Netflix Case Study: HRM Policies, Global Talent, and Employee Impact

This case study examines Netflix's Human Resource Management (HRM) practices, focusing on employee attraction, retention, and firing policies both in the United States and globally. It explores how Netflix's HR philosophy shapes these policies, emphasizing the hiring of experienced and capable individuals aligned with the organizational culture. The report also analyzes Netflix's approach to maintaining a high-performance workplace through sustainable and ethical HRM systems, considering variations in employment laws across different countries. It further discusses talent hiring and reward practices, including the application of human capital theory and incentive theory to motivate employees. The study concludes with recommendations for Netflix to enhance its HRM policies and practices for managing global talent effectively, suggesting improvements in areas such as training, compensation, and job security. Desklib offers a range of solved assignments and study resources to support students in their academic endeavors.

Human Resource
Management SHR018-2

Executive Summary
The overall report is based on the case study of Netflix which offers TV series, documentaries
and feature films across the variety of languages and genres. The report covers discussion about
HR philosophy that support in terms of employee attraction, retention, and firing policy as well.
The report also covers discussion about maintenance of company about its hire and reward
practices on global basis. The report also consist of high performance workplace which is based
on ethical and sustainable HRM system. In addition to this, it also include recommendations for
Netflix in terms of developing effective HRM policies and practices.

Table of Contents
Executive Summary ........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
1.How does Netflix HR philosophy help shape their employee attraction, retention and firing
policy and practices? Discuss first about this policy in the United States and then globally?....5
High Performance Work System................................................................................................7
3. How Netflix maintain a high performance work place based on a sustainable and ethicaql
HRM system in critical manner ...............................................................................................8
4.Recommendations for Netflix on developing effective HRM policies and practices to
manage their global talent.........................................................................................................10
The human resource management at Netflix is effective and efficient in its process both in
domestic as well as international market. It allows the organisation to have enhanced levels of
performance along with productive which is essential for their business operations. In addition
to this their effective human resource management allows them to have optimal HRM
policies and practices. Given below are some recommendation that will assist the organisation
in further HRM management at global level:...........................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management refers to the strategic approach in terms of effective and
efficient management of people in a company or organisation. It also help a business in terms of
supporting their business gain a competitive advantage. This is basically designed for purpose of
maximising employee performance in service of an employer's strategic objectives. In the
present report, Netflix case study is taken into consideration(MASANJA, 2019).This case study
basically focused towards overall hiring and firing policies of an organisation which has been
criticised on a very harsh basis. The case study also highlights about hiring of only capable
individuals regardless of their education and also about reward system of an organisation along
with their specific philosophy that supports in terms of talent hiring. The organisation has kept
their hiring and management system consist through their international establishment and
focused upon being consistent with them in order to ensure hiring of capable and highly skilled
individuals. The report will cover discussion about HR philosophy that support in terms of
employee attraction, retention, and firing policy as well. The report will cover analysis about
maintenance of company about its hire and reward practices on global basis. The report also
consist of high performance workplace which is based on ethical and sustainable HRM system.
In addition to this, it also include recommendations for Netflix in terms of developing effective
HRM policies and practices.
MAIN BODY
1.How does Netflix HR philosophy help shape their employee attraction, retention and firing
policy and practices? Discuss first about this policy in the United States and then globally?
The management at Netflix is focused upon hiring experienced employees rather than
newly graduate from students from colleges (Hu and et. al. 2021.).The company aims for hiring
individuals who are enough self capable. The organisation is not majorly focused towards
qualification of employees and if management is focused towards hiring of individuals are
mostly aligned with organisational culture and also have technical knowledge as well. This
allows an organisation to ensure that they are able to hire talented individuals in an effective
manner.

It has been observed from case study that they have harsh hiring and firing process and
the management also believes that they are going to cut those people who are not effective in
terms of their performance at work place. The company's policy is that to hire only capable
employees in order to attract large number of employees on yearly basis. This kind of policy
seems to be harsh where management at Netflix has reported overall turnover at 15% out of
which half has been involuntary (Shahreki, 2019). Human capital theory has been applied in
order to hire employees into effective manner and it is defined into following manner with
context to Netflix company:
Human capital theory
The human capital has been defined as an intangible asset which is relative to an
individual talent along with its experience. It is considered as an economic value for an
organisation and it is that kind of quality that cannot be measured into effective manner. The
human capital provides an organisation with innovation and creativity so that they can perform
into well mannered way. In context to Netflix, human capital is an essential element in terms of
attracting , retaining, firing policy and practices in United States. The effective human capital
allows an organisation the ability to ensure that majority of the hiring consist of employees who
will perform at their highest level. There are different kinds of human capital and it is defined
into following manner in the context of Netflix:
Knowledge Capital: This kind of human capital basically consist of trade school
education along with a degree. This kind of capital basically consist of abilities of an individual
to have higher level of knowledge and work experience as well. Knowledge capital basically
focused towards intelligence and situational knowledge as well(Alsarhan and Valax, 2020). In
context to Netflix, this form of human capital allows the organisation to hire capable employees
who have high level of experience and needs to ensure that they have employees who can
perform up to their highest level. This aspect of human capital is also effective in terms of nature
when it comes towards their hiring policy on the global basis. The knowledge capital plays a
very important role in terms of organisational level which is focused towards hiring capable and
well experienced employees.

