Netflix Case Study: Analyzing HRM, Talent Management & Global Strategy

This case study examines Netflix's Human Resource Management (HRM) practices, focusing on how the company's HR philosophy shapes its employee attraction, retention, and firing policies both in the United States and globally. It analyzes Netflix's talent hiring and reward systems, considering the varying employment laws across different countries. The report also evaluates how Netflix maintains a high-performance workplace through sustainable and ethical HRM systems, including performance improvement plans and 360-degree reviews. Furthermore, it explores current and future trends in HRM, such as the use of social media for recruitment and data analytics for competitive advantage. The study concludes with recommendations for developing effective HRM policies to manage global talent, emphasizing the importance of independent decision-making and transparent communication within the organization.

Netflix Case Study

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
How Netflix HR philosophy helps in shaping employee attraction, retention and firing policy
and practices in United states and also at global level................................................................2
How Netflix maintain its talent hire and reward practices globally............................................4
How Netflix maintain a high performance workplace based on sustainable and ethical HRM
system..........................................................................................................................................5
Recommendations for developing effective HRM policies and practices to manage global
talent............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
Books and Journals.....................................................................................................................9
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INTRODUCTION
Human resource is a department in the companies which works for the company most
important asset and that includes the employees. They have to make sure that the employees are
having all the things which are required to perform their daily operations so that they can
develop a healthy and cultivated work environment(Pham and et. al., 2020). The HR department
is responsible for maintaining and developing the company personnel and also they have to work
in developing good personal relations and the workplace culture. The HR department of the
company have to manage the life cycle of employees which includes the recruitment, on
boarding, hiring and training and development programmes. It does not depend on the size of the
company but the effective human resource department has to effectively manage the workforce
labour, policies of company and also have to ensure the legal compliance so that the company
does not have to face any difficulty. Netflix is an American subscription streaming service which
was founded in the year 1997 and is having its headquarters in California, U.S. This report will
cover the Netflix Hr philosophy, talent hire and reward practices globally, how the company
maintain high performance workplace and recommendations for Netflix.
MAIN BODY
How Netflix HR philosophy helps in shaping employee attraction, retention and firing policy and
practices in United states and also at global level
The HR philosophy refers to strategic and rational approach to management which is
helpful in shaping the retention, attraction of employees in the organisation. The HRM strategies
refers to the plan which helps in making the implementation of functional areas of human
resource.
Implementation of HR strategy-
The implementation of HR strategy can be made when it linked with the business needs because
if the HR strategy will not be made according to the business needs then it will be impossible to
achieve business objectives(Marrucci, Daddi and Iraldo, 2021). After which the plan needs to be
made and the plan which has been made should be communicated with the stakeholders so that it
can promote the collaboration. The next is to make the measurement of the strategy which has
been implemented and later the assessment needs to be made so that it can ensure that the
strategies which is followed is providing certain results.
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HR philosophy in United States-
The Hr policies which is helpful to Netflix in attracting the best talent is that the company
provides the benefit of employing people who are experienced and have worked in other places.
For the experienced people the Netflix gives them the opportunity to work in their company. The
other factor with which the company is able to attract the talented people is because of the fact
that the company have made the elimination of formal time-off policy and provide the facility
that employees can take off whenever they feel that it appropriate to them but making
coordination with the supervisors.
For Retaining the employees Netflix have developed a unique style in which they have
introduced the transparent pay policy where the employees have the facility to view the
compensation which is earned by the other employees and also to the people of top
management(Westerman and et. al., 2020). They have also made the HR policy in which the
weekly survey of employees which is an motivational factor to the employees because if they
will work with great productivity then they will be appreciated for it.
Firing policy which the company is clear about as they provide employment to only to those
people who have the capability to work in that culture other employees were get terminated. The
main aim of the company is that they will only provide the recruitment to people who are having
the experience in their work and did not make the hiring to the college drop outs or who are
studying in colleges.
HR philosophy globally-
The HR philosophy which is followed by Netflix in other countries is somewhat similar
to what they are using it in the United states. Attracting talent by Netflix is made on the purpose
that they provide the yearly allowance to their employees which is of around $15,000 which
cover the medical care and other factors. The company also provides the vacation policy to their
employees in which they intermix the work and also the personal time(Freitas and et. al., 2020).
'
The other factor is the Retention of employees in which the company conducts efficient
strategies including that they trust their employees and have always tried to inculcate in the
working environment with the familiar attitude so that the employees can act in the best interest.
They always prefer that employees remain motivated towards the work which they are doing and
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do not conduct any of the practices which creates the differentiation of high and low performing
people.
