News India Live, Digital Desk: Amazon Change Salary Structure: The world’s leading multinational company Amazon is making significant changes in the way its employees give salary. According to the company’s new rule, employees who have been doing well continuously for a long time will now get more salary. At the same time, those who perform well for the first time or whose performance is not as stable, will be relatively less.
What has changed in the new salary rules?
According to a report by Business Insider, Amazon’s internal guidelines have shown that:
- Employees who get top tier rating for four consecutive years will get 110% of their pay range, while earlier it was 100%.
- For the first time, the employee with the top tier rating will now get only 70% increase, which was 80% earlier.
- The employee who improved the ratings of HV2 will now get only 10% increase, which was 20% earlier.
- Employees on HV2 to fall from HV3 will continue to get 20% as before.
- For the first time, employees with HV3 ratings will now get 40%, while earlier 50% were available.
- Employees who get top tier rating for two consecutive years will now get 90%, which was 100% earlier.
Special focus will be on old performance
In this new rule, Amazon is paying more attention to the previous performance of employees. Its purpose is to give more benefits to employees who have done better work for a long time. Employees who are new or whose performance has been unstable will get less increase.
Method of other tech companies
Large tech companies like Google, Microsoft and Meta also adopt similar policy, where more economic benefits are given on continuous good performance. With this, companies keep their morale and performance level high by giving better prizes to their best employees.
There was criticism before transparency
Earlier, the transparency of Amazon’s salary system has been questioned, as employees were not clear about their overall value (OV) rating. The managers were instructed not to tell the employees their ranking, causing dissatisfaction among the employees. New rules can also prove to be helpful in removing this deficiency.
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