Tag Archives: Netflix

Did Netflix reinvent HR?

“Candor is not just a leader’s responsibility, and you should periodically ask your manager: “If I told you I were leaving, how hard would you work to change my mind?”

This is just one of several unusual or surprising policies or questions posed in a Powerpoint presentation shared by Netflix CEO and Chief Talent Officer. I find it interesting and relevant to share with all of you because I think these notions of being consistently honest with ourselves and our colleagues goes against what we inherently believe, which is that good things will come to good people.

Netflix encourages speaking up both as an employee and a manager. If you don’t feel you are getting the most out of your team, it is encouraged that you find new team members who will outperform the ones you have, even if they are doing just fine. As an employee, you are rewarded for “sustained A-level performance, despite minimal effort,” which I find a little infuriating. Imagine a scenario where a coworker rarely came into the office and rarely contributed in meetings, while you worked long hours and coordinated large meetings, but due to some arbitrary scale of success you were terminated and your colleague was not. Or, even worse, imagine watching that happen from afar. I would feel paralyzed, unclear how I should behave or react.

Netflix also promotes a process-free (or limited) environment where employees are authorized to spend within their budget, make decisions on assignments for which they are ultimately responsible, and cut much of the red tape that paralyzes other businesses. How does this continue to work for Netflix? Are there employees just that much better at communication, following the prescribed guidelines or role descriptions, or is it something else? I think empowering employees is huge and can have massive implications for eliminating much of the red tape  we have all experienced.

The rest of the presentation, along with a Harvard Business article, can be found here. I could spend all day detailing the rest of the Netflix value system, but instead look to you for your thoughts on what Netflix is doing, how sustainable it is for the long-term, and if any of these policies or lack-of-policies are things you would adopt or wish your organization would adhere to?