Netflix HR Philosophy and Talent Management

This article explores the HR philosophy of Netflix and how it maintains its talent hire and reward practices globally. It also discusses the high-performance workplace based on a sustainable and ethical HRM system. Additionally, it provides two recommendations for developing effective HRM policies and practices to manage global talent. The article covers topics such as Netflix's HR philosophy, talent management, reward practices, and 360-degree performance management feedback system.

Human Resource
Management

Table of Contents
INTRODUCTION .........................................................................................................................2
TASKS.............................................................................................................................................2
1. Netflix HR philosophy ...........................................................................................................2
2. Netflix maintain its talent hire and reward practises globally ................................................4
3.Netflix maintain a high performance at workplace based on a sustainable and ethical HRM
system..........................................................................................................................................6
4.Two recommendations for Netflix on developing the effective HRM policies and practises
to manage their global talent.......................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Human resource management is the practice of managing people to attain better to perform well
in their field. It also provides the tools , training and talent which is important for the growth of
the company. This project will talk the major role of theories and practices of HRM to analyse
the scenario of workplace for professional, ethical and effective HRM in the chosen company.
Netflix is the chosen company for this project. Netflix is a subscription based streaming service
which enables the members to watch movies and shows without commercials over the internet -
connected device. Netflix is a top streaming entertainment service in the world. It was set up in
the year of 1997 with the headquarters in California, United States. It can be accessed through
internet browser on computers or through application software installed on smart TVs, set-top
boxes connected to televisions , tablet computers, smartphones or digital media players. The
report further explains the ways to maintain the talent hire process globally of the chosen
company. It also elaborates the use of ethical, sustainable HRM system to maintain the level of
high performance at the workplace.
TASKS
1. Netflix HR philosophy
The HR management Philosophy is not mainly about Human Resources Function, it is more
related to leadership style of the top level management, corporate culture and values. The
modern leaders usually require a modern HR Management approach. Netflix offers various
streaming video on demand and it provides multiple services like television production, film
distribution and film production. It has a strong customer base at the global level. Moreover,
Netflix is producing original content that too with high quality. Netflix HR philosophy helps in
attracting the employees to retain them and various firing practices (Bailey, Mankin and
Garavan, 2018).
Netflix HR Philosophy
The main focus of Netflix was on to hire the right people for the company and it also decided to
cut the unproductive employees so that it can focus on retaining the good ones. The main aspect
of its work culture is that to induce trust among their employees. The main policy is to be honest
and direct with their employees. The daily conversation takes place among the managers and
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employees about their performances. It believes in promoting the cooperative behaviour to make
the workers more creative (Banfield, Kay and Royles, 2018).
Netflix HR philosophy helps to attract, retain and fire policies of the employees
Netflix HR practises involve heavily scrutinizing employee's skill and capabilities. The
employees of Netflix would encourage their friends to become the co-workers as it is the best
place to work even beating Google, Facebook, Apple and Amazon. It provides various services
such as proper coffee machines, taco bars, fridges filled with the drinks, popcorn dispensers and
a snack of the month (Braga and et.al, 2019).
 Netflix focuses on providing support to its employees as it offers a global family in their
adoption, fertility or surrogacy journey. The benefits are available to the employees,
their partners, regardless of gender, sexual orientation and marital status. Moreover , The
company also offers an allowance through Carrot to support in covering the costs of the
family forming journey (Andalib, Darun and Azizan, 2019).
 The company does not prescribe 9 to 5 workday and the employees of Netflix are
encouraged to maintain the overall attitude of sincerity and objectiveness . The company
focuses on high level of productivity to make it a more effective place to work for
employees related to corporate culture (Chand and Markova, 2019).
 The company is also providing the freedom and responsibilities to its employees. There
are many companies who does not focus on employees where Netflix creates a sense of
ownership so that the employees feel connected. The main goal of the company is to
inspire people rather than managing them. That is why Netflix gives a lot of freedom,
power and information in support of their decisions. It leads to create a sense of
responsibility and self-discipline which tends to do great work that benefit the company
for overall growth and development.
