Netflix HR Policies and Practices: A Case Study

This case study explores the HR policies and practices of Netflix, including retention, firing, and recruitment. It also examines how the company maintains a high-performance workplace based on sustainable and ethical HRM systems. Recommendations are provided for developing effective HRM policies and practices for managing global talent.

Human Resource

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
1. Netflix HR philosophy help shape their employee attractions, firing and retention policy ...3
2. Netflix talent management system and reward practices globally..........................................4
3. Critically analysing how Netflix maintain a high performance workplace based on
sustainable and ethical HRM system. ........................................................................................5
4. Providing recommendations for Netflix on developing effective HRM policies and
practices managing their global talent.........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource is the department in the firm who make up the workforce a better place
in order to achieve success. The major function of human resources department is to select and
recruit right candidates with help of giving them proper training. Netflix is the famous brand
provides service of internet subscription and offers feature films, documentaries, cartoon films
and TV series in a variety of languages. The present report will provide detailed information
about Netflix HR policies which includes retention process, firing policies, employee
recruitment. Furthermore, the report will give detailed information about how the company has
maintained its talent management system and reward or compensation practices. The case study
will provide how the Netflix maintain high performance working with the help of HRM system.
At last, the case study will recommend about developing effective HRM practices and policies in
order to maintain talent globally.
1. Netflix HR philosophy help shape their employee attractions, firing and retention policy
The major focus of HR practices in Netflix is to increase employee's skills and
capabilities and fire them for being good enough. This brand has become the best place in the
world to work as compared to its competitors like amazon, apple and Facebook. The brand
turnover is 11% in one year, which is low as compared to other tech companies. They are
recruiting more employees every year and make profit around 2 million per candidate. The
company has captivated the deep attention to its audience around the world and also develop its
reputation because of its work culture.
A positive organizational culture of the firm has created good reputation among
employees and clients both. The company provide excellent services to its staff members in
order to motivate them. Facilities like popcorn dispensers, coffee machines, taco bars and drinks
with snacks. This keep the staff members motivated and engaged so that they can work
effectively without any burden. The main purpose of this brand is to maintain and value integrity
and put people before their policies (Netflix HR practices, 2021). The company's Human
resources department has recruited highly effective employees so that they can achieve
organizational culture. An excellent culture that focuses on responsibility and freedom and tries
to avoid any uncertainty in the future. In order to attract employees the company has cultivated a
great culture that is fun, entertainment, creative, great collaboration and stimulating to meet

success. This keep employees engaged, productive and happy with effective values and
philosophies. The company HR policy motivate their employees by providing them true and fair
feedback on their work performance.
In the year 2019, hire and fire policy of the company was ranked no. 11 on LinkedIn's top
attractors list, thus this was the most sought-after workplace by job candidates. According to
report, hire and fire culture was widely practices and company's in the US is adopting this
method. So, Netflix decided to continue with its HR policies and practices in order to expand it
internationally. The chief talent officer of the company named as Tawni Nazario Cranz was the
responsible person for applying the human resource standards to international market. The firm
did not hire fresh college graduates and the candidates who wanted to work from remote areas.
The company has provided a policy of unlimited holiday to their employees. A candidate is
allowed to decide about their holiday when they want to take break from work making sure it
doesn't effect the company's performance.
A firm has created a full set of trust in order to perform retention policy effectively. The
firm has maintained a retention rate of 3-4% over the last two year which is 2019-2020. In this
way. The brand has maintained employee attraction, retention policy and fire and hire practices.
Along with productive workforce, positive organizational culture and providing annual
performance grades to their employees with help of 360 degree review procedure. These steps
are helpful for them to achieve regular feedback about their performance and increase
productivity of company and individual performance.
2. Netflix talent management system and reward practices globally
Talent management strategy of Netflix shows that they hire highly performance
candidates, tolerate only fully formed people and providing them true feedback about their
performance. The managers of the company have responsibilities to create great and effective
team so that they can achieve success (Ziegler, 2021.). Good talent mangers think like big
entrepreneur and innovative people such as Human resource people. They have provided
freedom, creativity and responsibility to its employees in order to maintain their talent hire
practices. The leaders of the firm own the job of creating the positive organizational culture. As
discussed, the company strive to hire the best people and create value integrity and respect for
each other in order to improve collaboration between team-mates.

