Stack Ranking Makes Working here Untenable - Manager Avalara Employee Review

1.0
Mar 31, 2024
Recommend
CEO approval
Business Outlook

Pros

*Good pay *Decent benefits *The illusion of a progressive and fun company for which to work.

Cons

The culture was one of collaboration and individual growth until several years ago when Avalara was bought out by a VC firm. This VC firm made completely transparent that their their primary goal was to maximize profits and revenue. Shortly after the buyout, a round of layoffs occurred. Executive leadership swore time and time again that there would be no more layoffs, and in some ways, they kept their word. Expectation was that there would be a 10% attrition following the layoffs. Unfortunately, executive leadership had done such a good job in promising no future layoff, that only about 5% left on their own accord. Flash forward to this year and performance reviews for 2023. These reviews were handled differently than in previous years in that 10% of all employees had to be rated low performers 70%$ had to be rated "doing well", and 10% were to be rated top performers - a new directive. Now, let's follow the logic. On a team of 10 engineers, all who perform on a stellar level and are rock stars, one has to take a fall and be categorized as a low performer. This is called stacked ranking and is terribly demoralizing to both teams and individual employees. Again, following the logic, if the manager of the hypotethical team of 10 engineers submits them all as top performers, the reviews will be sent back to the manager by executive leadership with the directive that they be recategorized into the 10, 70, and 20 percent buckets. To the best of my understanding, managers were directed to re-write their performance reviews of employees recategorized as "low performers" to reflect this new categorization (this statement based on information I received within a meeting held by executive leadership). I know of one manager who had received a decent review by his manager, but the executive leadership took a look at his team's Gallup survey score and directed -his- manager to re-rate him as a low performer. The following is my own personal observation, but supported by everyone I know that got put on a PIP (at least 4 employees). Once a low-performer was assigned, he or she were put on PIPs that were difficult, if not impossible, to pass (all I know of were for a 30 day period). I know of one specifically that was told by his manager that there would be no way to satisfy the terms of the PIP in the timeframe allowed. At the end of this 30 days, if the employee had not satisfied the improvements outlined in the PIP, they were summarily terminated as low performers without severance. Also, if they were terminated by I believe April 1, 2024, they were ineligible to receive their 2023 bonus. This is what happened to me.

avatar
Avalara Response
2y
Thank you for taking the time to offer feedback about your experience. If you’re open to continuing the conversation with us, please contact avalisten@avalara.com.

Explore other reviews about Avalara

5.0
Jun 2, 2026
Recommend
CEO approval
Business Outlook

Pros

Good org Solid product Good middle mgmt.

Cons

Like every SaaS org direction as a whole is a bit turbulent Needs to figure out how to properly lean into Enterprise

avatar
Avalara Response
4w
Thank you for sharing your experience at Avalara. We appreciate your perspective and are glad to hear you’ve had a positive experience with the team and the work. We also value your thoughtful feedback as we continue to improve and grow. We’re grateful to have you on our orange team.
4.0
Jul 13, 2026
Recommend
CEO approval
Business Outlook

Pros

Avalara truly has great people working for the company. The culture is strong, we wear orange and are out in the market having fun which is appreciated internally but also by our prospects, customers and partners. There is potential to make very good money along with enjoying many other great benefits that other companies i have worked for have not offered. Avalara does not hesitate to invest in software and other tools that help their employees do their jobs more efficiently and effectively.

Cons

There has been a lot of turnover at all levels which is not a bad thing because it brings new ideas and perspective to the company. With these new ideas and frameworks there has been a lot of change and shifting goals so you need to be adaptable to keep up. The loss of longtime employees also leaves a gap of institutional knowledge which can make finding answers to questions challenging.

1
avatar
Avalara Response
1d
Thank you for taking the time to share your experience at Avalara. We love hearing that our culture, has had a meaningful impact on your experience, and we also appreciate your perspective on the pace of change across the business. Feedback like this helps us continue building on what is working well while improving how we support employees through growth and transition.
See reviews by: Helpful|Rating|Date|All