{"id":8281,"date":"2020-11-17T08:20:45","date_gmt":"2020-11-17T08:20:45","guid":{"rendered":"http:\/\/sage-people-scraping-gb.local\/?p=1248"},"modified":"2026-01-29T10:02:47","modified_gmt":"2026-01-29T10:02:47","slug":"7-ways-netflix-reinvented-hr","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/7-ways-netflix-reinvented-hr\/","title":{"rendered":"7 ways Netflix reinvented HR"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tPeople & Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\t7 ways Netflix reinvented HR\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

\n\t\t
\n\t\t\t
\n\t
\n\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tJessica Leyshon<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

\u201cIf you want to build a ship, don\u2019t drum up the people to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea.\u201d<\/p>\n\n\n\n

Those are the words of author of ‘The Little Prince\u2019 Antoine de Saint-Exup\u00e9ry, but also displayed proudly on Netflix\u2019s website about working at the organisation and its culture and values.<\/p>\n\n\n\n

The company, and its former Chief Talent Officer Patty McCord, are synonymous with great company culture.<\/p>\n\n\n\n

In 2009, their revolutionary culture deck was made public, setting out Patty McCord and CEO Reed Hastings vision and approach for attracting and keeping the best.<\/p>\n\n\n\n

It has since been viewed more than five million times.<\/p>\n\n\n\n

The strategy was set around seven key points outlining a culture based on company values, hiring top talent, giving employees the freedom to succeed.<\/p>\n\n\n\n

Their ideas \u2013 such as unlimited vacation \u2013 seemed revolutionary at the time and often promoted responses from the HR community such as: \u201cAre you making this up just to upset us?\u201d<\/p>\n\n\n\n

Meanwhile, in 2018 Netflix announced a record-breaking $11bn in revenue and over six million subscribers.<\/p>\n\n\n\n

\n
Request a free, live demo of Sage People and discover how it can help your organisation attract the best people, retain your key talent and increase productivity<\/a><\/div>\n<\/div>\n\n\n\n

Netflix\u2019s original seven values<\/h2>\n\n\n\n

So, what is Netflix\u2019s secret sauce for success? And, does its approach stand the test of time almost 10 years later?<\/p>\n\n\n\n

1. \u2018Values are what we value\u2019<\/h2>\n\n\n\n

Instead of something written on posters and stuck on a wall, values should be lived, breathed \u2013 and actually valued, Netflix explained.<\/p>\n\n\n\n

This means do as I do, not as I say. Leaders and managers, Netflix explained, need to live and breathe the company values in everything they do.<\/p>\n\n\n\n

2. High-performance<\/h2>\n\n\n\n

According to Hastings, your employees should operate as a highly performing sports team, not a family.<\/p>\n\n\n\n

You join the company to compete, and every day you do your best to contribute to the success of the team.<\/p>\n\n\n\n

However, being part of a dream team means that employees are always expected to be on their A-game, caring about each other and knowing they might not be part of the dream team forever.<\/p>\n\n\n\n

Those operating at an \u2018adequate\u2019 level are offered a generous severance package (which is generally a minimum of four months of full pay) so they can be promptly replaced by someone who is a better fit.<\/p>\n\n\n\n

Netflix also explains that there\u2019s no room for \u2018brilliant jerks\u2019 \u2013 the cost to effective teamwork is too high.<\/p>\n\n\n\n

3. Freedom and responsibility<\/h2>\n\n\n\n

This one is also simple: be honest and treat people like adults.<\/p>\n\n\n\n

If you are looking for people to take ownership, innovate, be smart and creative, then you need to give them the freedom and responsibility to do so, McCord explains.<\/p>\n\n\n\n

Ultimately, responsible people thrive on freedom and are worthy of freedom.<\/p>\n\n\n\n

Netflix, McCord and Hastings are of the view that if you\u2019re careful to hire people who will put the company\u2019s interests first, then 97% of your employees will do the right thing.<\/p>\n\n\n\n

