Meta has become the latest technology company to adjust its performance review process, shifting the focus to an employee’s output rather than their effort.
The company is introducing a new performance review platform named Checkpoint. This system will evaluate employees and categorize them into four distinct groups, with top performers being recognized for exceptional contributions, according to internal communications.
“We are refining our performance program to make it simpler and to place a greater emphasis on recognizing outstanding performance,” a Meta spokesperson stated. “While our employees have consistently been part of a high-performance, impact-driven culture, this new approach will facilitate more frequent feedback and recognition in a more streamlined manner.”
The internal memo detailed the anticipated distribution of performance outcomes and the corresponding pay multipliers for base bonuses. Approximately 20% of employees are expected to be classified as “Outstanding” and will be eligible for a bonus equivalent to double their base pay. A further 70% will be designated as “Excellent,” receiving a 115% pay bonus. Around 7% are projected to fall into the “Needs Improvement” category, eligible for a bonus up to 50% of their pay.
Roughly 3% of employees may be categorized as “Not Meeting Expectations” and will not receive a bonus. Conversely, the system is designed to reward top performers with bonuses that could reach up to 300%.
This update to Meta’s performance reviews follows similar adjustments by other major tech companies aimed at better reflecting employee performance. Amazon’s process requires corporate employees to list three to five key accomplishments that showcase their best work. In 2022, Elon Musk mandated that X (formerly Twitter) employees provide weekly updates on their accomplishments.
Meta has scheduled a company-wide meeting for January 22 to provide further details on these changes to its employees. The new policies will take effect for the 2026 performance cycle and will not alter the current review period. The updated system will feature two review cycles annually, utilizing the same rating scale for each. As part of this revised timeline, bonuses will be disbursed twice a year.
Efficiency is the name of the game for tech giants
Technology companies are increasingly seeking tangible evidence of output as a measure of productivity, requiring employees to demonstrate their performance levels. While outcomes have long been a fundamental aspect of corporate performance evaluations, the current shift towards output-based assessments reflects a growing inclination among tech leaders to motivate employees to prove exceptional performance.
Amazon CEO Andy Jassy has been implementing measures to streamline management layers and reduce bureaucracy since assuming leadership from founder Jeff Bezos in 2021. Google CEO Sundar Pichai has also indicated that the company is aiming for greater efficiency to foster “product excellence and productivity.”
Vast changes at Meta
This trend has been evident at Meta, where the tech company declared 2023 the “year of efficiency” as it reduced its workforce. In 2022, the company laid off approximately 13% of its staff, totaling 11,000 employees. Last year, Meta reduced its workforce by 5%, or about 3,000 workers, specifically targeting underperformers.
It is important to note that an update to Meta’s performance review system does not necessarily signal impending further layoffs. However, Meta is reportedly planning layoffs this week within its Reality Labs division, as the company scales back its metaverse initiatives, according to recent reports.
“We typically address individuals who are not meeting expectations over the course of a year,” Meta CEO Mark Zuckerberg stated prior to last year’s workforce reductions. “However, we will now be conducting more extensive performance-based cuts during this cycle.”