Netflix's Human Resource Management: Challenges and Opportunities

This report analyzes the effectiveness of human resource management at Netflix, including their hire and fire policy, recruitment practices, and challenges and opportunities for developing a sustainable HRM system with a focus on performance and ethical practices.

Business Report about
Netflix

Table of Contents
Executive Summary ........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK ..............................................................................................................................................4
Why do you think Netflix was successful in its human resource practices, especially regarding
their “hire and fire” policy? Discuss first about the policy in the United States, and then how
you think it will work globally?..................................................................................................4
Critically analyse the recruitment practices of Netflix...............................................................6
Critically analyse the challenges and opportunities of effectively and efficiently developing
sustainable HRM system with focus on performance and ethical practices...............................7
Please provide recommendation for Netflix, on how they can improve their policies and
practices?.....................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11
Online........................................................................................................................................12

Executive Summary
This report is focus on the effectiveness of human resource management of Netflix. It is
most crucial function that generates all the good and positive outcomes in organisation therefore,
the report has carried out the relevancy of hire and fire policy of Netflix which is not meant for
global operations. As country like Asia and Japan could not accept this culture due to
complexities and less job security. Also, there must be effective recruitment policies which is
carried out in a critical way with the implementation of Netflix. For that instance, the company
needs to create sustainable way of HRM function that focus on employees welfare and retention.

INTRODUCTION
This report is going to ficus on the human resource management of Netflix. Human
resources management is the most crucial function for every organisation. As employees are the
important assets of company which contribute in profitability, probability, brand name and long
term existence of the company. HRM system is the key function that enables all the decision
regarding managing workforce on domestic as well as international level. It is necessary for the
company to ascertain effective working of employees. This could only be possible through
positive working environment, proper guidance and training as all of these are a part of HR
strategies. Netflix is the global internet subscription provider which offers wide range of services
across the world. It was established in 1997 first in California. The company has large operations
and comes under the list of 100 fastest growing company(Davis, and Zboralska, 2017). It
enables all the video screening, films, shows and a huge list of entertainment that are widely use
by almost every individual. It has created a unique benchmark in the history of internet
technology. Netflix has rare and unique kind of policies in regards of human resources
management. It adopted different ways to recruit and select the best people by providing
effective pays and incentives. This report is going to clearly evaluate the hire and fire policies of
organisation to analyse does it working on a right way or require some improvement. In addition
to this, there will be all the opportunities, process and challenges Netflix has face in regulating
effective practices across the world.
MAIN BODY
TASK
Why do you think Netflix was successful in its human resource practices, especially regarding
their “hire and fire” policy? Discuss first about the policy in the United States, and then
how you think it will work globally?
Netflix is the global provider of subscription services to enjoy shows, films, video
screening, TV series and featuring podcast. The organisation has successfully made effective
tenure at international level as people are being addicted to the shows by spending most of the
time on Netflix. As the operations are global and technical, the company only look for
professional experts as the mangers are very particular in working that shows no single mistake
is allowed during work practices. For that instance, the hire and fire policy of the organisation

has been practising in United states under which the company believed to hire only professional
experts and does not provide job opportunities to fresh college graduates. The company only
believed to get highest performers who have much experience in technical and digital working.
The motto behind this policy is to recruit only best people to eliminate chances of any mistake
and work will be performed with true perfection (Ruiz-Navas, and Miyazaki, 2017). With
consideration of this believe, Netflix does not retain employees who are not achieving any
standards of high performance criteria. They fire those employees by giving some amount in
terms of compensation package. It shows that, Netflix only require those candidates that have
high experience and great performance holders to carry out each work without irrelevancy and
mistakes. This policy culture was practiced in Unites states as the employees have accepted this
environment which is under the norms of country. There are several other policies made in
sanitisation in regards to performance check, transparent pay role which somehow affect the
productivity and satisfaction of employees. As the Netflix aims to expand globally and
positively maintained its presence in all over the world. But it does not mean that, policies
which are accepted by employees in Unites states will work into other countries like Asia. As
society is known from its people and these people decide what must be their norms and right
that would secure their lifestyle. Therefore, in countries like Asia, the Hire and Fire policy is
not effective there as it could impact on the brand image of company. People are required to get
job security and look for internal growth by learning and practising the work criteria of company
in which they are working. But Netflix has opposite believe to this cultural practices which
could not adopted by people in Asia countries (Agnihotri, and Bhattacharya, 2021). This will
show frequent termination of employees that make the organisation away from a positive
contribution in economy. In addition to this, Netflix does not permit working with remote
location as the product manger has believe in working together will give better performance
results within the office. This shows that, employees any receiving good pays and monetary
benefits but they are not getting flexible environment due to which employee criticise these
policies of Netflix. To make a better image by seeing all these criticism among human resources,
Netflix decided to launch transparent pay policies In which employees can easily view the
compensation and benefits other are getting. This was also not meant as an effective HR policy
as employees felt less motivated and offend by knowing others are getting more then them.