Firing policies which is not just in U. S but also in other global countries where those people are
fired from the job who are not able to work up on the rigorous standards of the company. This is
all in the hands of a manager that if they are not feeling to keep an employee in the organisation
then they do not work hard for them and let them go.
How Netflix maintain its talent hire and reward practices globally
The employment laws differ from one country to another in which the companies which
is having its business in different countries have to make sure that they are able to manage the
laws and with that are also ensuring that the laws and regulations which are designed by the
government is followed by the company so that it do not have to face any consequences(Verma
and Bandi, 2019).
The Netflix is working for the hiring policies and for that they make the hiring of the talent on
the basis of experience which they are having. This means that they are employing in their
organisation only those people who are experienced in their work so that training is not provided
to them. This is the reason because of which company always tries to demand highly self
sufficient employees and do not put their focus in recruiting the fresh talent. The HR department
of Netflix have developed the policies of company in such a way that they do not focus on
getting the employees who are qualified on an educational basis but rather then that what they
actually looks for is the people who are experienced.
The other factor by which the company is maintaining its talent hire is that they are
focused on hiring only those employees who are able to fit in their work culture. They do not
want to recruit and hire those personalities who are incapable of working in the culture which the
company is having(Nawaz, 2020). The other thing which the Netflix HR department is looking
for is the fact that the people who will be coming to the company must be possessing with them
the technical knowledge. The company is based on the ideology that instead of spending their
time and money in developing and creating the HR policies because of the issues which will be
felt by some employees but instead of that company will try not to recruit such type of people.
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The company also provides the reward benefits to the employees in which it covers the
vacation policy of the company. They provides the facility to the employee in which they feel
motivated enough to work hard for the organisation and also to work in terms of achieving the
business objectives. The other reward which is provided by the management of Netflix to its
employees is that they have made the elimination of formal time-off policy and have provided
the facility to the employees that they can take the leave whenever they feel appropriate only
they have to coordinate their leaves with the supervisors(Lasisi and et. al., 2020). The
employees were also given the facility to follow the informal policies in which the
implementation of the time off policies was successful and the reason for this is that most of the
employees were software engineer who do not have any tolerance for the bureaucracy.
Current and future development in HRM locally and internationally
The current trends which the companies are following both in locally as well as
internationally is that the companies are going social which in the past time was not like that.
With that the companies are also making some of the modifications in the overtime working in
which it includes to make the change in percentage of salary hike to the employees. In the
international as well as in local HRM policies the companies are making the utilisation of data
and analytic tools which is helping them to make the recognition of all the situations which are
competitive in nature but that is helping the companies in increasing their competitive
edge(Boardman, Ponomariov and Shen, 2020). The future development can be virtually which
will increase the prominence of doing work in a new way. The recruitment will be done on the
basis of social media and also on the basis of cognitive assessment. Employees might have to
develop the learning in each and every segment.
How Netflix maintain a high performance workplace based on sustainable and ethical HRM
system
High performance workplace refers that area in which the investment in people is made
on a continuous basis, which will also be based on process, physical environment and the
technology. This means the workplace in which the employees are able to develop their ability to
learn, innovate, discover and also to achieve the efficiency. The managers of Netflix always
makes the consideration of employing people who have some talent and who can work with the
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culture of the company. The Netflix is having high performance workplace because the managers
of organisation develop a Performance Improvement Plan (PIP) which will be helpful in assuring
the quality but still with such facility the Hr of the organisation believed that reskilling and
providing the training to the employee for different job role might create difficulty. With that the
HR manager of Netflix believed that people of the organisation can handle the bad news if it
discussed with them in a precise way(Alavi and Aghakhani, 2021). The other factor because of
which the workplace of Netflix is giving high performance is based on the 360 degree reviews,
which is based on the view that the working of employees will be discussed anonymously. This
helped the employees in identifying their tasks, actions, approaches which they have to change if
some feedback is given to them. The management of Netflix believes that they only want to keep
that people who are highly effective in their working and who can work under the pressure if the
situation demands them to act in that way.
Netflix is able to provide the work culture which includes entertainment which is an
important need for humans and they have the most amazing and unusual work culture because of
which the employees in the organisation feel motivated enough to work towards accomplishing
the objectives of a company(Langer and König, 2021). This is why the company is able to
provide the high performance working and this is because of the fact that they always tries to
encourage the independent decision making which is made by the employees, also the
information is shared in far broad and in deliberate manner. If such type of work culture or work
environment will be provided to employees then it is an obvious fact that it will lead to high
performance working.
Recommendations for developing effective HRM policies and practices to manage global talent
HRM locally and internationally-
The International HRM is related with the management of employees which is related
with the three countries consisting of parent country, host and third country. It is done at the
international level because of which the staff has to work outside the national boundaries of the
country (Kundu, Mor and Gahlawat, 2020). While domestic HRM is related with the
management of employees but only in a single country. The domestic Human resource
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management is related with limited external factors so it is less complicated as compared to the
one which is International HRM.