 All the employees are allowed to choose each year that how much of their compensation
they want as stock options and salary. The employees are also allowed how much risk
they want.
 When it comes to the working schedule of the employees the rush hour can be stressful.
So, the company rewards the efforts of the employees not only the results. As measuring
the results are easier as compared to efforts. Company must empathize with the ground
reality and recognize their efforts. After the Covid-19 health has become the main
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priority for everyone. Due to pandemic both the mental health and physical health had
been tested so, company provided sick leaves to cope up with the issues.
 Netflix has not only hold the attention of its customers globally but also continues to
grow as an good employer. Netflix is the best place to work and mainly it maintains a
higher than average eNPS. The HR team is respected by the whole organisation that is
also the main reason of the success (Chaudhary, 2019).
2. Netflix maintain its talent hire and reward practises globally
Various ways to maintain the talent of the company are explained below-
 Netflix manages people by setting common goals and by giving them power by
providing them flexible working hours and unlimited holidays. The company tells the
truth about the performance and hire, reward and tolerate the deserving candidates. The
company focus on what people get done to have a deep understanding in how to
maximise productivity, creativity and motivation.
 Netflix gives the power to the people by fixing the goals and by treating the employees
like grown-ups. They can expense without getting approved from their managers. It also
focuses on operating the team like a sports team where the employees join the company
to compete and in that the employees are required to give their best so that they can
contribute more to the success of the teams.
 Netflix focuses on engaging the staff by giving them power in order to divide the work
and give orders to support the desire for a high- performance workplace. To stay in the
team, the staff has to prove their worth by passing the infamous 'keeper test'. This test
helps to analyse and ask the questions with their staff.
 The company keep the employees engage through empowerment by hiring the best
people and removing the rigid policies in order to get the important tasks done.
 Netflix rely on building the strongest team of best possible people to encourage them to
work together with a common goal. It is required to change when someone from the team
is not performing and driving towards the common goal. They are required to go or leave
irrespective of who they are and how good they were once (Somarathna, 2020) (Sokolov
and Zavyalova, 2020).
Reward practices
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The effective reward system is directly attached to performance system of company which offers
ample learning opportunities along with the healthy work environment. It also helps in attracting
the professionals who can help to succeed in the performance based environment. Different
companies offer different types of rewards such as bonuses, gain sharing, profit sharing, ESOP's
and stock option plans. The company offers a self styled culture and cheery global outlook. The
aim of the company is entertain everyone and make the world smile. Reward practises of Netflix
are as follows-
 Netflix offers high salaries with a strong benefits package such as free lunches, open
working hours, employee stock purchase plan, unlimited vacation days, mobile phone
discounts, dental, vision and health insurance. The company has maintained a reputation
as a company that pays its technologists huge salaries and managing people properly is
harder and more time consuming. By keeping the organisation's team lean, it allows each
manger to manage fewer people to perform better at job.
 Salaried employees can have unlimited parental leave as the parents are encouraged to
take four to eight months off so, they can take the off. When the time is right, employees
can come back to work full time or part time. Flexibility and support is provided by the
company if they return to work, they can leave again. The company has enjoyed a
extremely high rise over the past several years (Strohmeier, 2020).
 Netflix offers incentives to its staff which is led by the founder that is Reed Hastings.
Compensation, freedom and responsibility thrive the people on freedom who works here
and the employees seem to love it. The company demands that employees to perform at a
high level without the much initiatives (Zavyalova, Sokolov and Lisovskaya, 2020).
 Netflix also provide the premium pay and annual adjustment decisions focus on keep
employees at a highly competitive level of pay. The company also has a rather generous
and unique ESPP(employee stock purchase plan). It allows to give some employees stock
on the top of their salary which tends to allow the employees to take decision on how to
allocate the rest of their pay-check (Jaga and Guetterman, 2021).
Netflix has opted a traditional commission system that rewards the overall contribution. The
commission based approach has been very effective for several years as in the film industry in
which certain actors and directors are incentivize as per the success of the commercial film.
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3.Netflix maintain a high performance at workplace based on a sustainable and ethical HRM
system
High performance is the cultural set of behaviours which lead the company to achieve its desired
goals to bring the superior results. It helps the employees to be highly motivated and productive.
