SHR016-2 People Resourcing and Development - Netflix Case Study

This case study delves into Netflix's people resourcing and development strategies, examining the company's unique HR practices and their impact on its success as a leading streaming platform. It explores the company's hiring processes, employee benefits, and performance assessment methods....Read More

People resourcing and
development based on
Netflix case study

Contents
INTRODUCTION...........................................................................................................................1
Define the People Resourcing & Development strategies at Netflix, supported with relevant
academic theory, models of practice............................................................................................1
Explain how the different internal and external contexts influence Netflix’s People Resourcing
and Development strategies, supported with relevant academic theory or models.....................2
Assess the labour markets in two countries referred to in the Netflix case study.......................3
Based on good practices in People Resourcing and Development functions, advise how Netflix
could position themselves to be competitive...............................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Netflix is an American based digital service of content streaming and production house.
The company was founded in 1997 by two person named Reed Hastings and Marc Randolph.
The company was first started with mailing services to provide DVD Renting subscription
services, later in 2007 the industry first started their digital video streaming services. The
company main platform from 2016 is subscription model streaming service which is available
through smartphones, laptop, smart televisions with presence of internet services (McElroy, and
Noonan, 2019). The company have the highest number of engagement with audience from past
few years and has been successful. The company has subscribers more than 167 million and
ranks under twenty for global engagement competing with twitter, google and Facebook etc. In
this report the whole case study of Netflix is discussed with questions including people
resourcing and development strategies followed by internal and external contexts in people
resourcing and development strategies with assessment of labour markets and how Netflix can
position to be competitive.
MAIN BODY
TASK
Define the People Resourcing & Development strategies at Netflix, supported with relevant
academic theory, models of practice.
Netflix care about lot employee experience as it believes that with experience of more
than five to ten years, education does not matters in the company. The company gives preference
to experienced candidates than freshers as it demands self independent and sufficient candidates
to solve the problem with the knowledge employee possess. The company only hires candidates
who fits in the culture with important technical knowledge. Hiring in Netflix is very tough and
its HR policies are same in international countries. Like the company does not hire any fresh
college graduates and always prefer experienced candidates, they also avoid persons who want to
work from home or remote locations. Company takes every detail of employees work
performance they make sure they are capable with technology and if not they reject the
candidate. Someone's bad performance can also result in termination in the company. Even after
this long and tough process company have 8600 employees present with leading Netflix very
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efficiently (Vecchi, 2019). Employee experience in Netflix is good as they have policies to
provide employee benefits time to time like it has a regular paid time off for employee, in this
employee gets 10 vacation, with 10 holidays and sick day leaves. Tracks are being kept and
informed to higher authoring for such records. After an research done by Netflix it was found
that there was no policy for paid off leaves and the company decided to provide employee leaves
whenever they like with providing information with coordinators. elimination of formal time off
policy was done. Netflix could have asked and consulted with employee regarding this policy as
they are worried about the inconsistency in the the system and biased environment. Culture is
more important in the company than rewards as this paid off policy did had benefit like
employee can take leave when ever they prefer but some leaders and supervisors in the company
are strict an could not allow the same (Lopes, 2021). This creates a unequal culture in the
environment. Netflix is one of the highest paying companies in the world which provide enough
range of salary. As per competitors Netflix gives far more money and most employee prefer to
stay rather than shift to another company. This resulted in growth of the company. Netflix is very
much transparent about their pay policy to encourage and motivate employee they are fairly
treated and compensated.
Explain how the different internal and external contexts influence Netflix’s People Resourcing
and Development strategies, supported with relevant academic theory or models.
Internal and external context have influence in Netflix people resourcing and
development strategies supported with pestle analysis is followed by, the political factor in
Netflix is the company is not available in every country. China is one of the largest economy still
it dose not allow Netflix to operate as per US policies. Some content of Netflix also limited to
countries and it is not allowed to screen (Godwin-Jones, 2018). The political threat is European
nation have very high tax imposed for Netflix. Economic factors for Netflix is as due to
pandemic there are many OTT platforms introduced but as for enriched content it has positive
hand in market. With high GDP growth Netflix demand will increase. The company operates in
foreign country and the locations political factors and economical factors will effect the
exchange rate fluctuations which will result in bad impact. In some countries Netflix have to
keep prices low to survive in the market. Social factors for Netflix are Unemployment, wage
rates, taxation, inflation and others that will impact viewership. The trend are must to keep in
mind for Netflix like Demographic factors, gender, equality roles. The working environment of
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Netflix motivates people to join the company and work to build quality content. As per avoiding
social norms Netflix once fired IT engineers for going japan, company have very strict policy
regarding employee termination and accept that will do the same in future. Technological factor
that affect Netflix are, As Netflix is an internet based app and website therefore technology plays
