How Amazon Pressures Out 6% of Office Workers
An anonymous reader quotes a report from Seattle Times, written by Katherine Anne Long: Amazon systematically attempts to channel 6% of its office employees out of the company each year, using processes embedded in proprietary software to help meet a target for turnover among low-ranked office workers, a metric Amazon calls "unregretted attrition," according to internal company documents seen by The Seattle Times. The documents underscore the extent to which Amazon's processes closely resemble the controversial management practice of stack ranking -- in which employees are graded by comparison with each other rather than against a job description or performance goals -- despite Amazon's insistence that it does not engage in stack ranking. The documents also highlight how much of Amazon's human resources processes are reliant on apps and algorithms, even among the company's office workforce. And they provide the most detailed picture yet of how Amazon uses performance improvement plans to funnel low-ranked employees out of the company. The company expects more than one-third of employees on performance improvement plans to fail, documents show. Amazon has previously said that its performance improvement plans aren't meant to punish employees. The policies described in the documents reviewed by The Seattle Times apply to the company's office workforce, who comprise a minority of Amazon's roughly 950,000 U.S. employees. Amazon's warehouses replace workers much more frequently, The New York Times has reported: Before the pandemic, annual turnover rates at Amazon warehouses reached 150%. Amazon said some of the documentation reviewed by The Seattle Times was not created by the company's central human resources team and contains outdated terminology. But it did not dispute that the documents describe Amazon's internal policies. An Amazon spokesperson also said characterizing its performance management system as stack ranking is inaccurate. "We do not, nor have we ever, stack ranked our employees. This is not a practice that Amazon uses," said spokesperson Jaci Anderson, in an email. She said the goal of the company's performance review process is to "give employees more information and insights to continue to grow in their careers at Amazon." Experts familiar with Amazon's processes disagreed with the company's stance that it does not stack-rank employees. Previous reporting by Business Insider has also found that Amazon grades employees on a curve. Amazon's performance-review system "forces [the company] to find the flaws in people as opposed to looking at their strengths," said longtime tech industry recruiter Chris Bloomquist, co-founder of Seattle's The Talent Mine. "If I have 10 brilliant people, but the least-brilliant person is fireable? That's stupid." The company's insistence that it does not practice stack ranking is "a bold-faced lie," Bloomquist said.
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