While Amazon's policy does seem incredibly limited, this particular jab makes no sense. Three years is the point at which you can begin contributing. So if your hypothetical worker survived that extra month and made it to three years instead of 2 years 11 months, he'd only get an employer contribution match on one month's paycheck.
Source: am an Amazon employee
As far as I know there's no tendency to fire just before vesting. But it wouldn't surprise me if you see less employees quitting between 30 and 36 months after hire, and more quitting between 36 and 42, than you would otherwise.
"There's evidence that lower-paid workers aren't widely participating in Amazon's 401(k) plan—and that creates a problem for high earners at the online retailer. For a plan to maintain its tax status, it can't disproportionately benefit what the IRS calls "highly compensated employees." A lack of participation by the rank and file means higher-paid employees can't max out their contributions to the IRS limit and may even get some of their planned savings back. Every year since at least 2011, Amazon has had to repay amounts "withheld and contributed to the Plan that exceeded the amounts allowed under the Code," according to the company's 2013 regulatory filing for its 401(k) plan. This year, it repaid more than $5 million in excess contributions made in 2014. For employees, that can mean paying more income tax and filing an amended tax return."
Their RSUs vest at an exponential rate, rather than the linear vesting that's standard in industry. You vest only 5% in your first year, 15% in your second year, and 40% each in years 3 and 4.
Tellingly, Amazon's median engineering tenure is 18 months - you tell me this vesting schedule wasn't designed with that in mind ;)
Ditto, Amazon's signing bonuses are usually structured with a 2-year clawback. I'm not sure if this is an attempt to increase the median tenure or avoid paying out - or maybe a bit of both.
It's just that what you describe sounds different than what most companies do.
My employer has a three year vesting period too but they begin contributing on day 1. Until you reach your 3 year anniversary, the only part of your account that you're entitled to is the part that came from your contribution.
How about this other aspect of their 401k plan? I have never worked at a company that does that. Being so closely tied to your place of work financially is usually not recommended.
I mean, it does suck, but it is what one sign for, so no amount complaining later will change that
Well-funded 401k matching plans that vest immediately certainly help with mobility, for those who care to stick around for the match!
Demand more.
What's the policy at MS, Facebook, Google, Apple, etc... ?