In the competitive tech job market, software engineers often compare compensation packages between major companies. Amazon is a top target for many tech professionals who want to land a job working in the cloud, e-commerce, and artificial intelligence; over the past several years, a number have also gravitated toward Walmart, which is doing interesting things in e-commerce, data analytics, and other arenas.
In this talent battle between commerce giants, which has the advantage? Let’s break it down.
Salary Comparison: Walmart vs. Amazon
Let's examine the data from the image to directly compare earnings at different levels, starting with Amazon. For this exercise, we’re relying on levels.fyi, which crowdsources its compensation data; while crowdsourcing isn’t always the most reliable way of determining something, it does give us an idea of what companies are paying for tech talent:
And here’s Walmart:
Key Observations from the Data
What does all this mean? Let’s break it down:
- Amazon's Higher Total Compensation: At every comparable level, Amazon offers significantly higher total compensation than Walmart, primarily driven by stock options. While stock options are a great way for a tech pro to quickly boost their net worth, it all hinges on stock price staying high, which is something to keep in mind while taking a role in a turbulent economy.
- Stock Disparity: The difference in stock compensation is substantial, especially at higher levels. Amazon's stock component grows significantly with seniority, while Walmart's remains relatively lower.
- Bonus Differences: Bonus amounts vary, but generally, Amazon provides higher bonuses at entry and mid-levels, while Walmart's bonuses become more competitive at senior levels.
- Base Salary Gap: Amazon's base salaries are consistently higher than Walmart's across all levels.
Analysis and Implications
Entry-Level (SDE I/L1): Amazon's entry-level engineers earn significantly more than their Walmart counterparts, largely due to stock and bonuses.
- Mid-Level (SDE II/L2-L3): The gap widens at mid-levels, with Amazon's stock options playing a major role in the increased total compensation.
- Senior Levels (SDE III/L4 and Principal): At senior levels, Amazon's total compensation becomes dramatically higher, with stock options making up a substantial portion of the earnings.
- Career Trajectory: The data strongly suggests that Amazon offers a higher earning potential, especially for those who stay with the company long-term and benefit from stock appreciation.
How can I prepare for salary negotiations at either company?
Should you find yourself in the position to land a role at Amazon or Walmart, consider the following:
- Research: Use salary comparison websites to determine the market value for your role and experience.
- Document your achievements: Compile a list of your accomplishments with quantifiable results.
- Practice your negotiation skills: Rehearse your responses to common negotiation questions.
- Know your worth: Be confident in your abilities and don't be afraid to ask for what you deserve.
- Consider the entire package: Don't focus solely on base salary. Factor in bonuses, stock options, and benefits.
- Have a walk away point: Know the lowest compensation you are willing to accept.
- Get it in writing: Make sure all agreed upon items are written in your offer letter.
How can I increase my chances of getting hired at these companies?
Amazon and Walmart might be huge name brands, but their hiring and onboarding systems don’t differ considerably from other companies: you’ll want to show how you can contribute significantly in your role. That means carrying out the following steps:
- Tailor your resume: Highlight relevant skills and experience that align with the job description.
- Prepare for technical interviews: Practice coding challenges and system design questions.
- Network with current employees: Attend industry events and connect with professionals on LinkedIn.
- Demonstrate your passion: Show your enthusiasm for technology and your interest in the company's mission.
Conclusion
Based on the data from levels.fyi, Amazon offers substantially higher total compensation for software engineers across all levels, primarily driven by stock options. However, Walmart provides competitive base salaries and bonuses, particularly at senior levels, and is generally perceived to offer a better work-life balance. Therefore, engineers should consider their individual priorities and career goals when choosing between these companies.