very vital role for it (Flew, and Wilding, 2021). They need very digital rights like rights, patent,
trademark copy right which are important. Netflix new technological features give options to
shortlist and show interest of viewers. The use of algorithms for promotion reflects positive
parts. Legal factors that have effect on the company are before entering new market or country, it
has to overlook any new market policies of the government in that country. Netflix have to go
through laws such as intellectual property right, consumer protection laws, security laws.
Environmental factors for the company to consider are Netflix use major of the business online
and through digital platforms which do not have any impact on environment. Another step is
taken to reduce effect is minimise the use of paper by Netflix.
Assess the labour markets in two countries referred to in the Netflix case study.
From sources Netflix announced that it has been aggressively expanding internationally
into new markets as per US Netflix is among one of the most desired work places by employees
in the country. People tend to join the company seeing their generous rewards (Grimes,Williams,
and Zhao,2019). They have culture of recognizing top performers and only practice for highest
achievers. Netflix expanded to many countries with their high quality content and on previous
years Netflix had large growth inn countries in America to European countries. The series which
reflect on various countries were House of cards, la casa de papel, narcos etc. Netflix global
subscriber crossed US subscribers between 2016 and 2019. As per global graphs Asian countries
showed 15 million subscriber growth where as Latin American countries with Europe, middle
east and Africa showed 29 million, 47 million growth compared to USA and Canada they
showed 67 million subscriber growth. Netflix employees numbers and revenue effected huge
differences due to continuous growth from past years and rising demand in the digital content
entertainment business in people. Netflix showed revenue of 7 billion dollars in 2015 with
employee numbers as 3500 worldwide, in 2019 it showed revenue of 20 billion us dollars with
employees present are 8600 worldwide (Souto-Manning, and Melvin, 2022). The human capital
theory suggest that humans beings can increase their productive capacity through higher
education and training skills. It expected from this theory that increased investment in human
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capital will result in labour force and for economic growth. Where as Netflix do not believe that
human capital education is important for the company growth the company has always preferred
experience over education, it tends to provide basic training skills but as an experienced
employee they know how to solve problems. Dynamic capability theory suggest that
organisation intentionally adapt with the resources present in the environment and use it
efficiently as like managerial skills, the ability to integrate, build etc. as per Netflix company
have unique structure (McGuire, and Brenner,2021)m so that people value. The suggestion is to
provide some training skills and Netflix to acquire for more younger generation employees to
better relate with audiences. To engage with large audience in worldwide it needs to cover all the
age groups potentially and with having in their team it will effect with good results.
Based on good practices in People Resourcing and Development functions, advise how Netflix
could position themselves to be competitive.
The practices Netflix uses to develop and people resourcing are beneficial as Netflix use
experiments and policies to see what helps with employee satisfaction and performance. The
practices Netflix uses are, Continuously hiring able employees and removing out inefficient ones
as the company believes that taking care of employees and managing is by hiring the best people
for the work. Candidates who have same goals as the company will have best interest for the
organisation. This process helps in creating better work place. Frequent performance assessment
are considered by company as it important for the company and the process is done monthly or
yearly (Muonio, 2020). The company aims to provide consumers bet quality of services in
movies and web series for. Company as in the streaming services which was in peak in the
duration of pandemic. It increased the viewership of channels regularly, by this they gained
strong competitive advantage by evaluating the competitors and there content. Evolving as time
to time, they listen and respond as per their user, and they recruit one of the best employees
which creates efficient and quality work results for the company.
CONCLUSION
From the above report it has been concluded that Netflix as an worlds largest streaming
platform have various policies and regulations for employees in organisations which was covered
in this report significantly. Its people resources and development strategies were discussed in the
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report and how the hiring process is done in the company. Further a brief pestle analysis was
done the different factors of Netflix which have internal and external impacts. The labour market
and its growth is explained in the report and at last the practices and development function which
are used by the company is mentioned which resulted in gaining competitive advantage for the
company.
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REFERENCES
Books and Journals:
Flew, and Wilding, 2021. The turn to regulation in digital communication: the ACCC’s digital
platforms inquiry and Australian media policy. Media, Culture & Society, 43(1), pp.48-
65.
Godwin-Jones, 2018. Contextualized vocabulary learning. Language Learning &
Technology, 22(3), pp.1-19.
Grimes,Williams, and Zhao,2019. Anchors aweigh: The sources, variety, and challenges of
mission drift. Academy of Management Review, 44(4), pp.819-845.
Lopes, 2021. Video streaming services: what do customers want (Doctoral dissertation).
McElroy, and Noonan, 2019. Producing British television drama: Local production in a global
era. Springer.
McGuire, and Brenner,2021. Features at a Glance. In Building Business Value through Talent.
Emerald Publishing Limited.
Muonio, 2020. A Literature Review: An Analysis of the Widespread Effects of Solitary
Confinement/Social Isolation on Mental Illness and Mortality.
Souto-Manning, and Melvin, 2022. Early childhood teachers of color in New York City:
Heightened stress, lower quality of life, declining health, and compromised sleep amidst
COVID-19. Early childhood research quarterly, 60, pp.34-48.
Vecchi, 2019. Global work arrangements and talent management in the born-virtual
organization: The case of Automattic. In Research Handbook of International Talent
Management. Edward Elgar Publishing.
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