Amazon’s new performance review system: stricter standards and what it means for employees

Originally under the new system It has been reported Manager is now by Eugene Kim from Business Insider Using a three-tier scale that includes how employees effectively demonstrate these principles, along with traditional measures of performance and potential, such as customer obsession and sensibility. These three factors are combined into an Overall Value (OV) Score It affects the likelihood that a salary increase, promotion, and performance improvement plan will be imposed.

Key aspects of the new process include:

• only 5% of employees He is qualified for the top “role model” grade of LP operation.
• The “performance” and “potential” rating scales have been streamlined to be more clear and more consistent.
• The process, according to internal guidelines, aims to “increase our ability to identify the best talent and further strengthen our culture.”

This move is part of the CEO Andy Jassie’s wider push For a more disciplined and cohesive workforce, I’m writing luck‘s Jason del Rey. Over the past year, Jassy has rewarded high performers by forcing strict return office mandates, reduced management levels, and updated paid models. He emphasizes that Amazon’s unique culture (rooted in its leadership principles) drives innovation and customer value.

However, these changes were not without controversy. Employees have expressed concern about possible misuse of limited surveillance and rating systems, and some have described it as “predatory and opaque.” Amazon’s approach involves categorizing employees into five performance layers and setting a fixed percentage for each: Cut Throat, Stack Rank Culture It reminds me of other high-tech giants.

A harsh environment

As before, a broader context reported by luckhighlights that these cultural and performance management shifts are occurring during the course of the future. Employee dissatisfaction. Many Amazon workers complain about it Office duties And some say the company’s demanding work culture prioritizes indicators and discipline for employee well-being. Despite these complaints, Jassy and Amazon’s leadership remains committed to strengthening the company’s core values ​​and maintaining high standards, despite the large technology industry rethinking talent management and rewards.

In summary, Amazon’s Revamped Performance Review System aims to formalize leadership principles as key metrics, creating a more disciplined, high-performance workforce. While it aims to strengthen culture and reward top talent, this change could strengthen concerns about transparency, equity and the company’s harsh environment.

In this story, Fortune used the generator AI to assist with the initial draft. The editors checked the accuracy of the information prior to publication.