The people who do well at Amazon are often those who thrive in an adversarial atmosphere with almost constant friction. Founder and CEO Jeff Bezos abhors what he calls “social cohesion,” the natural impulse to seek consensus. He’d rather his minions battle it out backed by numbers and passion, and he has codified this approach in one of Amazon’s 14 leadership principles—the company’s highly prized values that are often discussed and inculcated into new hires:
Have Backbone; Disagree and Commit
Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly.
Some employees love this confrontational culture and find they can’t work effectively anywhere else. “Everybody knows how hard it is and chooses to be there,” says Faisal Masud, who spent five years in the retail business. “You are learning constantly, and the pace of innovation is thrilling. I filed patents; I innovated. There is a fierce competitiveness in everything you do.” The professional networking site LinkedIn.com is full of “boomerangs”—Amazon-speak for executives who left the company and then returned.
But other alumni call Amazon’s internal environment a “gladiator culture” and wouldn’t think of returning. Many last less than two years. Managers in departments of 50 people or more are often required to “top-grade” their subordinates on a curve and must dismiss the least effective performers. As a result, many Amazon employees live in perpetual fear; those who manage to get a positive review are often genuinely surprised.
Employee churn doesn’t seem to damage Amazon, though. The company, aided by the appeal of its steadily increasing stock price, is an accomplished recruiter of talent. In its second-quarter earnings report in July 2013, Amazon said its ranks had swelled to 97,000 full-time and part-time employees, up 40 percent from the year before. New hires are given an industry-average base salary, a signing bonus spread over two years, and a grant of restricted stock units spread over four years.
Sources: Bloomberg BusinessWeek, October 14, 2013