What is the culture of Netflix really like? How do insiders view it? Last week, I consulted with an HRBP from Netflix.
Jas is my junior schoolmate, who joined Netflix in 2022 as an HRBP. Before joining Netflix, she also worked in HR at a well-known investment firm SoftBank.
Our conversation lasted nearly 1 hour. To make better use of the interview time, I prepared several interview questions in advance. Here, I summarize the main points of this interview in the order of my questions.
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<li>How to understand Netflix's famous &#34;Freedom and Responsibility&#34; culture</li>
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Jas believes that Netflix does not have many strict rules and regulations in management, so judgment is very important for managers. Although managers have a relatively high degree of freedom and decision-making power, they also need a lot of judgment when assessing various matters - this is the &#34;responsibility&#34; aspect of this culture.
For example, Netflix's reimbursement system reflects this culture: when submitting reimbursement requests, employees need to prioritize Netflix's best interests, rather than judging which expenses are reimbursable based on a reimbursement guide.
How to ensure that managers do not abuse the power given by the company? Jas explained that as a manager, there are many eyes watching you in the company. If your work is not good enough or if a subordinate is not performing well, your colleagues, team members, or HRBP will give you feedback.
The company's information is highly transparent, and there is no room for any misconduct in this environment. On the other hand, the high degree of freedom also brings some pressure to new managers, which requires HRBP and their superiors to provide them with sufficient support.
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<li>Why did Netflix revise its corporate culture this year?</li>
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Jas believes that Netflix's revision of its culture reflects the changing trends in the company's business. In the new version of the culture, in addition to continuing to emphasize high standards in hiring and valuing people over processes, a new concept has emerged: &#34;Excitingly Uncomfortable&#34;.
When the old version of Netflix's culture was born, the company had only over a thousand employees, but today the company has thirteen thousand employees and is distributed globally. In addition to the streaming business, the company has also entered many new business areas, including advertising, gaming, and more.
In the past, everyone just needed to focus on producing good content. But today, in new fields, everyone needs to be bolder in trying various experiments and taking risks, which requires maintaining enough excitement even in unfamiliar areas, and being passionate about exploring the potential of new opportunities and business areas.
The introduction of the new version of Netflix's culture was not decided by the management alone, but went through a process of company-wide discussion and participation. It is said that the &#34;Excitingly Uncomfortable&#34; concept is highly recognized by employees, as they believe it aligns with the current stage and requirements of the company's work.
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<li>How can HRBPs effectively support business managers?</li>
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Unlike many companies where HRBPs passively support the business, Netflix's HRBPs are more proactive. As an HRBP, you need to constantly monitor the development and issues of the business, proactively intervene in all aspects of personnel management, collaborate with managers to plan for the organization and talent, rather than waiting for problems to arise before advising managers
For example, in terms of performance management, HRBP does not intervene only at the final stage—such as when a manager is preparing for a dismissal conversation. On the contrary, HRBP usually keeps a continuous eye on the performance of each employee in the team, so as to provide guidance to the manager as soon as issues arise.
Here, HRBP is truly a business manager's partner, rather than a supporting or auxiliary role. To effectively support managers, the influence and capabilities of HRBP are crucial. According to Jas' observation, Netflix's HR personnel are generally experienced, and junior HRBPs at Netflix typically have at least 5 to 6 years of experience.
IV. What high requirements does Netflix have for talent?
Most companies have a set of standard requirements for talent, including competency and qualifications. However, Netflix does not have these written standards; they exist in the judgment of managers and may vary depending on the individual's department, team, manager, and business situation.
Simply put, this standard is to exceed what the company expects, even in some minor aspects of work, striving to do better. This is also a principle mentioned in the new culture: extraordinary and always better.
Jas gave an example: the team she supports is responsible for setting up payment methods in a certain country. The team needs to constantly think about the most effective and concise ways to help customers complete payments: Can the current payment interface be further optimized? Can the customer's payment time be further reduced? What other methods can make it more convenient for customers to pay?
