Amazon has undergone a major overhaul of its pay structure, prioritizing rewarding employees who are “consistently high-performing.”
Like many companies, Amazon is trying to establish a new normal post-pandemic. The company has been aggressively enforcing a return-to-office mandate, and is trying to cut costs from the pandemic-era over-hiring that plagued the tech industry.
According to Business Insider, the company is revamping its compensation structure in an effort to better reward employees who consistently perform well, as well as make the overall structure more transparent.
“This approach ensures a steadier compensation progression,” the internal pay guideline said.
“As always, employees’ contributions drive the outcome of their annual compensation review,” Amazon’s spokesperson told the outlet. “What’s different this year is that our approach to compensation changes now better distinguishes between newer high performers and those who have consistently exceeded expectations for their role and level.”
Amazon has tried to trim the fat, laying off or firing underperforming employees. With this latest change, the company is making clear that it values high performers, and will reward them accordingly.