![]() ![]() Unfortunately, Stone says it has the opposite effect.”Ambitious employees tend to spend months having lunch and coffee with their boss’s peers to ensure a positive outcome once the topic of their proposed promotion is raised in ,” says Stone. This system, which was created by Jeff Bezos, is supposed to cut down on politics and in-fighting. ![]() ![]() Amazon’s managers group employees into three tiers: The top 20%, who are groomed for promotions, the next 70% who are kept happy, and the bottom 10%, who are either let go, or told to get it together. In his book, he mentioned “In a meeting held usually in September or October, the leaders talk about who’s getting a promotion, and talk about who is doing well and who is doing poorly. Compensation at Facebook is almost entirely formulaic with multipliers (based on the Performance Assessment) for bonuses, raises, and additional equity grants.īrad Stone recently released a new book about Amazon and the research he did gave him unparalleled access to hundreds of employees. Facebook gives out raises and additional equity once a year but they do promotions and bonuses twice a year. Performance Assessments are final and they are used to determine compensation like raises, bonuses, and additional equity grants. Molly went on to say that “Calibration happens at the team level and at the senior management level, and all of their direct reports look at the numbers for the whole company, lists of the highest performers and lists of the lowest performers. The curve exists to ensure that extraordinary performance is rewarded (I believe the distribution is such that only 2% or less of employees are given the highest rating every cycle) and that if hard conversations need to happen, they happen.” Facebook has seven performance assessments as well as a guideline for what % of employees should be at each level, however it is explicitly not a forced curve, particularly for small teams. This has not stopped other companies from trying to emulate it.ĭreams about working at Facebook? Molly Graham who used to work in Facebook HR said “Then there is a two week period of calibration where managers meet to look at the assessments of everyone on their team and ensure that people are rated correctly relative to their peers. Many industry experts have claimed that this promotional system is toxic, creates an air of distrust and many people have said that this method has contributed to the companies overall decline in the last ten years. One of the most valuable things I learned was to give the appearance of being courteous while withholding just enough information from colleagues to ensure they didn’t get ahead of me on the rankings.” Worse, because the reviews came every six months, employees and their supervisors-who were also ranked-focused on their short-term performance, rather than on longer efforts to innovate. People responsible for features will openly sabotage other people’s efforts. Kurt went to directly quote an engineer who said “The behavior this engenders, people do everything they can to stay out of the bottom bucket. And the reviews had real-world consequences: those at the top received bonuses and promotions those at the bottom usually received no cash or were shown the door. For that reason, executives said, a lot of Microsoft superstars did everything they could to avoid working alongside other top-notch developers, out of fear that they would be hurt in the rankings. The system-also referred to as “the performance model,” “the bell curve,” or just “the employee review”-has, with certain variations over the years, worked like this: every unit was forced to declare a certain percentage of employees as top performers, then good performers, then average, then below average, then poor. ![]() Kurt Eichenwald commented that “Every current and former Microsoft employee I interviewed-every one-cited stack ranking as the most destructive process inside of Microsoft, something that drove out untold numbers of employees. Amazon, Yahoo and a myriad of other companies are starting to adapt this mentality into their internal systems. These are the superstars, people you want to hang on to, or people that need to shape up, or ship out. Microsoft pioneered a concept called stack ranking, which lumps employees and managers into three distinct categories. If you have dreams about working for Apple, Microsoft, Amazon or Yahoo, there are many barriers in place to prevent employees from moving up in the organization. ![]()
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