How Netflix Reinvented Hr

How Netflix Reinvented HR

Human resource strategies, just about all companies have them. How a company determines what its strategy is going to be can vary between states and even countries. HR can use any number of strategies at their disposal to make their work environment safe, enjoyable, and profitable. Many places use bonuses, stock options and time off to make their employees happy and loyal to their business. Pioneers such as Google and Padagonia have extended time off and encourage a good work life balance. Netfix however seems to be changing the face of human resources.

How Netfix reinvented HR is an article that has been viewed more than 5 million times on the web and has been called one of the most important documents to come out of Silicon Valley by Sheryl Sandberg the COO of Facebook. Netflix changed how to look at HR when Patty McCord, Chief Talent Officer 1998-2012 and CEO Reed Hastings created a Powerpoint slide deck of 127 slides of how they shaped a culture and motivated performance. Seemingly common sense practices like treating employees like adults and letting go of the people whose skills no longer fit into the company but giving them good severance packages seemed so unconventional until other companies started to adopt what Netfix has done.

Around 2001 the successful small company had to lay of about 1/3 of their 120 employees due to factors such as the dot com bubble burst or collapse when many of the internet companies that had cropped up then suddenly failed due to a series of events including the stock market crash of 2000 and then the 9/11 attacks. Then in 2002 DVD players became a hot gift and reinvigorated the DVD by mail subscription service, now Netflix had 30% less employees and more work. This was the start of a new chapter for Netflix, a chance to reinvent itself and its culture. The first thing to do was rebuild their workforce. They soon realized after hearing from one of their employees that “I’ve learned that I’d rather...