Amazon has updated its performance review process to formally include adherence to its 16 Leadership Principles as a critical metric. Managers will evaluate employees on a three-tiered scale that assesses leadership principles alongside traditional performance metrics. The Overall Value score will influence promotions and raises. Only 5% of employees will achieve the top rating for demonstrating leadership principles. Changes implemented by CEO Andy Jassy also include a return-to-office mandate and a new pay model, aiming to foster a strong work culture. However, employees have expressed concerns over the evaluation system's transparency and fairness.
"Under the new system, managers will now use a three-tiered scale that includes an assessment of how effectively employees demonstrate leadership principles, alongside traditional measures."
"The process is intended to 'improve our ability to identify top talent and further strengthen our culture,' according to internal guidelines."
"Only 5% of employees will be eligible for the top 'role model' grade for Leadership Principle behavior."
"Over the past year, Jassy has also enforced a strict return-to-office mandate, reduced management layers, and updated pay models to reward high performers."
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