Social Capital: This kind of capital is based on the aspect of relationship with professional
network and health of an individual that provides them various abilities in order to be effective in
terms of their task. In context to Netflix, the organisation has utilised the hiring policy of Netflix
as the management is more focused towards on hiring the individuals that can provide optimal
social capital(Iasiello, Crooks and Wittman, 2020). It has been effective when organisation has
hired on global basis then then they should be that much flexible so that they can adapt different
kinds of culture.
Emotional Capital: This kind of capital which is basically based on emotional intelligence
along with its creativity. It allows an individual to have the ability to solve problems along with
the ability of critical thinking. In addition to this, it also develop in terms of leadership
behaviour among individuals. In context to Netflix company, the organisation is focused towards
hiring individuals who are emotionally enough capable along with its creativity. This allowed an
organisation to hire the best creative individuals in United States as well as on the global basis.
The organisation needs to ensure that they are able to hire individuals who have effective
leadership along with optimal critical thinking skills in order to have higher productivity
2. How does netflix maintain its talent line hire and reward practices globally, given that
employment laws differ globally?
The concept of talent hiring plays a major role in the process of recruitment of any organisation.
It allows a business to ensure that their employees are efficient and possess some skills and
abilities which is essential for their effective performance and productivity. In context to Netflix,
it conducts effective and proper talent hiring programmes to hire individuals who are
experienced in their area of job(Chen, Chuang and Chen, 2018). The organisation promotes
reward policies like vacations along with incentives which they provide globally. The talent
hiring at Netflix can be examined through evaluating high performance work system which is
discussed below in context with Netflix along employment laws at global level:
High Performance Work System
High performance work system creates an environment that encourages great involvement of
employees and provides them responsibilities within a business organisation. In context to
Netflix, it sees the employees at valued partners and focus upon giving importance to them in
order to ensure their efficient performance and contribution towards the organisation. The main

objective of this system is to ensure that the individuals which work for them are determined and
possess high calibre.
Ensuring recruitment of efficient employees: This feature identifies the traits and capabilities
of an individual and hires them according to their skills and abilities. In context to Netflix, the
organisation is capable of conducting effective and proper talent hiring keeping in mind the
global laws(Timming, 2019). The management ensures that their employees are ready for the
extensive tasks that needs to be fulfilled and maintaining their high level performance.
Conducting training programmes: The organisation provides proper training to enhance the
skills of efficient employees and teach effective techniques to the less skilled employees. In
context to Netflix, the organisation conduct training programmes and hires highly qualified
trainers for the purpose of learning. This improves their performance and increase productivity of
the organisation.
Fair compensation: The high performance work system enables the organisation to measure the
performance of its employees. This helps the organisation to offer appropriate compensation to
the employees and motivate them. In context to Netflix, it provides great experience as well as
optimal compensation to their employees which motivates them to perform better. This also
boost their morale and provides them an objective to work towards organisational goals.
Compensating employees fairly attracts talent at global level and enhance the confidence of
people working in the organisation.
Providing security for job: This feature pays attention on offering high security to the
employees in the process of talent hiring(Cuskelly and et. al., 2021). This helps an organisation
to create a sense of protection in the minds of employees and helps in making friendly relations
between each other. In context to Netflix, the organisation provides great amount of security to
its employees by allowing them various perks and benefits. It ensures that maximum efficient
individuals join their organisation and feel secure about their jobs. This motivates employees to
work for the organisation and helps in attracting large number of individuals at global level.
3. How Netflix maintain a high performance work place based on a sustainable and ethicaql
HRM system in critical manner
It is difficult for an organisation to have high performance at its workplace in order to
ensure that all its operations are effective as well as effective in their functioning. Higher
performance at workplace allows an organisation needs to ensure that their employees have high