The HR policy encourages employees to explore new and creative ideas to meet their
work objective effectively. This has increase and promotes competitiveness against their
competitors like amazon, apple and Facebook. A product manager of company Neil hunt says
that the company functioned better when the product management team work effective and as a
team. The company has also introduces a transparent pay policy in which every candidate could
easily view about reward and compensation benefit earned by management team and employees.
It is noted that company hire only high confidence people with good experience. They are not
focusing on educational qualifications of candidates as the human resources believe in
experience and ability to solve problem. Also, The employees needs to have good knowledge
skills, technical knowledge and communication skills.
The company hire those people who perfectly fit and suitable for the workplace. It is
noted that While taking interview a word 'no' from single interviewer implied that the candidate
would not be hired. Furthermore, the company has provided leaves policies, holiday policies,
sick leaves and other casual leaves. The company doesn't do bonuses, employees training as they
believe in developing employees skills and capabilities. The HR and management team believe
in say to bonuses and instead put that amount of money into larger base salaries or pay scale. A
company salaries include guaranteed payment in order to keep motivate their staff members.
3. Critically analysing how Netflix maintain a high performance workplace based on sustainable
and ethical HRM system.
The organizational culture of Netflix was believed to have worked only for the highest
achievers. The company believes that in order to achieve success it is mandatory to hire high
performers with good experience. A firm retained on high skilled performers and let all other
candidates go at the earliest possible times with good package. The HR policy has accepted hire
and fire culture in order to maintain its employee retention system so that high performance
workplace can be achieved (Zahoor, Abdullah and Zakaria, 2021). The major focus of the
company culture is to only keep highly effective people. Competitive and high performance
culture of the company has effective scheduled meeting to achieve collaboration between
employees and management team. There is no room for wasting time instead use the time in
extra activities so that employees' engagement can be achieved. Weekly meetings start and end
on time so that work and personal life can be balanced. The company's organizational culture is

one of the best example among its competitors that trust only its staff members to drive the
company forward and achieve business success.
The company has also introduced a transparent pay policy in which every employee
could easily see his compensation earned by other staff members. The firm focused on only
hiring experienced candidates and do not hire newly graduates from college students. The major
focus of the company is to make decision-making process effective here significant decision are
being by management team with the help of well-prepared agendas.
The centre of the organizational culture design of the company defined by the corporate
values, strategic priorities and main purpose of company and also behaviours that the company
rewards or punishes. As the major purpose of this company is provide entertainment and
sustained a performance of the employees (Wayne and Castro, 2021). In terms of priorities, the
firm emphasizes freedom and sustained performance, rules and regulations, adequate performers
and efforts and contribution. The company promotes psychological safety and feedback in order
to motivate people to be selfless, helping each other and considering agreement and
disagreement.
Disagreement is encouraged in the company as it must happen openly and in front of
employees not behind their backs in order to avoid conflicts between staff members. The
company has a powerful and clear culture with specific rules and regulation. They have some
guidelines to motivate people to make the business related decision in a correct way on the basis
of responsibility and freedom principle. When it comes to any strategic and decisions, there is a
responsible supervisor who make judgements call after sharing their point of view to achieve
company's goals. Managers of the company provide context not to decide anything unless an
employee is unsure about what is the best decisions to be implemented (Miao and et.al., 2021).
The firm has good employee culture where after successful task they celebrate their achievement
along with more joy, more empathy and more laughter. They strive to hire the best candidates
and value inclusions and excellence.
Work benefit policies of the company had a standard paid-time-off policy in order to
encourage employees. Moreover, employees can keep track on the days they were off and
informed their managers about it. It is noted that After some markets research the company
found that no governed holiday time at in the California. The company has maintained its
reputation by providing the chances to work with a lot of highly experience person and

impressive staff members (Lozic, 2021.). With its goal and objective lines the company become
the best global entertainment distribution service channel in entertainment world. The firm has
maintained its reputation by creating markets that are accessible to film-makers in the
competitive markets. The another major goal is helping content creators and digital marketers
around the world to find a global audience so that they can achieve success.
A company drive higher transparency and more openness or communication skills
between the team-mates so that they can make decisions. Thus, these major steps has allowed the
company to gain competitive advantage in the competitive world of entertainment and technical
market (Gürlek and Uygur, 2021). Marketing strategy of the company has allowed it to charge
more prices than its peers, by giving it a competitive benefit. Human resources department of the
company has a direct relationship with cultivating organizational positive culture and retention of
its staff members. In this way, Netflix has maintained high performance workplace based on
sustainable human resource management systems.
4. Providing recommendations for Netflix on developing effective HRM policies and practices
managing their global talent.
Training and development- In today's business environment, training and development
can improve work quality and outcomes of team work. As a result, it can create positive impact
on individual and company's performance. An effective team work and employees feel happier in
their work, if they get proper training and development session. The company doesn't focus on
training part so, it is advisable to focus on giving training to employee if necessary. In today's era
every people need training achieving successful criteria of the firm and personality development.
It is noted that there is a positive relationship between the motivation, training, employees
performance and productivity (Farrukh, and et.al., 2021). The case study shows that motivation
and training has positive impact on overall performance of company and staff members. The
company needs to invest in training session so that it can improve the others factors too. They are
management behaviour, working environment and technological knowledge and also respect for
others.
Bonus- It is a sum of amount added to employees wages as a reward so that they can
perform effective. Because of hard work and their efforts company must pay bonus once a year
this will help them to maintain their dignity. Nowadays, people are more concern about getting
reward in the name of bonus and compensation (Csalló, 2021). It can create positive impact on

