Amazon is changing its appraisal system, and it wants employees to work ‘like' CEO Andy Jassy for salary increase or risk …
has officially integrated its
Leadership Principles
into
employee evaluations
for the first time, marking a significant shift in how the company assesses corporate workforce performance. The new three-tiered system formally embeds the company's 16 core values into quarterly reviews, determining everything from salary increases to potential performance improvement plans.
Starting with this quarter's mid-year review cycle, Amazon managers will evaluate employees across three criteria: Leadership Principles adherence, performance, and potential. These factors combine to create an Overall Value score that directly impacts career progression and compensation decisions.
Only 5% Amazon employees can earn elite "role model" status
The initiative reflects
CEO Andy Jassy
's ongoing effort to create a more disciplined workforce and strengthen corporate culture. Over the past year,
Jassy
has implemented a full return-to-office mandate, reduced management layers, and updated compensation models to better reward top performers.
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The updated evaluation process combines Leadership Principles adherence with "performance" and "potential" ratings to determine an Overall Value (OV) score for each corporate employee. This score directly influences salary increases and determines whether workers may be placed on performance improvement plans.
According to internal documents obtained by Business Insider, only 5% of employees will qualify for the top "role model" grade when measuring Leadership Principles behavior. The company's spokesperson Sam Stephenson said these changes "streamline the process for managers and help to ensure greater consistency."
Amazon maintains its controversial stack-ranking system
Amazon's
performance review
approach continues to face scrutiny from employees who describe the system as "predatory and opaque." The company maintains its contentious stack-ranking culture, where managers categorize employees into five performance tiers with predetermined percentages.
Teams with over 50 employees must place 20% in the top tier, while 5% are designated as "Least Effective." This quota system has drawn criticism for potentially forcing managers to rank capable employees poorly to meet distribution requirements.
The move aligns with broader industry trends as tech giants like Microsoft, Google, and Meta have also implemented stricter performance management policies this year. Amazon's Leadership Principles, which emphasize customer focus and cost discipline, have long guided business decisions but now carry formal weight in individual career outcomes.
Amazon regularly reviews its performance processes to support employee growth and development, according to company representatives.
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