Get All Access for $5/mo

Amazon's Program for Underperforming Employees Includes a Courtroom-Style Videoconference With a Jury of Peers While experts agree it's innovative, they're split on whether it works.

By Shana Lebowitz Edited by Dan Bova

This story originally appeared on Business Insider

Getty/Chip Somodevilla via BI

Last year, Amazon launched a program called "Pivot," designed to help underperforming employees improve their work.

It's been 18 months since Pivot was introduced and, as Bloomberg's Spencer Soper and Business Insider's Prachi Bhardwaj reported, some employees are protesting that the hearing process isn't fair.

Under the Pivot program, employees who are put on a performance-improvement plan have three options, Bhardwaj reported:

1. Quit and receive severance pay.

2. Spend the next couple of months proving their worth by meeting certain performance goals set by the manager.

3. Face a panel of peers in a courtroom-style videoconference, in which the employee and his or her boss present arguments about whether the employee should stay in the Pivot program.

An Amazon spokesperson confirmed the panel is made up of global co-workers who have similar jobs at Amazon.

Seventy percent of employees lose the trials, meaning they must choose between the first and second options above. If the employee wins the trial, they are removed from Pivot and have the choice to return to their current team or be placed on another team.

Business Insider spoke to three workplace experts about the value and potential implications of the Pivot program. All three agreed that the program was "innovative" in the world of people management.

Yet the experts were also concerned that these panelists, possibly unversed in the world of HR decisions, would get to shape the future of someone's career.

Under the Pivot program, employees choose either one manager or three non-managers as their jury, Bloomberg reported. They're also allowed to dismiss some panelists if they think the panelists will be unsympathetic to their case, according to Bloomberg. But overall, the employee doesn't get to select the jurors.

"Someone's career is such a deeply personal thing," said Jaime Klein, founder and CEO of Inspire Human Resources. "It is such a massive responsibility to determine the fate of someone's career."

Klein added, "You have to be really trained to be able to assess the current performance and the trajectory of whether someone can work through that performance issue."

Jodi Glickman, CEO of GreatontheJob.com, said it was "bizarre" to have three jurors who may have no previous experience interacting with you. The case might easily become a "popularity contest," Glickman said, with jurors who owe the employee's boss a favor deciding against the employee.

It would make more sense, she added, to select the jurors from among the employee's (and boss's) team members, so that they know what the employee's work really looks like and whether the boss's complaints are valid.

The peer-jury process gives employees more opportunity to improve than if they were summarily dismissed.

Still, Lynn Taylor, a national workplace expert and the author of Tame Your Terrible Office Tyrant: How to Manage Childish Boss Behavior and Thrive in Your Job, said she thought the Pivot program could be beneficial for employees.

Taylor cited the 30 percent of employees who win their cases, which is more than the 0 percent of employees who would get to stay if no one had the opportunity to defend themselves.

Taylor said it's also important to keep in mind that the manager of the employee being evaluated is also under review. If the jury decides the manager's complaints were unsubstantiated, that doesn't make the manager look very good, she said.

One confusing part of the Pivot program, according to Klein, is the option for employees to quit and receive severance pay. Severance pay is typically offered, Klein said, when it's "not your fault."

"It's odd to offer severance as an option if the individual does not want to pursue a performance program."

Shana Lebowitz is a strategy reporter for Business Insider. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Living

These Are the 'Wealthiest and Safest' Places to Retire in the U.S. None of Them Are in Florida — and 2 States Swept the List.

More than 338,000 U.S. residents retired to a new home in 2023 — a 44% increase year over year.

Growing a Business

Why Business Growth Plateaus — and 4 Proven Tips for Quickly Overcoming It

Is your business stuck in a frustrating plateau, with growth stalled and no clear path forward? Discover the surprising reasons why most companies hit this wall — and the game-changing strategies you need to break through and start scaling again!

Business News

Prime Bank: Empowering Growth as Kenya's Premier Banking Partner

Established in 1992, Prime Bank is one of Kenya's leading banks and a trusted partner for individuals, businesses, and communities across the country. With a nationwide network of 24 branches, Prime Bank offers clients a comprehensive suite of banking products and services tailored to meet their specific needs. The bank is also present in several regional markets, including Malawi, Mozambique, Botswana, Zambia, and Zimbabwe.

Leadership

How Entrepreneurs Can Create a More Inclusive Office Space

When you want your office to feel more inclusive, remember to consider the roles of design and layout.

Business News

DOGE Leaders Elon Musk and Vivek Ramaswamy Say Mandating In-Person Work Would Make 'a Wave' of Federal Employees Quit

The two published an op-ed outlining their goals for their new department, including workforce reductions.

Starting a Business

He Started a Business That Surpassed $100 Million in Under 3 Years: 'Consistent Revenue Right Out of the Gate'

Ryan Close, founder and CEO of Bartesian, had run a few small businesses on the side — but none of them excited him as much as the idea for a home cocktail machine.