Therefore, it shows that company require to keep their employees motivated and retain
into organisation. As per the theory of high performance work systems (HPWS), the company
needs to focus on enhancing their performance rather than controlling on actions. It is about
providing a transparent way of working and flexibility which makes them highly competent,
qualified and motivated towards job role (High Performance Work Systems, 2014). Therefore,
Netflix needs to work on the important component of this work system which influence on
ensuring employees security, selecting best people and create a decentralised working
environment. Through these practices, employees will be confident and ready to adopt new
changes, learn skills and provide better customer service. As it is not necessary that the policy
regulating in US will work on other countries (Linhart, 2020). Therefore, Netflix must be prepare
with effective strategies which are effective for the people who are doer of company. Also, the
company could use motivational theories by increasing employees morale through assigning
powers, flexibility and focus on providing training.
Critically analyse the recruitment practices of Netflix.
Recruitment is the main function of HR manager in every organisation. This process
involves giving application for the vacant position in the company and conduct interview rounds
then the selection of the most suitable individuals. Recruitment must be effective as it helps the
company to attain bests talent and no regret will be done in future. Therefore, Netflix has
unique and unusual recruitments practices. As the company does not recruit freshers which are
graduates whether from any university as the company does not focus on education and
qualification rather believe in person's experience. The culture of organisation represents that
people who have excellent technical knowledge are the suitable for job role whereas, no
requirement for those who are not eligible to adopt companies culture. Simply, it shows that,
Netflix has complex recruitment process which could create a negative impact on its image.
After taking interviews for about 8 hours, it is not necessary that they will get a job. It depends
on the decision of whole panel of 8 members (Esack, 2017). Interviews gets conducted in front
of all the senior managers, HR representative and core team members. The candidate must be
pass according to each members perspective to get selected. If any member does not satisfied
with the answer, they may loose the opportunity. There are a lot of questions get asked from a
candidate to take a personality check for the job role. It is the policy of Netflix to test the
capabilities of applicants until all the members get assured fully. This recruitment process is

effective for the company but may not be for the individuals who are seeking jobs. They may
loose confident and company would unable to analyse the actual talent of the individuals. Hiring
employees with these cultures norms and policies is significant for Netflix as they utilise
resources as much as it is required. It eliminate loss of recruitment process by putting time,
energy and cost through selecting candidates after a huge round of interviews. As far as this
process is vital for Netflix which h raise their job application by 217% (Ibrahim, and Hassan
2019). As there were 8600 employees in 2019. with the aim of growing internationally, Netflix
needs to make some modification in its recruitment policies to Crete less complex procedures
which will be adaptable for job seekers and company may find fresh talent easily. In addition to
this, the company has work benefit policies in which employee were get 10 vacation days and 10
holidays and some casual leaves. This work benefit also not found effective as employees are not
allowed to take leave as per their convenience. The company has formal tracking system which
keeps control on employees leaves. These policies effect on companies productivity as
employees may not get what they have expected.
Critically analyse the challenges and opportunities of effectively and efficiently developing
sustainable HRM system with focus on performance and ethical practices.
Every organisation have face many challenges as well as opportunities in order to create
effective and efficient sustainable HRM. Ethical practices ensure rights way of doing things
which does not harm people and productivity of organisation. Ethics play a vital role in
organisation image into market as these set sensible criteria of working which attract customers
as well as employees to take participate in organisation working. HRM practices made in terms
of enabling high performance criteria and create ethical standards under laws and legal
regulations. As in case of Netflix, the company was facing challenges in keeping employees
happy through informal policies it was not effective for all the employees apart from software
engineers. Therefore, these policies must be applicable for all as it is worth to provide the best
of one's capabilities (Khorana, 2020). A sustainable HRM system is a combination of all the
details regarding performance management, leave compensation and information regrading
salaries and compensation. As the HR manager of Netflix stated all the guidance about leave
policies in which leaves are granted as per the time duration and specific job roles. For
examples, employees who belongs to accounting and finance field are not allowed to get leave in
the initial start and end of the period for 30 days. In any case of emergency, employees needed

