Amazon rolls out a stricter performance review process — with culture as a key metric

Core Insights - Amazon is intensifying the use of its "Leadership Principles" (LPs) to evaluate employee performance, marking a shift towards a more disciplined workforce under CEO Andy Jassy [1][6] - The LPs, which include values such as customer focus and cost discipline, are now formally integrated into the performance review process for the first time [2][4] - A new three-tiered evaluation system will assess employees based on their demonstration of LPs, performance, and potential, culminating in an Overall Value (OV) score that impacts raises and performance improvement plans [3][4] Evaluation Process Changes - The updated evaluation process aims to enhance the identification of top talent and strengthen corporate culture, with only 5% of employees eligible for the highest "role model" grade based on LP behavior [4] - The performance review system has been streamlined to improve consistency and support employee growth and development [7][11] Industry Context - This initiative reflects a broader trend among tech companies to reassess performance management and employee rewards, with Microsoft, Google, and Meta also implementing significant policy changes [5][6] - Jassy's leadership has included a full return-to-office policy, reduced management layers, and a revised pay model to better reward high performers [6] Performance Evaluation Framework - Amazon's internal guidelines categorize employees into five performance tiers, with specific percentage allocations for each tier, indicating a structured approach to performance management [13] - The company emphasizes the importance of thorough evaluations to ensure accuracy and minimize bias, recognizing the complexity of performance assessments [14]