Netflix has become one of the staples of modern culture, and it is hard to find someone who is not at least vaguely familiar with that name. It is a go-to for people when they feel bored, upset, or just plain neutral. After all, what is more fulfilling than cozying up on the couch, watching your favorite show after a long day at work or school? Or, what is more exciting than finally getting around to watching that show that your colleagues have been blabbering about for the past month-and-a-half?

Netflix is present in more than 190 countries, bragging over 220 million active users. This begs the question: how does Netflix manage to stay on top of its game and, more crucially, how does it handle this tremendous increase in its size? Of course, there is no single secret ingredient to this Netflix success, but there is one that certainly stands out – HR and culture.

So, in this blog, we will discuss the key HR and cultural approaches that have made Netflix what it is today.

HR and Cultural Strategies to Learn from Netflix:

1)    Emphasis on Common Sense and Pattern Recognition:

Patty McCord, the former CTO (Chief Talent Officer) at Netflix, says that she tries to identify patterns when making new hires. By taking note of the behavior and performance of the people she had hired, she was better able to gradually improve her judgment calls. Patty also feels that common sense is a key factor in HR: this means, making decisions that not only benefit you, but are in the best interest of your organization and the customers that you serve.

2)    Creating the Dream Team:

Belonging to a ‘dream team’ is a source of tremendous satisfaction and pride. At Netflix, the definition of an ideal workplace does not include luxurious offices, sophisticated gyms, and frequent parties. Instead, Netflix employees believe that the perfect workplace consists of a dream team working together to achieve common goals and milestones.

Teamwork can help improve creativity, learning, initiative, planning, efficiency, expertise, morale, and the quality of customer service being provided. At the same time, it can create a sense of belonging and ownership, motivate employees, improved day-to-day results, improved long-term results, and, ultimately, higher revenue and profitability.

The Keeper Test:

Netflix, undoubtedly, has some of the most unique and effective practices aimed at increasing employee productivity. One such practice is the ‘Keeper Test’ which, despite its simplicity, is incredibly effective.

The keeper test consists of just one question targeted at Netflix managers:

If an employee told you that they are about to take up a similar position at another company, would you let them go or fight hard to make them stay?

If the manager thinks that they will not fight to keep hold of the employee, then that employee is let go with a significant severance package. In fact, at Netflix, the practice is: an adequate performance gets a generous severance package. This means that the company is only looking for the best of the best; it does not want average or ‘adequate’ performers.

3)    Increase in Candour:

Netflix believes that candour, or frankness, can take high performers to the next level, transforming them into outstanding performers. Regular, candid feedback exponentially increases the speed and effectiveness of a workforce or team. Hence, the company sets the stage for candour by actively adding feedback moments to its meetings.

At Netflix, feedback is given and received according to the ‘4A’ guidelines: