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Amazon revamps employee evaluations with leadership principles as core metric

  • 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.

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