business culture and avoid conflicts between employees and management team. This is the only
way the candidates make efforts and give contribution towards work. It is seen that company is
not focusing on providing bonuses to its employees. So, it is advisable to gives bonus and
compensation to encourage employees at international level. It is recommended to provide bonus
to newly hired employees to encourage them. This will ultimately motivate them and increase
their productivity and individual performance. In this way, by offering them employee reward
company can develop effective HRM policies and practices managing their global level talent.
Giving chance to fresh graduates- As the company hired only experienced candidates
and did not give chance to newly graduate college students, it is advisable to give chance to work
with most popular brand. The best thing about today's young generation is loads of passion
towards work. They have a point to prove themselves in front of the world and showing talent
and skills, abilities and capabilities in the competitive market (Agnihotri and Bhattacharya,
2021). They seek more attention and keen to work on difficult task to encourage self-confidence.
Talented and fresh candidates are more dedicated and just because of lack of experience
company reject them. All they need is a little attention, proper guidance and direction with
support.
New and talented young people have potential to deal with difficult situation as they are
more enthusiast. Netflix HR sift through a bunch of CVs and tend to judge people with no
experience, so it recommended seeing some sort of talent in young generation. It is said that
people with no experience doesn't have the go and burden or pressure of work that bogs down
their learning ability and performing process (why you should give freshers a chance, 2021).
Taking a chance on a newly graduates might help company to achieve success and gives lot of
benefits in the future business success. They are the people who have ability to adapt things
rapidly and quickly as they will be able to open new ways of doings different task. An
inexperienced employee is like clay that can be shape by the HR of the company and managers
into any form they want.
CONCLUSION
To conclude, human resources department plays a vital role in company culture as it
helps to cultivate positive organizational culture and motivate employees working in the firm. By
evaluating the report it is concluded that the company has maintained its high performance

working and high performance workplace based on sustainable and ethical HR system. In
addition to that, it is also summarized that by company focus on hiring experienced person rather
than giving chance to newly graduated from colleges. So, it is recommended to give chance to
young generation who are more enthusiast towards task and doing work. This will ultimately
help the company to achieve more success in this competitive world of technology and
entertainment. Finally, the case study also suggest providing training and bonus to employees as
it is a part of motivational factors and helps to encourage them to increase performance na
productivity.

REFERENCES
Books and Journals
Agnihotri, A. and Bhattacharya, S., 2021. Netflix: The Firing Machine?. SAGE Publications:
SAGE Business Cases Originals.
Csalló, R., 2021. Value Proposition at NETFLIX.
Farrukh, M., and et.al., 2021. Influence of high-performance work systems on intrapreneurial
behavior. Journal of Science and Technology Policy Management.
Gürlek, M. and Uygur, A., 2021. Service-oriented high-performance human resource practices
and employee service performance: a test of serial mediation and moderation
models. Journal of Management & Organization. 27(1). pp.197-233.
Lozic, J., 2021. MEDIA INDUSTRY TRANSFORMATION: COMPARISON
MANAGEMENT IN COMCAST AND NETFLIX. In Economic and Social Development
(Book of Proceedings), 69th International Scientific Conference on Economic and
Social (p. 107).
Miao, R. and et.al., 2021. High-performance work systems and key employee attitudes: the roles
of psychological capital and an interactional justice climate. The International Journal of
Human Resource Management. 32(2). pp.443-477.
Wayne, M. L. and Castro, D., 2021. SVOD global expansion in cross-national comparative
perspective: Netflix in Israel and Spain. Television & New Media. 22(8). pp.896-913.
Weijers, K., Netflix and Big Data.
Zahoor, N., Abdullah, N. and Zakaria, N., 2021. The role of high performance work practices,
work-family conflict, job stress and personality in affecting work life
balance. Management Science Letters. 11(4) pp.1367-1378.
Ziegler, A., 2021. Reed Hastings, Erin Meyer: No Rules Rules. Netflix and the Culture of
Reinvention. Arbeit. 30(2). pp.129-135.
Online
Netflix HR practices. 2021. [Online]. Available through: <https://www.process.st/hr-practices/>
Why you should give freshers a chance. 2021. [Online]. Available through:
<https://yourstory.com/2017/07/chance-to-freshers/amp>