Netflix HRM: Analysis of Talent, Rewards, and Performance System

This report examines the Human Resource Management practices at Netflix, focusing on talent acquisition, retention, and firing policies. It explores Netflix's HR philosophy, which emphasizes employee skills and capabilities, a positive work environment, and competitive compensation. The report details how Netflix manages talent through motivation, flexibility, and engagement, alongside its reward policies that include commission-based approaches, parental leave, and comprehensive benefits. Furthermore, it assesses Netflix's high-performance culture, highlighting its global reach, innovative technology, and ethical HRM system. The analysis also provides recommendations for further developing HRM policies to sustain Netflix's competitive edge. Desklib offers a range of similar solved assignments and resources for students.

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASKS.............................................................................................................................................2
1. HR philosophy to attract, retain and firing policy and practises...........................................2
2. Netflix manges its talent and reward policy .........................................................................4
3.High-performance of Netflix on the basis of sustainable HRM system..................................6
4.Two recommendations for Netflix in order to develop HRM policies ...................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

INTRODUCTION
Human resource management aids the management to design the functions of an
organisation such as recruiting, hiring the best candidates and interviewing. This project will talk
about the various theories and practices of HRM to examine the scenario of workplace for
professional, ethical and effective HRM . The chosen company for this project is Netflix. It is
founded in 1977 in California, USA which offers the streaming services to subscribers globally.
The competitors of Netflix are Amazon Prime, HBO Now, Disney +, YouTube and many others.
It creates its own and original shows & movies which are very popular on the platform. It
provides an ad-free experience to its users. Moreover, it enjoys a large customer base. The report
further states the HR philosophy to attract, retain and fire policies and practises. The project will
assist in examining the ways which are used by the Netflix to maintain high level performance
and to manage the global talent.
TASKS
1. HR philosophy to attract, retain and firing policy and practises
Netflix HR practises involves to examine the skill and capabilities of the employees. The
employees of Netflix would encourage their friends to become the co-workers as it is the best
place to work even beating another companies for example Apple, Google, Facebook and
Amazon. It also focuses on providing the various services such as proper coffee machines, taco
bars, a snack of the month, fridges filled with the drinks, popcorn dispensers (Nankervis and
et.al., 2019).
HR principles of Netflix supports strategic planning to develop employee's attraction,
retention, and firing policies and practices
HR philosophy is meant by the mindset and thinking of management in designing and
carrying out various HR activities and practices. HR practices requires representatives with
commitment of organisation growth and strategic mind in order to achieve organisational goals.
This philosophy is comprised of beliefs, assumptions and approach towards tasks. Efficient
mindset in HR practices is aimed at aligning employees to work with their potential and ensuring
personal growth of employees.
Netflix HR Philosophy
2

The Philosophy HR management of Netflix is to increase productivity in the working
environment with consideration of various activities. These practices and initiatives are in the
view of developing a safe and secure working environment for their employees to develop and
retain existing employees. Representatives of HR management are indulged in carrying out HR
practices with creativity and efficiency for maximum output through these efforts.
 Netflix is the leading company in the industry of OTT platforms over the globe with
highest market share. For instance, Human resource plays a vital role in achieving such
great heights by a company. Netflix investigates about the applicant thoroughly before
considering selection of that applicant. Appropriate candidate will result in achievement
of desired goals with more efficiency and creativity in operations originated in the
company.
 In order to retain existing employees the management involves activities and practices to
provide positive working environment. It develops a sense of belongingness within
employees towards the company and result in extra efforts attempted by employees in
completion of task assigned. Netflix offers a attractive and upright amount of annual
package to their employees for such creative and efficient operations performed.
Efficiency and positivity in working environment and employee belief with the company
will indirectly lead to enhance quality and efficiency in operations.
 The major reason of termination of employees in Netflix is the outsourcing of
confidential information of the company. Self termination or walk out by many
employees happened due to conversional conflict of Dave Chappelle Special. Attempt for
an inappropriate, violent or physical activity will lead to direct termination of the
employee and no future contract with that employee. Poor Job performance, excessive
absence, misuse of owned property, unethical behaviour, damage to property, etc. could
be the reason for termination according to Netflix firing/termination policy.
Policies in United States
Various policies and strategies are required at different workspaces to manage and
develop employees which are as follows:
 Employee's Healthcare :- HR policies of Netflix in United states is the health and safety
of employees as they believe that Human resource is the biggest asset for a company.
3

