Netflix Case Study: HR Practices, Recruitment, Sustainable HRM

This case study delves into Netflix's human resource practices, evaluating their hire and fire policies, recruitment processes, and the development of a sustainable HRM system. It critiques Netflix's preference for experienced hires over fresher talent and its limited investment in employee training...Read More

NETFLIX CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Human resource practises regarding Hire and fire policies of Netflix........................................3
Critically analysis of recruitment process of Netflix .................................................................4
Critical analysis of sustainable HRM system .............................................................................6
CONCLUSION................................................................................................................................8
Recommendation........................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The human resource practice is concerned with strategic operation of HR. In this process
guidance is provided to manage the company employees. There are lots of roles and
responsibilities that are performed by this department so that employees within the company
remain more motivated and engaged (Baron and Kreps, 2021). Mainly the human resource
department is focussed to recruit most appropriate employees in the company. Training and
recruiting them so that they can contribute more in the common goal. Netflix is an American
production company who uses to provide subscription streamline facilities for large number of
films and TV serials. Company is having its headquarter in Los Gatos, California in this report
the human resource practise are evaluated in Netflix context. This report will evaluate the hire
and fire policies of Netflix, and they operation globally. Further the recruitment practises of
Netflix is discussed, the way human resource manager are using to select the candidates within
the company. Moreover, the challenges and opportunities when developing sustainable HRM
system which is trying to ethical practises.
MAIN BODY
Human resource practises regarding Hire and fire policies of Netflix
Employing any individual within the company or release that person from the
employment. These practises are used by the company at the time when the company have to
give benefits to the employees (Perez Lopez, Montes Peon and Vazquez Ordas, 2017). The
hiring is basically policies to add worker within the company to achieve the respective target
whereas firing can be explained as reduction of workers that are not working properly as per the
needs. The Netflix is making use of its American culture in the market where there are
expanding. As they are having their branches in Asia, united states, yet they are continuing with
the same culture and HR Policies. The company is usually not making use of fresher talent in the
company they are more preferring the experience people in the company. The people who are
want to work remotely from their location are not recruited by the Netflix because the human
resource policies are not allowed the employees in the international market.
The Netflix uses to fire the employees when they found the individual is not performing
as per the need and also lacking in its skills. The company not believe to provide training and
development within the company. However, as per the human capital theory state that training

and educating in the organization assist to improve the knowledge and skills of the individual
which will contribute in better productivity (Iqbal and et. al., 2020). This approach defines the
efforts that manager of the company put to build the skill and knowledge of employees then they
are helpful to increase the productivity as well as profit within the company. Here in Netflix the
manager not uses to put any kind of efforts to build the knowledge and skills of individual who
are working for the company. They just recruit more experienced and skilled people from outside
which create and bad culture within the organization because the new individual are not known
the company as existing employees know about the company.
In the United states is also having the branches of Netflix, and they are continuing their
same culture they are not concern about the people and their preference. Their hiring is
completely done as per the policies they have make not focussing on the budget friendly and
retention of the employees within the company. The company is offering adequate services to the
employees within the company. They preference is to hire more effective employees that can
enhance the productivity and performance of the Netflix and they also not have to train them
(Blanco-Mazagatos, de Quevedo-Puente and Delgado-García, 2018).
Netflix is hiring stunning and outstanding employees within the company who are
effective in the respective field. Yet the opportunities for the new comers are very limited for the
in-experience people. Netflix core values and culture are expressed in the every country where
they want to go. The company have 8 percentage of firing rate which shows when the Netflix not
have need of the person then they directly fire that employee. The Netflix is using its own culture
when they are operating in multinationally. The company is hiring in similar manner and also
train them accordingly too same policies which are make by the human resource.
Critically analysis of recruitment process of Netflix
Netflix are basically trying to recruit employees who are expertise in their field and
having experience which is required for the similar position in the company (Margherita and
Bua, 2021). The company is trying to recruit the candidates who are more self- sufficient to
perform their duties. Netflix is not focussed on the qualification of the candidate rather than this
the experience of individual is preferred on the priority basis. The employees of the company are
also had knowledge about the recruitment process that education and the degree of the candidates

