Amazon is overhauling its employee-evaluation system, making its Leadership Principles the central metric for reviews, affecting salary increments, promotions, and performance-improvement plans.
Employees will now be evaluated based on adherence to Leadership Principles, job performance, and potential, resulting in an Overall Value (OV) score guiding compensation and promotion decisions.
This marks the first formal integration of Amazon's Leadership Principles into the rating process in an effort led by CEO Andy Jassy to enhance discipline and accountability in the company.
While some criticize Amazon's quota-driven stack-ranking model for fostering a competitive work culture, the revised evaluation process aims to ensure consistency and better alignment with the company's values.