The HR system that Netflix has implemented focuses on these five aspects:1.

2.
3.
4.
5.

Hire, Tolerate and Reward only fully formed adults

Tell the truth about their performance
Managers owns the job of creating great teams
Leaders own the job of creating the company culture
Good Talent Managers think like businesspeople and innovators first, and like HR
people last

For a company like Netflix that focuses on high performance, a system have the following
traits may work. Hiring and retaining employees who have a wide range of skill sets that
matches with the company's requirement creates an atmosphere that promotes creativity.
Although it leads to a weak organisational culture, the company would be satisfied as it has
employees that can drive the company to new heights through their innovations and
creativity. They can take better decision and can guide the teams towards the goals of the
organisation. The type of communication they want to implement in this system is informal.
This promotes freedom and focuses on how employees react to certain issues. This reduces a
lot of pressure from the HR who would then have to waste considerable time in correcting the
policies for the betterment of the employees. They want employees that would make great
teams and promote a culture that would sustain for a long time enhancing the performance of
each employee present.
We even do see that this aligns with the values that the company follows. The following are
the values of Netflix:Values of the organisation (9 behaviours and skills)
1.
2.
3.
4.
5.
6.
7.
8.
9.

Judgement
Communication( Calm and concise)
Impact( Result focused)
Curiosity( Rapid Learner)
Innovation
Courage (Smart risk)
Passion(Tenacious)
Honesty(Candour)
Selflessness (Transparency and Organisation first)

If we carefully look at each values and compare with culture the company want to follow ,
then we do find that the system that has been implemented works in the favour of Netflix.
With no complaints so far in the changes made in the HR system of Netflix, this assures that

the company focuses on retaining the right kind of people who would be innovators, risk
takers and result focused.
The way they handle the relations with their employees is crucial to their organisations. They
may not prefer to retain an employee whose skill sets are not required to them , although the
person has been in the company for a long time. They focus more on creativity rather than
loyalty, and prefer an honest way of confronting the facts to them.
By hiring the right people, they are saving on their training cost . They do not have to create
policies that would enhance training facilities, thereby saving time and cost. The freedom
given to the employees is also helpful for them to take necessary decisions on their part and
discuss it with their superiors and colleagues.
Netflix wants to attract people who thrive on excellence, candour and change. They develop
on their own and they do not require any formal process on improving themselves with time.
This type of culture suits very well in companies that are growth oriented and want the better
players on their side that would give them the necessary results.
With no performance appraisal and an informal 360 degree feedback system, it gives a
chance to their employee to measure their performance, see where they stand and how they
can improve themselves on their part. This highlights those employees whose goals are
aligned with the organisation and want to excel in the company- the kind of people whom
Netflix want to retain.