6. What is the broad applicability of the type of compensation program used by Netflix?

● Employees at Netflix have more alternatives for compensation than just a salary or cash.
● In terms of compensation mix, termination, and cash bonuses, reflected the business
culture of freedom and responsibility.
● Hard work, initiative, inventiveness, and accountability were emphasised, as well as
putting the company's interests first.
● Attract, retain, and motivate Netflix employees.

In what type of companies or industry settings would such a system work?

Would work in the service business and at organisations like Netflix, where employees are
allowed autonomy while yet being held accountable for completing high-quality work.
Advertising companies, for example, require top-level staff to consistently develop better and
new ideas and products in order to stay ahead of their competitors.

In what settings would it be less effective?

Would not work in a company or industry where employees are not allowed to work individually.
In companies with a more centralised decision-making process and employees who are obliged
to perform the same duties again and over, this compensation scheme would be less
successful. Warehouses, restaurant chains, and transportation firms, for example. Employees in
such businesses often follow the directions that are given to them. Employees in such
companies are not expected to be creative in their work.