Great HR policy - Netflix

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Netflix's HR practice is so revolutionary that Sheryl Sandberg called it one of the most important documents ever to come out of Silicon Valley.

 The company is treated like a Pro Sports team which means Stars are hired in every position

 Key Highlights of the policy are

Face to Face 360 degree feedback.

 People who are not good enough are given a very generous severance package

 Attendance is not measured. No 9am to 5pm policy

 No Clothing policy 

 The company's Expense policy is 5 words - "Act in Netflix's best interest" 
eg: Travel as you would as if it were your own money. Employees booked their trips online on their own.

 Vacation Policy - No policy, take a vacation whenever you wish to. If you work in accounting or finance, you shouldn’t plan to be out during the beginning or the end of a quarter, because those are busy times. If you want 30 days off in a row, you need to meet with HR. Senior leaders are urged to take vacations and to let people know about them.

 Pay Top of market. At Netflix Market Compensation applies whether it is during Hiring or during Increments. Every year, each employee gets benchmarked to the top of the market.
  • Some people's salary move up very quickly because their value in the marketplace is moving up.
  • Some people's salary will stay flat because the nature of their work and the value growth in the market is flat. However, they will always be at the top of market for that position.
  • This is very similar to sports teams. Whether the team is doing well or not, the team will still pay players the market rate 
Expect people to manage their own career growth 

Also read Patty McCord's piece in Harvard Business Review. Patty McCord created Netflix's HR policy

Read the complete presentation by Reed Hastings, CEO of Netflix here and here. 

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