SHR016-2 People Resourcing: Netflix Case Study & Development

This report provides an analysis of Netflix's people resourcing and development strategies, based on a provided case study. It examines the company's unique HR practices, including its 'hire and fire' policy and focus on retaining high performers. The report evaluates internal and external factors influencing resourcing and development using SWOT and PESTLE analyses. Furthermore, it analyzes the labor markets of the USA and Japan, offering recommendations to Netflix on how to remain competitive in these markets, including adapting hiring practices to local conditions and developing new HR policies to address challenges posed by unexpected market events and competitors. The analysis concludes by emphasizing the importance of continuous advancements and reforms in people resourcing and development for Netflix to maintain its competitive edge.

NETFLIX CASE STUDY
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
PEOPLE RESOURCING AND DEVELOPMENT STRATEGIES AT NETFLIX-..................3
TASK-2............................................................................................................................................5
EXTERNAL AND INTERNAL CONTEXTS INFLUENCE RESOURCING AND
DEVELOPMENT-.......................................................................................................................5
TASK-3............................................................................................................................................7
LABOUR MARKET ANALYSIS..............................................................................................7
TASK-4............................................................................................................................................8
ADVISE TO NETFLIX ON THE BASIS OF LABOUR DATA OF USA AND JAPAN-........8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Netflix is one of the global organization which is providing subscription based streaming
services to its customers (Walford-Wright and Scott-Jackson, 2018.) In the report on the basis of
the cash study on Netflix using academic theories people resourcing and development in the
company will be defined. Internal and external factors which are impacting people resourcing in
the organization will be evaluated by using SWOT and PESTLE models. At the end of the report
the labour markets of USA and Japan will be deeply evaluated and on the basis of the data
suggestions are extended to Netflix to remain competitive in the market.
TASK-1
PEOPLE RESOURCING AND DEVELOPMENT STRATEGIES AT NETFLIX-
Netflix is one of the biggest internet subscription service giant which is getting operated
across the world. Due to wast operations there is a huge number of workforce is working in the
organization. Netflix generally hires people with some experience, it avoids hiring new talent
due to immense need of training and development. So the organization is worldwide following
policy of hire the experience.
Hire and fire strategy- The organization is well-known for its aggressive hiring policy in which
it hires people and when it does not have much work or the people are not as efficient as required
for the job then fire them.
Retaining high performers' strategy- In the organization people with higher performance are
given priority, if they got developed and are performing on their merit then would be retained
otherwise will be fired. It makes their workforce up to date and high in term of efficiency.
Do not Hire Fresh college- In this practice it aims only experienced people who possess
experience of working. “Theory of Experiential Learning” (Kirby, 2020.) says person learn from
experience so such people should be recruited.

Work on site policy- While recruitment it is ensured that the joiners must ready to work on site
rather than the place of their preference. It believes that employee can not learn everything by
training some things he learns by the surrounding so “Theory of Social Learning” (Kapur, 2021)
is taken into consideration while recruitment.
Work from remote location- Such people are prohibited in the company who wants to work
from remote location are not hired since which people resourcing company hires only such
people who can work from the authorized locations of the company.
For development purpose the organization is having a few theories which are as-
Transparent pay policy- Every employ can easily see the salary of other employees. Company
believes that keeping such data confidential is not good since if other employees will see
someone making good bucks they will get driven to replicate the same.
Weekly employee surveys- Continue HR survey helps to identify the people with poor
performance so as per the requirement company may go for development or training programme.
So can enhance their performance.
Work benefit policies- The organization is providing them good range of such holiday and also
having “Paid time off policy” so can provide better to them.
Formal time off policy- So people may work as per their ease no need to abide formalized time.
Performance improvement plans- So can hike the level of employees which will ultimately
result their development.
So all such strategies are being followed by Netflix to hire and develop their employees.