Healthy and motivated employees will result in efficiency and creativity in functioning of
the company.
 Adults as target recruits :- HR policies of Netflix in United states is aimed at hiring the
best adults as their employees. The management of the company believes that young
adults are full of creativity and enthusiasm for efficient and innovative work.
Global Policies
HR policies of Netflix applied globally are as follows :-
 Clarity is defining desired performance :- HR policies of Netflix applied globally is
clarity is defining the designed jobs and expectancies from the applicant in job
performance.
 Innovative and Creative approach :- HR management of Netflix is focused over
innovation and creativity in carrying out operations that enhances their efficiency and
effectiveness in company's operations.
2. Netflix manges its talent and reward policy
Netflix manges the talent
At the workplace the proper planning of talent is required to accelerate the speed of the progress
which helps in retaining the employees and nurturing the talent across the organisation. Some of
the ways in which Netflix manges its talent are as follows-
 Netflix believes on making the team strong by motivating and encouraging them to
work together with a common goal to generate more revenue. The people from the team
who are not performing well are required to either leave or change irrespective of how
good they were.
 Netflix treats the employees like grown-ups. They can do their work without getting
approved from their managers. Where the employees can compete with each other in a
healthy manner to bring out the best for the overall success of the team.
 The company keeps the employees engaged with the help of hiring and appointing the
best available candidates and by cancelling and changing the rigid policies in order to
bring more flexibility and get the work done on time for the overall development.
 The work of employees are analysed and interacted with the management in order to be
in the company. With the help of dividing the work, the company can keep the employees
engaged that will help in growth and performance of the company (Jenner,2018).
4

Reward Policy
Effective reward policy is completely related to the proper performance system of the company
which offers wide scope of new learning opportunities with the positive work environment.
Almost all the companies offer various ways of rewards such as ESOP's, bonuses, gain sharing,
profit sharing and stock option plans. Various reward practises which are being provided by the
Netflix are explained below-
 Netflix has also chosen the commission system which is based on traditional approach
in order to provide rewards to the present employees for their overall performance and
contribution in the company. Commission based approach has been very effective for
actors and directors as per the success of the commercial films in the film industry ( Yeh,
Chen and Lee, 2019).
 The parents are encouraged to take four to eight months off so, the employees can have
unlimited parental leave to manage the both personal and professional life in an efficient
manner. The employees can join the work either full time or part time as per their needs
. The employees of Netflix are allowed the flexibility and support to the work (Legge ,
2020).
 Benefits are also provided by Netflix for example the such as,flexible working hours, free
lunches, employee stock option with compensation, unlimited vacation, mobile phone
discounts and health insurance for all the employees. The company has maintained a
good reputation and image as a company in the market by paying its management and
employees good salaries and managing people in a good manner.
 Netflix provide the premium pay and annual adjustment decisions target on to keep
employees at a highly competitive level of pay. The company also has a employee stock
purchase plan(ESPP) which allows to give some employees stock on the top of their
salary which allows the employees to take decision on how to allocate the rest of their
pay-check as per their requirements (Carbery and Cross, 2018).
3.High-performance of Netflix on the basis of sustainable HRM system
High performance is cultural set of behaviours which helps the company to attain its
desired goals to bring the best results which keeps the employees highly productive and
motivated. In a high-performance company , the employees perform very well to meet the goals
together which leads to create a feeling of attachment and engagement with with the company.
5

It helps to generate the innovative ideas as the employees are also participating in the
management and decision making. The company can retain only the best and deserving
employees and the employees can work at their own pace (Stewart and Brown, 2019).
Netflix is providing its services globally but it is yet to provide its services in some
countries like China as most of its competitors do not provide any type of services there.
Expanding into new market and mainly into another international market can be a great
opportunity that Netflix can have. It is also essential to capture the customers of the particular
country with the content which audience actually wants by providing the content in regional
languages to gain new customers with loyal fan base. In order to provide a new experience,
focus is also required on the innovation in technology. Netflix has invested on the network
servers and the content with availability on each screen. The main focus of the company is to
collect the ideas from the world. They make sure to be extremely flexible in the screen size and
needed to be present on all the possible screen size (Shattuc, 2020).
Most of the employees say that they would recommend the company to a friend as it
treats the employee as their family. The company has been active since 1997 now, the users trust
Netflix for their content instead of the television channels or another options. Apart from very
few countries, Netflix is performing globally. Moreover, it provides an opportunity to film-
makers to present their original to ensure that the audience enjoys it. It makes sure that they
bring the best and original content which is appealing to all age groups with their 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
have more customer base (Biesen and et.al., 2019).
Netflix is one of the most popular streaming services due to its original content and high
performance activity in its work-culture. The chosen company has created ethical HRM system
that is fair and motivated work culture which is for every employee by giving the opportunity
to high skilled candidates of the company. The mentioned company did not follow any formal
policies in its HR system that gives the relieve in work culture of the company. They completely
focus on employee performance not on the rules and this is the main reason that b brought the
high performance workplace in Netflix. Some practises which are used by the Netflix at their
workplace are explained below-
6

