NETFLIX HR POLICY

Unorthodox HR Management of Netflix

Company Profile
Netflix is the world’s leading streaming entertainment
service with over 195 million paid memberships in over
190 countries enjoying TV series, documentaries and
feature films across a wide variety of genres and
languages. Members can watch as much as they want,
anytime, anywhere, on any internet-connected screen.
Members can play, pause and resume watching, all
without commercials or commitments.

In 2009 Reed Hastings’s CEO of Netflix was

presenting PowerPoint presentation from 2009 on Netflix’s
corporate culture. It had been viewed by well over 15
million people by the time it was updated and
condensed in 2017. Sheryl Sandberg, the adult
supervision at Facebook for its founder Mark
Zuckerberg, said the initial presentation “may well be the
most important document ever to come out of the Valley.”
Netflix Timeline 1997 Establishment
In August 29, 1997 Marc
Randolph and Reed Hastings
founded Netflix. Netflix launched
as the world's first online DVD-
Website Launched rental store
Netflix launches its website with 925 titles
1998
available for rent through a traditional pay-per-
rental model

Initial Public Offering

2002 Netflix initiates initial public offering (IPO), selling

Worldwide 2007- 5.5 million shares of common stock at the price

of US$15.00 per share
Netflix announces that it will 2017
launch streaming video. Within 10
years Netflix has reached global
market. A study in 2017 showed
that the number of Netflix
subscribers now equal that of all
the cable subscribers combined

Market Leader
2020 Netflix has become the Market leader
Netflix’s Performance Management and Appraisal
“In Netflix we use 360-degree review (360-
degree Feedback) to employees
performance review”

“In Netflix we eliminated performance-based

bonuses, preferring to pay people fairly and
trust them to do good work.”

“Employees have the freedom

to make decisions, but keep in mind what is
best for the company. The level of flexibility
and self management that Netflix also offers
creates more efficiency”

“Employees can get unlimited vacations.

Employees don’t have to worry about
whether they’ve racked up enough days off
to take a trip or whether
they’ve worked long enough hours to
impress the boss”
360 DEGREE FEEDBACK

 With 360-degree feedback / review, the

employer collects performance information all
around an employee—from his or her
supervisors, subordinates, peers, and internal
or external customers
 In Netflix which is an open conversation
between employees and their managers about
feedback from people inside / outside the
company who have any contact with the
employee
How Netflix Managing Career &
Retention ?
In Netflix there are two
Necessary Conditions
for Promotion; (1) Job
has to be big enough
and (2) Person has to be
a superstar in current
role
“Career Planning Not for Us. Formalized
development is rarely effective,
and we don’t try to do it such as Mentor
assignment, rotation around a firm, “We develop people by
multi-year career paths, etc” giving them the
opportunity to develop
themselves, by
surrounding them with
stunning colleagues and
giving them big challenges
to work on”

Being straightforward has costs, but having

direct conversations with and offering a
generous severance package to employees
who are no longer a good fit has
resulted in zero lawsuits over termination to
date
 Strategic Pay Plan

Netflix Pay Plan

Strategy
Netflix using External Equity for it pay plan strategy. It
compare how a job’s pay rate in one to other company for
every job functions, and It pay employee at the top of their
personal market. Netflix also have Stock Option program
which each employee chooses each year how much of their
compensation they want in salary versus stock options.

To help us attract and retain

stunning colleagues, we pay
employees at the top of their
personal market. If your
market adjusts, we do not
have to wait for an annual
compensation event to make
changes.
Compensations
Stock Option
Program Parental Leave Time Away
Each employee Netflix’s parental Netflix’s vacation
chooses each year leave policy is: policy prescribed by
how much of their "take care of your each of employee
compensation they baby and yourself." need and there is
want in salary New parents no limitation of
versus stock generally take 4 - 8 vacation time
options months.

Personal Top Expenses and Work- Employee Giving

of Market
To help Netflix
attract and retain
stunning colleagues,
It pay employees at
the top of their
personal market
Related Travel Program
Our policy for travel, Netflix support
entertainment, gifts, employee and the
and other expenses is organizations
5 words long: “act in important to them
Netflix’s best interest.” through match
We do not have a set contributions up to
travel policy at Netflix. $10,000.
TOPICS DISCUSSION

What (if anything) is it about Netflix that makes its HR

practice work for it?

Would you suggest using similar practices in other

businesses, why ?

What is the criteria you would use for deciding wether

another company is right for Netflix-type HR practice
 THANK YOU

Nurhuda S Majid 2006499862

Pasthika Raras 2006553952
Kevin Octareza 2006553523
Jimmi Adiguna 2006553416
Meliza 2006553694
Puti Adani 2006553965
Mamat Rohimat 2006553643
 1. Hal apa yang dinilai atau yg menjadi umpan balik pada metode 360 Feedback ika
feedback dilakukan oleh bawahan apakah feedback bersifat umum atau menyinggung
permasalahan teknis?,

Questions danapakah penerapan yg dilakukan pada netflix dapat diterapkan pada pemerintahan
(PNS) – Dimas DP -

2. apakah terdapat minimal requirement dalam menerapkan metode 360 feedback ini di
Indonesia, mengingat Indonesia memiliki budaya kerja yang berbeda dengan negara2
maju seperti US, UK dll
– Bagoes Harsono -

3. Apakah ada metode pengukuran kinerja karyawan yang dapat menghindari penilaian
subjektif? Jika tidak ada, apakah metode yang paling minim unsur penilaian subjektif
menurut kelompok 4?
- Bestari Nirmali Santi –

4. Di tempat saya bekerja setiap tahun ada employee share plan, jadi employees bisa
beli saham kantor. Namun peminatnya lebih banyak dari karyawan senior yg berencana
stay untuk di perusahaan lama (karena kalau resign sharenya harus dikembalikan ke
perusahaan. Kalau mnrt team kelompok 4, apakah share plan tersebut lebih
menguntungkan employer atau employee? – Anindita Nazhifa –

5. Pandangan terkait strategi perusahaan untuk mempertahankan karyawan (retention)

dengan program pinjaman kepada karyawan – Edo Lahartu -

6.