TASK-2
EXTERNAL AND INTERNAL CONTEXTS INFLUENCE RESOURCING AND
DEVELOPMENT-
SWOT analysis for Netflix Ltd-
components
Strengths  Flexible business model helps it to reach a wast number of
people.
 Strong brand of the organization attracts potential employees
from a range of geographical locations.
 Large customer base is helping to recruit better talent (Merritt
and Zhao, 2021.)
Weaknesses  Offers third party content which reduces its grasp on the
employees that's why not able to implement development
strategies in fully fledged manner.
 Revenues are largely coming from US market that's why the
employee hiring is US based, which is restricting the way for
other eligible employees from different parts of the world.
Opportunities  Expansion in global market offers opportunity to hire the best
talent from different nations. It could help to do betterment of
people resourcing and development strategies.
 Use of technology and modern tools of employee resourcing
may open new doors of opportunities for Netflix.
Threats  New laws and tougher labour laws of different nations may place
threats before Netflix.

 Competitors have already ensured digitalized and upgraded
people resourcing methodologies which may give them upper
hand in the market and may create threat for Netflix.
PESTEL analysis for Netflix Ltd.
components
Political  Different governments of the nations where it is operating
business are putting their policies on ease about employee
resourcing of different organization.
 For the purpose of increasing employment opportunities
governments are more likely to promote such organization.
Economical  The economy is at present not performing good yet the labour
market in many nations offering good quality labour so it would
help the organization to go for better employee resourcing.
 After pandemics there would be great availability of employees.
Social  As their policy they are giving 2% (Fojtíková, 2020.) of annual
income to black community, such actions may lead better talent
toward the organization.
Technological  Now more people prefer online platforms for getting recruited.
 By using technological tools may notch up better employee
development strategies.
Environmental  Higher environmental compliances may reduce the fund
allocation for employee development strategies execution.
Legal  Lows are now laid down to favour higher development of

employees.
 Labour laws of global organization are also making such entities
to work for people welfare (Dinh, 2019)
TASK-3
LABOUR MARKET ANALYSIS
Labour market which is also known as job market. It is the study to know various aspects of
labour market and how they work. For Netflix USA and Japan are taken into consideration for
analysing labour market.
USA labour market-
USA labour market is dynamic in nature and also heavily affected by CoVID-19.
Unemployment rate jumped higher after unprecedented circumstances took place. From
February 2020 to April 2020 in the period of three months unemployment rate jumped up from
3.5% to 14.8% which is strong evidence of severe impact of the pandemics.
Total working hours in USA went down by 17% it shows that the market was facing
drastic slow down and labour was not able to achieve their potential. Even in the global
economic crisis of 2008-09 the labour market was well stable. Unemployed workers to job
opening ratio in march was 1.2 which is worst after 2009 (Aldieri, 2019)
The job growth in USA was averaged 537000 per month in 2021. In January 2022 the
unemployment in IT sector is around 4.2% which is increased from last couple of months.
Highly skilled IT professionals are also facing problem to get recruited on the position they
deserve (Lovenduski and Hills, 2018)
USA is the biggest market in term of revenue for the organization, which accounts more
than 67 million subscribers for Netflix so the demand of more employees in this market is
relatively higher.

According to “The Bureau Of Labour Statistics” the projection is made that labour force
participation rate will be continuously declining from 2019 to 2029, this is not a good trend for
the labour market of USA.
Japan Labour Market-
In 2019 the labour market of Japan was crossing all the limits of employment rates and
crossed record of 1968 but then the hit of CoVID-19 changed the dynamics but not as bad as
happened in USA. They projected just 2% decline in the job market. Even the market of Japan
was performing more than the average suggested by OECD (Kano,2018.)
Employment rose by 0.2% in January 2021 which is one of the fastest recovering labour
market in the world. Job to applicant ratio in Japan rose from 1.05 to 1.10 indicates that the
labour market of japan is going upward unlike USA. The market is having rigorous need to hire
the people with higher skills in order to meet the requirements of various industries.
New jobs are not being created with that speed which is expected in the nation yet the job
opportunities are higher than any such nations even after the attack of pandemic which severely
impacted global labour market.
IT industry in Japan is not as developed as it is in USA, yet it is one of the biggest IT
market. Software sector alone accounts more than 15 trillion Japanese yen as of 2018. So the
need of IT professionals in Japan is also very high (Fukao and Perugini, 2018)
TASK-4
ADVISE TO NETFLIX ON THE BASIS OF LABOUR DATA OF USA AND JAPAN-
For Netflix it is essential to grab better workforce in the global market. It is also having
rigorous need to adapt better people resourcing and development strategies so can not only raise

