How Netflix reinvented the HR

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A lot of points here we have been deliberating about. Its mostly about the unusual approach Netflix took to HR, interesting read.

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This became a cult classic when it came out. I remember Netflix being an early pioneer with flex time off. It still took silicon valley startups quite some time to warm up to this idea. And now it’s hard to imagine a better way.

Btw they published a deck on their culture - Netflix Culture: Freedom & Responsibility


Some notable quotes:

For instance, during my tenure Netflix didn’t pay performance bonuses, because we believed that they’re unnecessary if you hire the right people.

I also don’t really like the whole carrot in front of horse thing. And performance bonuses are like that.

Most tech companies have a four-year vesting schedule and try to use options as “golden handcuffs” to aid retention, but we never thought that made sense. If you see a better opportunity elsewhere, you should be allowed to take what you’ve earned and leave. If you no longer want to work with us, we don’t want to hold you hostage.

I like how novel this idea is.

It’s a waste of time to articulate ideas about values and culture if you don’t model and reward behavior that aligns with those goals.


Here’s a simple test: If your company has a performance bonus plan, go up to a random employee and ask, “Do you know specifically what you should be doing right now to increase your bonus?” If he or she can’t answer, the HR team isn’t making things as clear as they need to be.