are not more than the experiences they have in the related background (Zaid, Jaaron, and Bon,
2018).
The human resource of Netflix knows when an individual is working around 10 years in a
similar field then its qualification level does not matter at all. They are more engaged in hiring
those individual in the company who can fit more appropriate in the culture of the company. The
main skills which are prioritized in this is technical people who are having knowledge.
According to the inspection it has been found that half of its interview organized by the company
is to know the culture of Netflix is compatible to the employee and to check the technical support
they can provide to the company. The interview process is huge it takes lots of time which
include personality check in which they inspect the individual fit in the company.
In the recruitment process the human resource representatives, management senior and
members core team these people of the company are decided the individual in the interview is
effective. When a member of the recruitment team disagree with the individual then that
candidate is not been appointed for the Netflix (Cornwell, Schmutte and Scur, 2019). The
company is not being using different policies while that are operating internationally. In the
month of Feb (Järlström, Saru and Vanhala, 2018). 2015 and 2016 the job application are
increase by 217 percentage. In the year of 2019 around eight thousand people are employed by
the company and these numbers are increase regularly. As the company is growing
internationally so the employment required is also needed every year more. So while recruiting
the candidates the company firstly check weather the individual fits in the organizational culture
of the company or not.
Whereas the Netflix is not uses to recruit such individual who are not able to adjust
according to the culture of the company. There are some aspects where the culture of Netflix is
lacking because the different nation is having different culture and company only work with its
own culture. There are very fewer people who are able to adopt the same culture and perform
their duties within the company. People want that Netflix should follow their country culture so
that they can perform more effectively in the company. The recruitment process of Netflix is
being more complex and long as when the Netflix take the interview after that candidates have to
wait for 2 weeks to inspect the company that individual is suitable or not for Netflix. As the
company not uses to recruit the fresh talent so it becomes a disadvantage for candidate that they
can not show their capabilities in the Netflix.

Netflix practises of terminating the employees when they are not matching the skills as
per the requirements. This develops a negative environment in the people who need to join the
company internationally (Albert, Da Silva and Aggarwal, 2019). Candidate will not apply in
such company where they are not get any kind of security regarding the job. With this the
existing employees who are working also gets demotivated they also feel insecure related to their
job which will lead to low production. When the employees of Netflix are less motivated then
productivity within the company tend to reduce.
Critical analysis of sustainable HRM system
Issues and implication
Their are number of sustainable human resource management system practise which are
not appropriate according to the employees. Some issues that are identified are:
Training and development: Netflix not uses to provide any career development training to the
employees when the trade change in the market (Agrawal and Jain, 2018). When the company
feels that they are not effective and efficient then they are not organizing any kind of training and
development program for them they just provide then a package and terminate them further.
With this practise many talents and effective candidates of company for outside the company.
This develops more ineffective ethical practise of the Netflix.
Centralized working: The working in Netflix is done in America as they are not uses to prefer
the candidates outside or internationally. With this they are not able to recruit the more effective
candidates who are present outside they are just recruiting the people of America. This also
create a different type of culture for the company as American people are always on priority to
select the needed individual for the company.
Transparent pay: Netflix is having the candidates who are working in for Netflix have
transparency in their pay or salary. All the employees at similar level are having knowledge
about the pay of each other. So when the employee who is working in Netflix having increment
in its salary more than its colleagues and all knows about that. This will develop a negative
culture within the Netflix the remaining people are not agreed to do so (Abbasi, Tahir, Abbas and
Shabbir, 2020).

There are several implications of such issues that can be discussed as follows. When the
company will not train its employees then they can not develop the skills as per the requirement.
There are number of approach which states that the training and development programs which
are given to employees are being important to reskilling their skills. Human capital theory is
offers to provide the training on regular basis to the employees so that they can maximize the
profit and reduce the wastage of resources (Scur, Schmutte and Cornwell, 2019). Netflix is not
using to train its employees and just recruit the new employees this will make the employees
demotivated. Netflix is recruiting the employees from America then are not using to recruit the
outsiders. With these employees who are more effective and efficient are not being characterized
and the selection of employees are done in limited candidates. As per the AMO approach is
aligned with the able employees who are effective to perform the duties are involved in the
recruitment process further they motivate them and provide the opportunities. Rather, then this
Netflix human resource is limited to their area people and other include to other people to
become the part of the company (Bacon and et. al., 2020). They are not motivating any
employees and recruiting the experienced people who are motivated and inspired. The
employees of Netflix are less motivated due to partial environment of the company and the
culture of the company is also carried by the company with them.
The motivation of the employees is also important aspect within the company. As per the
Alderfer's theory of motivation there are three needs that are required by employees to remain
highly motivated. When the individual get safety and pay from the organization then they remain
motivated. The employee also need some friend and belongingness within the company, and they
also need respect and recognition (Kollitz, Ruhle and Süß, 2019). The final need of employee to
maximize the potential and in Netflix the employees are not being trained and developed. When
they are in organization they have to come with complete knowledge and skilled which are going
to help Netflix and when they are inappropriate according to the needs of the company then
Netflix uses to termination.

