BPI-004 Innovative HR Practices a look at Netflix

Popular internet streaming company, Netflix, is known for its innovative HR strategies that are amazingly humane to its employees. The measure of success of an HR strategy is directly proportional to the success of the organization.

Netflix’s iterative experiments with ground-breaking policies to see what helps with employee satisfaction and performance. The refreshing approach of treating employees as opposed to the old draconian rules has helped the organization create a new benchmark in corporate culture. 

Some of the Innovative HR strategies of Netflix are:

Spectacular Severance Package

Employees especially ex-employees are good brand Ambassadors. Netflix’s spectacular severance package, it is not a compensation for loss of earning but a reward for the exemplary service that the employee has rendered to the organisation. Such exit package offer an opportunity to the person to invest a part on them for the future. Needless to say they bring in a lot of loyalty to the organisation and erase all ill feeling of being let go.

Hire, Reward, and Tolerate Only Fully Formed Adults

While every company plans and focuses on hiring right, Netflix was different in that, they believed that one not only need to hire the top performers but also one who will put the company’s interests first, and who understand and support the desire for a high performance workplace. The belief that 97% of the employees do the right thing and hence never believed in enforcing HR policies to deal with problems the other 3% might cause. The organisation felt that it is better not to hire such people or let them go even if you happened to hire them.

Treating employees as fully formed Adult is an approach many an organisation want but are afraid of; Netflix’s approach to their leave and holiday policy where employees are told  to take whatever time they felt was right as ‘off’ is an example of how the organisation really believed in treating its employees as matured Adults. However there were guiding frame-work within which the employees are expected to work but these were not rules that work against the policy.

Performance Management System

Netflix believed that formal Performance didn’t make sense and that they were too ritualistic and too infrequent. Hence discussion between Employee and Manager on performance are made as an organic part of their work. Further PIP’s were a no no. They believed if a person didn’t fit the bill it is better to have a straight talk and offer the best severance package.

Managers Own the Job of Creating Great Teams

At Netflix its “The team is as good as the Captain” and hence own the job of creating great teams. Managers have the option of picking the team member and developing them to produce the best output.

Managers are brand leaders and engineers of work culture

The ideal managers at company are the real ones. The ones who encourage growth of an employee as an individual as much as they care about the organization. Netflix’s HR policies encourages managers to set an example of how to create a work-life balance for their team-mates. Be it taking a long paid leave or playing games at work. The managers promote it all in well balance for their team by doing it themselves.

Netflix truly brings to table how innovative HR practices can take the organisation to great heights.


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