In a high-performance culture, the employees work hard to meet the goals together so that the
employees can feel engaged with the company's value and leadership. It helps to generate the
creative ideas, to the company more profitable with a better communication. The employees of
Netflix has freedom and flexibility where unlimited freedom means they have to present the
strong skills to prove their worth. The company retain only the best employees. The company
also provides the generous packages when the skilled staff no longer meet Netflix's needs. The
employees enjoy and appreciate the freedom to work at their own pace to keep on the top of
workloads (Shahreki, 2019).
Most of the employees say that they would recommend the company to a friend. The
company has been active since 1997 now, the users have been relying on Netflix for their content
instead of the television channels. Apart from few countries, Netflix is available all over the
world. Moreover, it provides an opportunity to film-makers to showcase their original to ensure
that the audience enjoys it. It has kept up with the changing times to make sure that they bring
the content which is appealing to all age groups and interests. A large number of audience
already trust Netflix, the firm can go beyond the movies and shows. There are various products
the company can expand such as live sports. As the brand does not show any live sports or pre-
recorded sports content that can be a great opportunity to expand with a grand customer base.
It is yet to be provide its services in some countries like China as most of its competitors
do not provide any type of service there and expanding into other international markets in an
amazing opportunity that Netflix can tap. It is also necessary to capture the audience in a
particular country with the relatable content with the audience by providing the content in
regional languages can be a great opportunities for the company to gain a loyal fan base. The
focus is also required on the innovation in technology and development. To provide the good
experience the company has invested on the network servers. The company is also focusing on
the content and availability on each screen. The main idea of the company is to collect the ideas
from the world and not on screen size. They make sure to be extremely flexible in the screen size
and needed to be present on all the possible screen size (Lee, 2019).
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4.Two recommendations for Netflix on developing the effective HRM policies and practises to
manage their global talent
Human resource policies are the rules and guidances of the businesses to manage the employees
in which the step by step instructions specify the actions that should be taken to comply with
several types of the policies. HR policies cover a variety of different aspects of human resource
management such as dress code, termination, recruitment, vacation, overtime compensation or
personal leave. Netflix stands out from other companies due to its culture memo which
highlights the core value of the company. The two recommendations for HR presented and
explained below-
 Provide more security to employees – It is the main duty of the employer to maintain a
safe working environment of the employees. Security is the main priority to bring
harmony on the workplace. It is necessary to know that the belongings of the workers
are protected and will be out of harm's way while working at the workplace. Staff can
relax in peace in mind that their belongings will be safe. As the employment security
helps the company to retain their people. Secure people can do their best work because
the people not feeling constant worry about their jobs, they can relax and settle into
doing their best work. Job security is seen as a big motivator in order to improve the
employee engagement and increase a sense of security. Netflix can also make sure to
maintain a safe working environment for the employees which will bring the harmony
to at the workplace (Khandakar and Pangil, 2020).
 360 Degree performance management feedback system- 360 Degree feedback is a
process in which the employees receive anonymous feedback from the people who work
around them. A group of people fill an anonymous online feedback which includes
questions that are measured on a rating scale and also raters to provide written
comments. The whole process should be supervised by a manager or coach of the
organisation. This system shows the difference between how they see themselves and
how others see them which lead to enhance their personality, strengths, weakness,
beliefs or motivation. With the feedback they can adjust and improve their behaviour to
identify the training needs. It can help the company to highlight the strengths and
weaknesses of the leaders. Earlier, employees used to get one dimensional feedback.
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Revealing a strength and improving it can lead to the growth of the company (Johansen
and Sowa, 2019).
CONCLUSION
It can be concluded that Human resource management is for the people within the company to
maximize the productivity and effectiveness to acquire, develop and retain the talent to align
with the workforce with the business. It demonstrated the different ways to implement the
HRM strategies in the chosen company. Where HR philosophy revolves around the beliefs and
assumption of management's people about their nature and their approach to work. It analysed
the employment laws globally to make the performance better with ethical and sustainable HRM
system. It further explained the recommendations for the chosen company in order to develop the
practises to manage the global talent.
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