Recommendations for developing effective HRM policies has been discussed below-
 Firstly, the company must provide the employees effective training because there are
some employees whose efficiency can be improved when the company is able to provide
them the training. Instead of firing the employees, managers must look into the factor that
if the employee can be developed on the basis of providing them training(Jiang,
Takeuchi and Jia, 2020). This will require the management an evaluation on the basis of
which the need for training can be evaluated which will be helpful in increasing the
productivity. Secondly, the best practice which can be used by the company is that they can align the
strategy of employees with that of growth plan of company. This will be helpful to
Netflix in developing a workforce which will be enthusiastic as they would be able to
link the strategy of their talent as per the company overall strategy. If the company would
be able to adopt such strategy then they can outperform other then their competitors in
higher percentage.
Practices to manage global talent-
 The best way by which Netflix would be able to manage their global talent is that they
can make the alignment with the strategy(Bresciani and et. al., 2021). This means that the
effective talent management requires that the business strategies and the goals are able to
drive the quality and quantity for the talent.
 The next is the internal consistency which refers to the ways by which the talent
management practices of the company is being able to fit with each other in an effective
way.
CONCLUSION
From the above report it can be concluded that it is very important for the companies to
frame and develop their HR policies in an effective way because this is indirectly related with the
employment of people. If the company will develop its HR policies in a right manner then this
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will help the company in attracting and retaining the employees. The company must also makes
the proper maintenance of hiring and reward practices and in such way that it is working in
globally having different global laws. The high performance workplace is the another factor in
which the company must efficiently so that the employees are getting the excellent work culture
and this will directly be related with the productivity in their working.
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REFERENCES
Books and Journals
Alavi, S. and Aghakhani, H., 2021. Identifying the effect of green human resource management
practices on lean-agile (LEAGILE) and prioritizing its practices. International Journal
of Productivity and Performance Management.
Boardman, C., Ponomariov, B. and Shen, H.L., 2020. Science policy implementation: strategic
versus technical human resource management. Science and Public Policy, 47(6),
pp.844-854.
Bresciani, S. and et. al., 2021. Human Resource Management and Digitalisation. In Digital
Transformation Management for Agile Organizations: A Compass to Sail the Digital
World. Emerald Publishing Limited.
Freitas, W.R.D.S. and et. al., 2020. Green human resource management and corporate social
responsibility: Evidence from Brazilian firms. Benchmarking: An International Journal,
27(4), pp.1551-1569.
Jiang, K., Takeuchi, R. and Jia, Y., 2020. Taking peers into account: Adoption and effects of
high-investment human resource systems. Journal of Applied Psychology.
Kundu, S.C., Mor, A. and Gahlawat, N., 2020. Strategic human resource management and
employees' intention to leave: testing the moderated mediation. International Journal of
Productivity and Performance Management.
Langer, M. and König, C.J., 2021. Introducing a multi-stakeholder perspective on opacity,
transparency and strategies to reduce opacity in algorithm-based human resource
management. Human Resource Management Review, p.100881.
Lasisi, T.T. and et. al., 2020. Explanatory investigation of the moderating role of employee
proactivity on the causal relationship between innovation‐based human resource
management and employee satisfaction. Journal of Public Affairs, 20(2), p.e2051.
Marrucci, L., Daddi, T. and Iraldo, F., 2021. The contribution of green human resource
management to the circular economy and performance of environmental certified
organisations. Journal of Cleaner Production, 319, p.128859.
Nawaz, N., 2020. Exploring artificial intelligence applications in human resource management.
Journal of Management Information and Decision Sciences, 23(5), pp.552-563.
Pham, N.T. and et. al., 2020. The role of green human resource management in driving hotel’s
environmental performance: Interaction and mediation analysis. International Journal
of Hospitality Management, 88, p.102392.
Verma, R. and Bandi, S., 2019. Artificial intelligence & Human resource management in Indian
IT sector. In Proceedings of 10th International Conference on Digital Strategies for
Organizational Success.
Westerman, J.W. and et. al., 2020. Sustainable human resource management and the triple
bottom line: Multi-stakeholder strategies, concepts, and engagement. Human Resource
Management Review, 30(3), p.100742.
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ONLINE
Work Life Philosophy, 2021 [online] Available through:<https://jobs.netflix.com/work-life-
philosophy
>.
5 HR strategies you should learn from Netflix, 2021 [online] Available
through:<https://www.peoplematters.in/blog/assessments/5-hr-strategies-you-should-learn-
netflix-12320
>.
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