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What is an Amazon PIP?

PIP stands for a performance improvement plan individually created for an employee. A PIP includes goals for the employee to help guide them on a process to improve their work performance and abilities.

What is a performance improvement plan?

A performance improvement plan is a formal process, often accompanied by a document, to improve an employee’s performance within a specific time frame. The manager directly creates the performance plan for the employee including goals to guide them through the process of improvement within Amazon.

Typically, if an employee’s performance does not improve, that employee is terminated. If the employee’s performance does improve, the employee remains with the company. This means that performance improvement plans come along with high stakes.

Usually, this type of performance plan is used in extreme scenarios to pinpoint when an employee cannot meet the specific expectations of their job description or when their behavior is detrimental to their performance within the workplace.

How does a performance improvement plan work?

At Amazon, PIPs come in two phases:

Phase 1 is called the “dev list.” It’s a discussion with your manager on areas that could use improvement. It’s easier to survive a dev list than a formal PIP.
Phase 2 is the PIP. It is difficult to survive, and sometimes you’re offered severance before the formal PIP even occurs.

PIPs document specific tasks, projects, and behaviors that the employee must achieve with clear deadlines. If employees do not meet these expectations by that date, the employee is typically let go from the job.

Here’s an example of what performance improvement plans look like.

What is the Amazon PIP rate? How common is it?

About 10% of Amazonians receive a PIP.

This is fairly high in comparison to other companies that have a similar plan. At other companies, 0.5 to 3 percent of employees receive a PIP. These types of performance improvement plans are seen in bigger companies where there is an extremely large workforce.

How soon can a new employee receive a PIP?

Some new employees are surprised that they can be placed on a PIP as soon as a few weeks after joining the company. This is because the PIP addresses crucial circumstances of when the employee does not meet the job expectations or has behavior issues within the company

How long is a PIP?

At Amazon, it’s about one to two months. This is meant to give the employee enough time to address the issue and align with the new goal. During this time, the employee can be encouraged to attend a course or seminar where they will learn more about the skill that needs improvement. If an employee chooses to complete the course, they are typically put on probation at Amazon.

Can I appeal a PIP?

Yes, you can appeal a PIP at Amazon, but it’s not common for employees to win the appeal.

How much severance can I get?

Amazon offers a minimum one-month severance program with an additional one week for each year of service to the company.

How can one tell if they’re getting a PIP?

Before officially putting an employee on a PIP, the HR business partner will advise your boss to put everything “in writing.” If you notice this happening, this could be a sign that you’ll be on a PIP.

You also might notice your boss changing other behaviors as well including:

Being curt
Be more formal
Less interested in coaching or mentoring you
Assigning your typical tasks to another individual
Not including you in many discussions

Is the root of the problem simply below average performance?

Depending on the department you work in within Amazon, the problem may not always be you. Sometimes employees are compared to one another for their skills, rather than looked at in a holistic manner of improving an individual employee’s performance. This can make the process unfair in some situations.

Has Amazon increased the number of Amazonians on a PIP?

According to an official human-resources document from early 2023 obtained by Business Insider, the number of Amazon staff put on PIPs spiked from spring 2022 through early 2023. This document shows that in April 2022, Amazon put just under 2,000 staff into the Focus program, the initial stage of Amazon's PIP process. By January 2023, those numbers spiked even higher, indicating a significant increase in PIP placements during this period.

Is Amazon using PIPs as a way to layoff employees?

There are concerns among some employees about "quiet firing" tactics, where increased PIP placements could be seen as a way to discreetly eliminate jobs and minimize severance costs during layoffs. Speculation over such tactics has been circulating within the company, adding a layer of complexity to the discussion about Amazon's PIPs.

Should you resign?

It’s a difficult choice.

On the one hand, you may want to prove to your boss that you’re up for the challenge, accept constructive criticism, and overcome obstacles. You may also be hamstrung by visa issues, so quitting may put unnecessary pressure to find a new job in a relatively short time frame.

On the other hand, you may feel that it isn’t performance-related (e.g. personality differences) and the time has come for you to move on. The other benefit of moving on is you may be offered a severance package which could represent a decent financial sum.

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Amazon PIP: What is It & What to Do