds that navigate East River and away from Wall Street. The most sought after career for MBA graduates has changed the technology's finances, as internet companies like Amazon, Google and Facebook Inc. They have grown to some of the richest and most powerful corporations in the world. A decade ago, 20% of business students worked in finance and 12% worked in technology. Today, 17% work in technology and 13% in finance, according to the Admission Council of Postgraduate Administration.

Google is also expanding in New York, amplifying talent warfare, said Julia Pollak, a labor economist with online employment market ZipRecruiter Inc. Google plans to double the labor force of New York over the next decade to more than 14,000 employees, Financial Director Ruth Porat said on Monday.

The Amazon incentive package to reach New York City is based on adding 25,000 jobs in the area over a decade with an average salary of more than $ 150,000. The average base salary of an MBA in an investment bank in the US. UU. It's $ 125,000, according to Harvard Business School.

"The thing to do in the 2000s was to move to Manhattan and work for an investment bank or consulting firm," said Pollak. Now, graduation students are getting bigger in computing and mathematics, he said. "When you see the investments that students are making in human capital, they clearly seem to be predicting that technology will be the future of growth."

The two technology giants can offer working conditions "that are much nicer than those of Wall Street," said Pollak. Competitive salaries are not linked to market fluctuations, and there is a greater focus on work-life balance and a more casual environment, where jeans and t-shirts are the norm, said Pollak.

The result will probably be greater compensation cost, according to Michele Pollack, partner of the contracting company Korn Ferry.

"If you see that there is a rudeness for talent, they will have to be more competitive and obviously the simplest way to be more competitive is to pay more people," he said.

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