Most companies spend a great deal of time and money writing and enforcing HR policies to deal with problems the other 3% might cause.<\/p>\n\n\n\n

\n
Download your free report: The changing expectations and perceptions of HR<\/a><\/div>\n<\/div>\n\n\n\n

4. Context, not control<\/h2>\n\n\n\n

Don\u2019t control staff, rather provide context to get the best results out of them instead.<\/p>\n\n\n\n

Netflix believes only by understanding the full context of its business can employees really help the company grow.<\/p>\n\n\n\n

In the words of McCord: \u201cThe best managers figure out how to get great outcomes by settling the appropriate context, rather than by trying to control their people.\u201d<\/p>\n\n\n\n

5. Highly aligned, loosely coupled<\/h2>\n\n\n\n

Setting a common goal and allowing your teams to achieve it without heavy-handed supervision is vital for Netflix.<\/p>\n\n\n\n

Teams across the company must work to the same strategy ensuring they are highly aligned but loosely coupled, meaning they are not constantly checking each other\u2019s work or sitting in endless meetings.<\/p>\n\n\n\n

6. Pay top of market<\/h2>\n\n\n\n

Hire the best and pay top dollar for it, McCord explained. Netflix always pay top of the market salaries. In their words: “One outstanding employee gets more done and costs less than two adequate employees.”<\/p>\n\n\n\n

7. Promotions and development<\/h2>\n\n\n\n

Netflix believes that people should shape their own futures within a company rather than have a career plan shaped by the company.<\/p>\n\n\n\n

The company scrapped formal yearly reviews early on. It found them to be too ritualistic and infrequent.<\/p>\n\n\n\n

Managers and employees were asked to have regular conversations about performance as an organic part of their work.<\/p>\n\n\n\n

Patty McCord\u2019s overall advice for HR and People leaders?<\/h2>\n\n\n\n

Instead of cheerleading, talent managers should think of themselves as business people, McCord says.<\/p>\n\n\n\n

They should be asking themselves: What\u2019s good for the company? And then they should implement strategies to address these.<\/p>\n\n\n\n

Ultimately, when a company is at the top of its game, so too are its people and their morale.<\/p>\n\n\n\n

Has Netflix\u2019s approach stood the test of time?<\/h2>\n\n\n\n

Fast forward to today.<\/p>\n\n\n\n

Patty McCord has since left her role at Netflix, potentially partly because of the culture she built, some argue. It was simply time for her to move on.<\/p>\n\n\n\n

\u201cWe did it like the grown-ups that we are and that\u2019s part of the culture,\u201d she explained.<\/p>\n\n\n\n

Although documentation of their culture has evolved into a more concise document on Netflix\u2019s website, its values remain largely unchanged, with two additions: \u2018Informed captains\u2019 (not waiting for consensus) and \u2018Disagree openly\u2019 \u2013 the idea that silent disagreement is unacceptable and unproductive.<\/p>\n\n\n\n

The company\u2019s current Chief Talent Officer, Jessica Neal, lives by McCord\u2019s tenants and has evolved the culture while staying true to its core values.<\/p>\n\n\n\n

Her advice?<\/p>\n\n\n\n

To continuously evaluate your values and keep moving forward. \u201cWe\u2019ve had to work hard to evolve the way we work,\u201d she said.<\/p>\n\n\n\n

\u201cA lot of people talk about \u2018maintaining\u2019 a culture, and that\u2019s sort of doesn\u2019t make sense if you think about it. In a relationship, you\u2019d never want to maintain \u2013 you\u2019d want to be better than you are. What we\u2019re trying to do is be better than we are today.\u201d<\/p>\n\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Sage People live demo<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Want to attract the best people, retain your key talent and increase productivity? Request a free, live demo of Sage People and discover how it can help you achieve your goals.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tRequest a free demo<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t

Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t
\n\t\t\t\t