 Higher pay - This is one of the main reason due to which company is getting the success
in the competitive market. Due to its attractive pay,the company is able to get the global
talent at the work place. It is one of the highest paying company in the industry. As
compared to other companies.
 High performance work culture- The chosen company prefers to appoint the highly
experienced candidates. Company focuses on the final result rather than the hard work.
The HR makes sure that they appoint and hire the deserving candidates which aids in
performing the operations of the company with innovative ideas. Netflix also follows the
hire and fire work culture practice in the company by which the inefficient employees
were replaced by another deserving candidate (Amat and et.al., 2018).
4.Two recommendations for Netflix in order to develop HRM policies
Human resource policies are set of rules and guidances of the businesses to deal and manage the
employees with the help of step by step instructions specify the actions that should be taken to
comply with the policies. HR policies includes the variety of different aspects of human resource
management such as compensation, dress code, termination, recruitment, vacation, overtime or
personal leave. Netflix stands out from other companies due to its culture norms which
highlights the core value of the company. Netflix has a strong brand image and global presence
in the market. The candidates and employees who work in the company belongs from various
countries and backgrounds. To develop the working efficiency of the company some
recommendations are explained below-
 Working culture- Netflix has the culture of hire and fire and open feedback practice in
their daily operations. These approaches have both positive and negative effects on the
company. For example, some people are not used to deal with hire and fire culture and
open criticism so, that by bringing change in that practise can help the company to
improve the future operations. Hence, by implementing such practises can help the
company to bring positive environment at the workplace for the employees. Working from remote location- Netflix does not allow their employee to work from
remote location. Company follows the policy of centralization of employees in which
employees are allowed to work that working on Netflix products should work from their
headquarter in California. Due to this policy the global talent is not getting the chance
to work with the Netflix. In reference to this, if company will allow the employee to
7

work on their products from any location that bring the more options and fresh talent to
the company. This will remove the location barrier that will be helpful for such
employees that are not comfortable to work from central location (Berman, 2021).
CONCLUSION
From the above report it can be said that human resource management plays a essential role in
the operations of company. To bring the employee credibility in the company effective
approaches of HRM are required. Being a global leader Netflix adapts the best HRM approaches
so that it can enhance the operations of the company. The main focus is on choosing the best
candidates for the overall development of the company in the market. In the chosen company
different practises are used like open feedback by which the company can easily go through and
review the performances of the employees in reference of performing the task. The company also
take care of employees by giving them high salaries and they completely focus on the
performances of the employees to attain the desired goals. It also 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 (Bailey and et.al.,2018).
8

REFERENCES
Books and Journals
Amat, F., Chandrashekar, A., Jebara, T. and Basilico, J., 2018, September. Artwork
personalization at Netflix. In Proceedings of the 12th ACM conference on recommender
systems (pp. 487-488).
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource
management. Oxford University Press.
Berman, E.M., Bowman, J.S., West, J.P. and Van Wart, M.R., 2021. Human resource
management in public service: Paradoxes, processes, and problems. CQ Press.
Biesen, S.C., Campbell, P., Castellano, M., Davis, A., Gauthier, P., Maganzani, P., Mcclantoc,
K., Meimaridis, M., Murray, J.C., Sirianni, J. and Stephan, M., 2019. Netflix nostalgia:
Streaming the past on demand. Rowman & Littlefield.
Carbery, R. and Cross, C. eds., 2018. Human resource management. Macmillan International
Higher Education.
Jenner, M., 2018. Netflix and the Re-invention of Television. Springer.
Legge, K., 2020. Human resource management: Rhetorics and realities. Bloomsbury Publishing.
Nankervis, A., Baird, M., Coffey, J. and Shields, J., 2019. Human resource management.
Cengage AU.
Shattuc, J., 2020. Netflix, Inc. and Online Television. A companion to television, pp.145-164.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Yeh, T.L., Chen, T.Y. and Lee, C.C., 2019. Investigating the funding success factors affecting
reward-based crowdfunding projects. Innovation, 21(3), pp.466-486.
9