V. How does Netflix conduct performance management? Do they use KPIs or OKRs?
Netflix does not have a formal performance management process like other companies, there are no KPIs or OKRs, and they do not have a PIP when dismissing employees. Typically, everyone will make a plan similar to performance goals before starting a project, and then strive towards the project goals with full effort.
Without formal performance evaluations, how do managers assess employee performance? This goes back to the first question: managers need to use their judgment. In the company, whether a person is performing well or poorly, everyone actually sees it, and as a manager, one should be very clear about it.
Here, Netflix's famous Keeper Test must be mentioned, which means that managers need to constantly monitor and evaluate employee performance to determine if they are suitable to continue staying in the team. If not suitable, managers must take necessary actions promptly.
As mentioned in the &#34;Netflix Culture Deck,&#34; CEO Hastings once mentioned that even employees with satisfactory performance may face the risk of being asked to leave. As mentioned earlier, Netflix does not need employees who meet expectations, but those who exceed them.
Additionally, Netflix places great emphasis on feedback. For example, in addition to the annual feedback cycle, some departments also regularly hold a &#34;Feedback Week&#34; to allow everyone to provide feedback to colleagues working around them collectively
As can be seen, Netflix did not truly abolish performance evaluations, but rather transformed performance management from formalism to actual day-to-day work content, achieving true performance management through continuous feedback from managers on subordinates' daily work.
VI. How does Netflix ensure that it can recruit and retain top talent?
It is well known that Netflix is willing to pay top market salaries for talent. However, in Jas's view, Netflix's ability to attract top talent has three key factors.
Firstly, the company's compensation management approach. Netflix embodies the &#34;freedom and responsibility&#34; concept in its compensation management, with no bonuses in employee compensation, only salary + stock. The company determines the total compensation package for employees, and then employees can choose the proportion of cash and stock in the total package themselves. If you are more practical, you can choose all cash; if you are optimistic about the company's future, you can also convert most of the cash into stock.
By the way, Netflix's stock price has seen astonishing growth over the past decade. I remember when I first translated the &#34;Netflix Culture Deck&#34; in 2018, the stock price was $180, and last week it had risen to $760. Such growth is enough to attract the most outstanding talents.
Secondly, the opportunity to work with a group of the smartest people. Netflix has recruited many top talents, and working with these outstanding talents is the fastest way for a person to grow, which is also highly valued by many outstanding talents.
Lastly, the opportunity to do very interesting things at Netflix. On a large platform of a global company with 13,000 employees, you can access many cutting-edge resources in various fields and do a lot of interesting work. Netflix's managers also think every day about one question: how to ensure that every team member can solve new and exciting problems.
Jas believes that the pace of work at Netflix is fast, with many organizational changes happening regularly. Her own position and responsibilities have also been constantly changing, summed up in the phrase &#34;change is the only constant.&#34; However, even so, being able to work with a group of intelligent people every day, doing what she loves, and constantly bringing a sense of accomplishment to herself, is the greatest attraction that this platform offers to talent.
VII. Epilogue
After the interview, I was deeply moved by what Jas mentioned at the end about how Netflix managers think every day about how to ensure that team members can solve new and exciting problems.
Just imagine, if an employee could spend every day in such a state, how wonderful and attractive work would be for them. And for such an organization, how could it not attract or retain the most outstanding talents

NFLX

This article summarizes Netflix HRBP Jas's views on Netflix culture, emphasizing the management philosophy of "freedom and responsibility" and highlighting the importance of managers' judgment. Jas mentioned that Netflix's reimbursement system requires employees to prioritize the company's best interests, and managers need to accept feedback from colleagues and HRBP to ensure that power is not abused. In addition, Netflix revised its corporate culture this year to reflect business changes, adding the concept of "exciting discomfort"

- The article discusses Netflix's unique "freedom and responsibility" culture, emphasizing the importance of judgment among managers and the transparency within the organization.  
- It highlights recent cultural revisions reflecting business changes, including the new principle of "discomforting excitement," which encourages risk-taking in unfamiliar areas.  
- Additionally, it outlines the proactive role of HRBP in supporting managers and the company's high talent standards, focusing on continuous performance feedback rather than formal evaluations.

A Netflix culture experienced firsthand by an HRBP