Amazon introduces new rating system for employees: What’s changing in evaluations

Amazon has launched a new performance review system that puts a sharper focus on employee alignment with its internal culture, formally embedding the company’s 16 Leadership Principles into how staff are evaluated. The revamp marks the first time that these principles—such as “customer obsession,” “frugality,” and “bias for action”—are being assessed as a core metric during reviews, a move first reported by Business Insider.
Under the revised model, employees will now be evaluated across three key criteria: performance, potential, and their demonstration of Amazon’s Leadership Principles (LPs). These components combine to produce an Overall Value (OV) score that directly influences decisions around promotions, salary increases, and even whether an employee might be placed on a performance improvement plan (PIP).
The updated system is more structured and formalised, with a streamlined rating scale meant to enhance clarity and consistency. Crucially, only 5% of employees will be eligible for the coveted “role model” grade for LP behaviour, making top ratings both aspirational and exclusive.
According to internal company materials reviewed by Business Insider, the goal is to “improve our ability to identify top talent and further strengthen our culture.” The new review framework appears to be an extension of CEO Andy Jassy’s broader efforts to instil greater discipline and cohesion within Amazon’s workforce. Over the past year, Jassy has enacted a strict return-to-office mandate, trimmed layers of management, and adjusted compensation structures to better reward high performers.
As Fortune reported, Jassy sees Amazon’s unique culture—deeply rooted in the Leadership Principles—as the driving force behind its innovation and competitive edge. The performance management overhaul is part of that same strategic vision.
However, the new system has drawn criticism from employees who fear it may do more harm than good. Some workers have described the changes as “predatory and opaque,” citing concerns around limited oversight, subjective interpretation of the LPs, and the potential for misuse by managers. The tiered structure—where employees are ranked across five performance categories with pre-set percentage limits—has raised concerns that Amazon is moving toward a stack-ranking model, echoing controversial HR practices once employed by other tech giants.
The move also comes at a time when employee sentiment at Amazon remains fragile. As Fortune has previously reported, many staff members have voiced dissatisfaction with the company’s demanding environment, including the return-to-office policy and what they perceive as a metrics-obsessed culture.