its ability to generate growth but can also be competitive in the global market with greater and
more satisfied, developed workforce so with this regard the following suggestions or advices are
extended to Netflix-
In different markets Netflix is suggested to go with different practice. As above in labour
market analysis it is seen that the job market of Japan is performing good but there is lack of new
job generation so in such market Netflix may hire young and green talent. The policy of “Hiring
only Experienced” should be put apart (Morris, Delbridge and Endo, 2018)
As it is seen in the case study that the workers of Japan are not able to be fit in the
business or work culture of USA. They are facing problem in getting fit there. It is not only
hindering the way of employee development strategies but also toppling the growth of the
organization. It is suggested to Netflix to come up with “New Business Culture Map” so not
only help in resourcing better workforce but will be paving way for their development.
In USA, it is suggested to raise its people resourcing programme through digitalized
methods. Since after 2019 there is lack of jobs in IT sector and using social media platform by
job seekers is becoming general thing so Netflix is suggested to go for digitalized operations to
carry out people resourcing and development.
After hit of pandemics the Labour markets of both Japan and USA are facing problem of
unexpected events in the market, perhaps the impacts are different so Netflix is suggested to
introduce new Human resource development policy so not only grab attention of new job seekers
but may also inculcate better development of such employees.
Above suggested recommendations will be helping the organization to be competitive in
the labour market, Since by bit more advancements the key competitors are in position to place
bigger challenges any time. The competitors like- HBO Max, Disney Plus, Amazon Prime
Video, Peacock etc (Andrews, 2020)

The competitors of Netflix are having better employee resourcing and development
strategies and with their strong labour market presence both in USA and Japan. So it is
recommended to the organization to go for more advancements and reforms in people resourcing
and development in order to encounter the competitors and remain competitive in the labour
markets. Above given suggestions will help it to position itself in the labour markets.
CONCLUSION
From the report above it can be concluded that Netflix is practising unique type of people
resourcing and development strategies in the organization. The report also presented all external
and internal factors which were impacting people resourcing and development strategies of the
entity. At the end of the report it had been seen that what was the dynamics of the labour markets
of USA and Japan. On the basis of gathered data some advices were also shared to the Netflix
which would be Deeping them competitive in the labour markets of both Japan and USA.

REFERENCES
Books and journals-
Aldieri, L., 2019. Is green innovation an opportunity or a threat to employment? An empirical
analysis of three main industrialized areas: The USA, Japan and Europe. Journal of
Cleaner Production. 214. pp.758-766.
Andrews, D., 2020. The career effects of labour market conditions at entry.
Dinh, T. M. T., 2019. A marketing strategy for sustainable growth: case study Sky-media
company limited.
Fojtíková, V., 2020. An Analysis of an Application of a Marketing Mix of the Company Elisoft,
sro.
Fukao, K. and Perugini, C., 2018. The long-run dynamics of the labour share in Japan (No.
672). Institute of Economic Research, Hitotsubashi University.
Kano, A., 2018. Womenomics and acrobatics: Why Japanese feminists remain skeptical about
feminist state policy. Feminist Encounters: A Journal of Critical Studies in Culture and
Politics. 2(1). p.6.
Kapur, R., 2021. Strategic Resourcing as Key Aspect of Strategic Human Resource
Management. International Journal of Information, Business and Management. 13(4).
pp.47-56.
Kirby, T., 2020. Efforts escalate to protect homeless people from COVID-19 in UK. The Lancet
Respiratory Medicine. 8(5). pp.447-449.
Lovenduski, J. and Hills, J. eds., 2018. The Politics of the Second Electorate: Women and Public
Participation: Britain, USA, Canada, Australia, France, Spain, West Germany, Italy,
Sweden, Finland, Eastern Europe, USSR, Japan. Routledge.
Merritt, K. and Zhao, S., 2021. An innovative reflection based on critically applying ux design
principles. Journal of Open Innovation: Technology, Market, and Complexity. 7(2).
p.129.
Morris, J., Delbridge, R. and Endo, T., 2018. The layering of meso‐level institutional effects on
employment systems in Japan. British Journal of Industrial Relations. 56(3). pp.603-
630.
Walford-Wright, G. and Scott-Jackson, W., 2018. Talent Rising; people analytics and
technology driving talent acquisition strategy. Strategic HR Review.
1

2