CONCLUSION
This report concludes that the human resource practices involve number of activities that
assist in effective control of employees within the company. The human resource management in
Netflix is comparatively different as they are hiring and firing the experienced people who are
having better knowledge and skills. The termination policies of Netflix is very frequent and
when individual is not effective in performing the given work then they are fired from the
company. Further it concludes that the recruitment practises of Netflix is partial because they are
recruiting the people from America and not preferring candidate from other nation who want to
perform the task on remotely. With this the effective talent which can join the company at less
pay is not able to join the company and the resources are not optimally utilized. Moreover, the
Netflix issues such as they are not providing any kind of training programs for the employees,
and they are just try to recruit the new employees and terminate old staff. This practise of the
company is creating a negative culture within the company. The employees also know about the
pay that their colleagues are getting for the same work it also develops less effective
environment because employees who are not getting equal pay are tend to demotivate and its
performance also get influenced by the same. The approach such as human capital and AMO
approach are not implemented in the Netflix this making the process less effective. They are not
train the employees properly and having centralized working are cutting the opportunities for the
candidates which are having skill and knowledge that can enhance the productivity of the
company.
Recommendation
To improve the human resource practises of the Netflix the company have to work on
different aspect so that more appropriate candidate can be select by Netflix. As the company is
not including any kind of training and development for its existing and new employees of the
company. When Netflix will include this process to train employees then they will improve their
skills and knowledge which is effective for company to gain advantages. The company can
reduce the cost to recruiting new employees, it improves the employee retention within Netflix.
As the company can also enhance its productivity when they will start recruiting the employees
from international market. As there are different nations where people are more effective in
performing their work at comparatively fewer prices so Netflix can improve the use of its

resource with the same. The pay system of the company is more transparent and this is creating
an inappropriate culture within the employees so Netflix HR managers can develop the policies
to not disclose the pay which is provided to them. With this all the employees will feel similar,
and they are more connect as well as motivated towards the work. Moreover, HR managers
should work to inspire the employees of the company on regular basis so that they are more
engaged towards the work of Netflix and optimise the is use of resources.

REFERENCES
Books and Journals
Baron, J.N. and Kreps, D.M., 2021. Consistent human resource practices. California
Management Review. 41(3).
Perez Lopez, S., Montes Peon, J.M. and Vazquez Ordas, C.J., 2017. Human resource practices,
organizational learning and business performance. Human Resource Development
International. 8(2). pp.147-164.
Iqbal, S. and et. al., 2020. Human resource practices and organizational innovation capability:
role of knowledge management. VINE Journal of Information and Knowledge
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Blanco-Mazagatos, V., de Quevedo-Puente, E. and Delgado-García, J.B., 2018. Human resource
practices and organizational human capital in the family firm: The effect of generational
stage. Journal of Business Research. 84. pp.337-348.
Margherita, E.G. and Bua, I., 2021. The role of human resource practices for the development of
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Cornwell, C., Schmutte, I.M. and Scur, D., 2019. Building a productive workforce: the role of
structured management (No. 13908). CEPR Discussion Papers.
Albert, L.J., Da Silva, N. and Aggarwal, N., 2019. Demographic Differences and HR
Professionals' Concerns over the Use of Social Media in Hiring. e-Journal of Social &
Behavioural Research in Business. 10(1). pp.1-9.
Agrawal, A. and Jain, N., 2018. Determinants of Service and Manufacturing Production and
Exports: A Cross-Country Analysis. Available at SSRN 3305656.
Scur, D., Schmutte, I.M. and Cornwell, C., 2019. Building a Productive Workforce: The Role of
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Kollitz, R., Ruhle, S. and Süß, S., 2019. Recruitment practices under scrutiny: A latent-profile
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Human Resource Management. 33(3). pp.167-196.
Bacon, R. and et. al., 2020. Increasing Employability Through Programmatic Sustainable
Assessment Practices and Familiarity with Recruitment Practices. In Enriching Higher
Education Students' Learning through Post-work Placement Interventions (pp. 267-289).
Springer, Cham.
Abbasi, S.G., Tahir, M.S., Abbas, M. and Shabbir, M.S., 2020. Examining the relationship
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Järlström, M., Saru, E. and Vanhala, S., 2018. Sustainable human resource management with
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Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
and green supply chain management practices on sustainable performance: An empirical
study. Journal of cleaner production. 204. pp.965-979.