level of capabilities which are necessary to full fill their all demands and requirements. With
respect to Netflix, the organisation is able to maintain high level of performance within the
organisation to have effective motivation(Ahmad and et. al., 2021). The organisation also
provides certain facilities such as paid vacations which are majorly determined through their
positive move in order to keep motivated in terms of fulfilling their roles and responsibilities. It
is necessary to have basic understanding about how Netflix has maintained high performance at
work place so incentive theory has been applied and it is defined into following manner:
Incentive theory: This particular theory explains that individuals feel motivated by recognitions
along with its rewards. The theory also states that individual display certain kinds of behaviour in
order to achieve effective results. There are certain elements of theory and its is defined into
following manner in context of Netflix company:
Bonus: This incentive refers to to reward employees are provided for their higher level of
performance as well as productivity. It allows an organisation to keep employees motivated in
periodic intervals. With context to Netflix, the organisation is focused towards providing bonuses
to the high capable employees and this will allow the management to have a higher level of
performance at their work place that ensures about the productivity of the organisation is
maintained.
Praise: This is an incentive which allows an organisation to recognise the efforts and
performance of the employees(Somarathna, 2020). This kind of incentive allows the business to
ensure that its employees perform in an effective manner which enhances the performance into
result oriented manner. In context to Netflix, the organisation praise their employees in order to
keep their employees motivated as well as maintain a higher level of performance at workplace
in an optimal manner.
Opportunity: This form of incentive refers to an individual receiving various opportunities in
an organisation such as new assignments and positions within a business. This allows an
employee to be motived and improve workplace performance in an optimal manner. In context to
Netflix, the organisation recognizes the ability and efforts of their employee and provide them
effective opportunities in order to keep them motivated. This allows the company to ensure that
their workplace performance is enhances .

Promotion: this form of intensive allows the organisation to promote their capable and highly
talented employees at crucial position within the organisation. This results in enhancing the
overall performance at the work place leading to high level of productivity(Liu, Mei and Guo,
2020) In context to Netflix, the company provides promotion to their employees on the bases of
their performance. Through their talent hiring all their employees re able to provide high level of
performance leading to effective motivation and increased workplace performance.
4.Recommendations for Netflix on developing effective HRM policies and practices to manage
their global talent
The human resource management at Netflix is effective and efficient in its process both in
domestic as well as international market. It allows the organisation to have enhanced levels
of performance along with productive which is essential for their business operations. In
addition to this their effective human resource management allows them to have optimal
HRM policies and practices. Given below are some recommendation that will assist the
organisation in further HRM management at global level:
Anti- harassment policy:
This particular policy will allows the management at Netflix to ensure that their
employees do not face any form of harassment form either the employee’s or management in
order to maintaining their performance and productivity at high level. This allows the
organisation to develop a positive relation with heir employees and ensure high level of
motivation.
Safety and health policy:
The policy of health and safety will play a major part in the development of effective
HRM policy and practices for the organisation. This will allows the organisation to effective
keep their employees safe from issues that can occur at workplace. In addition tot his it will also
help the organisation to negate any legal issues relative to their HRM operations when it comes
to the safety of their employees.
Employment condition policy:
It is crucial for the management at Netflix to focus upon employee conditions policy
when developing enhanced HRM policies and practices. The policy will help in ensuring that the
perspective of employees is taken into considerations when developing and taking vital decision
within the organisation. In addition to this the organisation is able to better understand the overall

behaviour of their employees which enables the HR manager to take effective steps when it
comes to motivating and guiding employees towards high level of performance and productivity
CONCLUSION
The above stated report concludes that human resource management plays a very
important role at organisational level. It has been concluded from case study that it is difficult
for an organisation to have effective human resource management in order to maintain and
enhance performance of human resource operations. It has been determined from case study that
the chosen organisation has strict siring and firing policies within their business operations. The
organisation forces on hiring capable individuals irrespective of their education level. In addition
to this , it was concluded that the organisation pays high emphases on its workplace performance
even at global level. The report also provide some recommendation that the organisation can
adopt in order to further enhance their HRM practices as well as polices in their global
operations.

REFERENCES
Books and Journals
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management research and practice in Taiwan with comparison to select economies in
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Cuskelly, G. and et. al., 2021. Volunteer selection at a major sport event: A strategic Human
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Hu, B. and et. al. 2021. The influence of human resource management systems on employee job
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Somarathna, K. U. S., 2020. An agent-based approach for modeling and simulation of Human
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Timming, A. R., 2019. Human Resource Management and Evolutionary Psychology. Edward
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