Amazon Web Services CEO Andy Jassy

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Amazon has a complex performance review system that some employees say are rooted in a cutthroat “stack-ranking” culture, as Insider previously reported.

One of the key pieces of Amazon’s review process is a metric called “unregretted attrition rate (URA),” which represents the percentage of employees managers weren’t sad to see leave the company — whether they parted ways voluntarily or otherwise.

Even the most senior executives at Amazon, including incoming CEO Andy Jassy, closely track URAs, according to internal documents obtained by Insider. Jassy, for example, has a “6% goal” for URA, which means he’s expected to replace 6% of his team through “unregretted” departures on what appears to be an annual basis. That can include employees who left on their own volition, but also those who were fired for low performance.

The directive includes executives and managers, though it’s not clear at what level a leader at Amazon might receive a URA target to follow. Several sources say that some leaders may have a URA goal that’s even higher than the 6% followed by Jassy.

In an email to Insider, Amazon’s spokesperson said the URA targets cited in this article are “not accurate and are misleading,” but did not go into specifics. 

The internal documents show that Jassy and other top executives also keep track of the “current unregretted rate,” a running tally of the percentage of employees the company is not concerned about losing, and “current gap to goal,” which is the number of employees it needs to see leave to reach its target URA. It also follows the number of people on an “active development list,” as well as the conversion rate of people on coaching plans to URAs.

One person familiar with the system said tracking URAs help managers refresh their workforce, bringing new employees to the team …read more

Source:: Business Insider


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