Amazon fixes its compensation form for a more clearly bonus with the highest performance while reducing payments for some minimalists.
According to the internal guidelines obtained by Business Insider, Amazon reviews the compensation structure within the wage ranges to better get to know the long -term high performance.
Employees who get the “higher level” performance rating for a period of four consecutive years will now get 110 % of the wages, which exceeds the usual maximum. On the contrary, the higher level of the first -time level will get 70 % of the salary scope, a decrease from 80 % last year.
“This approach ensures more stable compensation,” said the guideline of internal wages, in reference to the total target of the company’s compensation (TCT).
Amazon changes set a step with other major technology giants who simplify employee bonuses and tighten total costs. Google has reduced rewards and fairness for weak performance, Microsoft has provided strict review policies, and Meta reduces its least -rated employees.
Amazon Bi spokesman told the updated model “Better Distinguish” with those who have fixed distinction.
“As is always the case, employees’ contributions pay the results of their annual compensation review,” said Amazon’s spokesman. “What is different this year is that our compensation approach is now changing better between the new high performance and those who have continuously exceeded their role and level.”
“The total value” reviews
The 12 -month payment course starts from Amazon for corporate employees in April. Most of their ranks and files receive their payment updates in late March or early April.
Although Amazon is different factors when determining employee salaries, individual performance categories – known as “total value” – are a major driver. Employees are classified by five performance levels: TOP TIR (TT), 3 (HV3) HIV, high value 2 (HV2), high -value 1 (HV1), and the least effective (LE).
The internal guidelines say the performance “directly affects”, and OV categories are used to create a compensation recommendation for each employee.
This year, more weight is placed on an employee classification date. For example:
- HV1 to HV2 is now given 10 % of the wage range, with a decrease of 20 %.
- But a person who drops from HV3 to HV2 still receives 20 %, highlighting the focus more on the previous performance.
- Those who move to HV3 will get 40 % of their payment range, not 50 % previously provided.
- The two -year -old employee now gets 90 % of the salary band, a decrease from 100 %.
- But 3 consecutive years of top layer can now reach 105 % of the range. Those who get 4 consecutive years of higher levels can get 110 % of the range. Previously, 100 % was crowned.
- This year, the best level of the first time will reach 70 % of the wage range, compared to 80 % in previous years.
The wage structure of Amazon has sparked internal frustration for a long time, in part due to its lack of transparency and the competitive nature of the classification of employees, as BI mentioned previously. Managers are required not to share individual OV categories with employees, and leave employees to conclude their performance based on the changes in their compensation.
This year’s guidelines also said that Amazon will continue to run the experimental program that allows employees to take 25 % of the new stock awards in cash. Traditionally, the stock compensation has a large part of the total salaries of Amazon, but it has become less attractive for employees looking for more urgent financial returns.
Despite the re -calibration, Amazon says that most of the employees who showed an improvement still see the increases this year. The spokesman added that the company provides “multiple channels” through which employees can raise fears about wages.
Do you have advice? Call this report via email on ekim@businesSINSider.com Or signal, telegram, or WhatsApp at 650-942-3061. Use a personal email address and a non -work device; Here is our guidance to share information safely.