to approach HR manager regrading any doubts in HR system. Another sustainable way of HR
policies is that, Netflix emphasise on “act in Netflix interest” in which employees are supposed
to demand those benefits which are effective and formally required. As the company does not
support any travel expenditures which helps them to save cost and utilise it for high performance
achievers. It increases companies productivity and motivate employees. Although, Netflix
check on the the performance of employees who are working in companies interest by utilising
and saving money (Budhiraja, and Yadav, 2020). Those who were not in the list, Netflix find
some mistakes in hiring process and terminate them as soon as possible. This practice impact
negatively on organisation as it is not in rightful act to perform under ethical standards to
discard employees on the basis of minimum mistakes. The company has opportunity to make
these HRM practices more powerful and perform a positive role in internal market. This could
be done through giving all the rights and autonomy which an employee expect while working.
The curial requirement is to give job security as to establish operation in Japanese country,
people could not adopt the culture of hire and fire. Due to which, company may not get
effective employees and lacks in productivity in one country. This will impact in brand name
and unsustainable act towards society and its people. Netflix ,must apply organisation
behaviours theory which shows bureaucracy, scientific management and process management
approaches. As bureaucratic behaviours involves regulation of power as per legal authorities.
Employees must be aware about chain of communication and creates a centralised environment
of working which binds together to take decisions and come close to creative solutions.
Coordination, motivation and mutuality of interest, values of each ideas and thoughts are
required to manage human resources under ethical practices (Van Buren 2020). It is vital to
create an adoptable environment of working to effectively secure HRM within organisation
which could be done trough giving rights power to right individuals who are capable and
inspiration for others.
Please provide recommendation for Netflix, on how they can improve their policies and
practices?
Netflix could improve their policies and practices by doing some amendments in their
present workplace environment. As per the modern work culture and legal standards at
international level. There are certain recommendation that must be considered by Netflix:

 The company needs not to operate hire and fire policies at global level. They need to
focus on retaining employees rather than focusing of termination. An experienced
employees Is more effective who is already familiarise with working culture of
company.
 The HR manger needs to look at employees expectations which keeps them motivated
towards wok environment. It could be done through giving flexible working hours,
remote working, effective payrolls and other compensation without criticising others.
 The manager must look at improving capabilities and knowledge of employees rather
than t frequent termination. Regular trainings and support must be provided to utilise
their talent in a better way.
All these recommendation are fruitful for Netflix to operate at global level would be accepted by
every employees and give high performance in return.
CONCLUSION
From the above discussion in this report, it has concluded that a good HRM system plays
a vital role in keeping employees secured into organisation. Employee motivation, dedication
and their satisfaction are the most crucial factor to achieve by HR manager. They are the main
assets that enables success and growth of company. Therefore, the company needs to focus on
high performance but with effective policies and support them with flexibilities and required
benefits. So that, it is necessary to form policies with is easily applicable around all the
individuals and eliminate any gap in workplace culture. In addition this, the report has
influenced about a sustainable way of HRM practices that enables ethical culture in which
employees get treats with fair and honest decision in terms of power and authority. Employees
are meant to retain in this competitive environment so that, HR manger must focus on working
with effective organisational and motivational theories to get efficient results in workforce
satisfaction.

REFERNCES:
Books and Journals:
Davis, C. and Zboralska, E., 2017. Transnational over-the-top media distribution as a business
and policy disruptor: The case of Netflix in Canada. The Journal of Media
Innovations, 4(1), pp.4-25.
Ruiz-Navas, S. and Miyazaki, K., 2017, July. Adapting Technological Capabilities for World
Digital Business: The Case of Netflix. In 2017 Portland International Conference on
Management of Engineering and Technology (PICMET) (pp. 1-10). IEEE.
Agnihotri, A. and Bhattacharya, S., 2021. Netflix: The Firing Machine?. SAGE Publications:
SAGE Business Cases Originals.
Linhart, T., 2020. Portrayal of Journalists in Netflix'Series" House of Cards".
Esack, A., 2017. Content Is President: The Influence of Netflix on Taste, Politics and The Future
of Television.
Ibrahim, W.M.R.W. and Hassan, R., 2019. Recruitment Trends In The Era Of Industry 4.0 Using
Artificial Intelligence: Pro And Cons. Asian Journal of Research in Business and
Management, 1(1), pp.16-21.
Khorana, S., 2020. Home and Away vs Netflix: Inter-generational and Intersectional Asian
Australian Viewing Patterns. Journal of Intercultural Studies, 41(6), pp.694-707.
Budhiraja, S. and Yadav, S., 2020. Employer Branding and Employee-Emotional Bonding—The
CSR Way to Sustainable HRM. In Sustainable Human Resource Management (pp. 133-
149). Springer, Singapore.
Van Buren III, H.J., 2020. The value of including employees: a pluralist perspective on
sustainable HRM. Employee Relations: The International Journal.

Online
High Performance Work Systems, 2014. [online] Available through:
<https://gbr.pepperdine.edu/2014/12/high-performance-work-systems/>