By : Tony Snider
Nowadays everybody has seen the trend of going to rent movies from the local video store has essentially died out. This trend has taken place because of the addition of Netflix, a video streaming company that allows you to watch thousands of movies and television shows instantly on your device. Netflix’s genius idea has seen the company take off in recent years, but the way Netflix as a company recruits workers and runs their organization has been just as big in its success. By taking a very specific strategy toward what workers they hire, Netflix has been able to grow steadily into a respected and revered company worldwide.
Photo Credit – Huffingtonpost.com
Netflix has seen incredible growth and success since it began because of its “seven aspects of our culture”. These seven aspects of Netflix’s culture are the company’s priorities and standards that the company is based on. The first aspect is “values are what we value”. This describes how Netflix differs from many companies, as they do not post generic statements about their “integrity” or “respect”. Netflix shows its values by who gets rewarded, promoted, or even let go (Hastings, 2016). The next aspect of their culture is “high performance”, meaning that the company itself aims to employ only those that everybody can learn something from and that can respect and learn from others as well. Coupled along with their “high performance” aspect is “freedom and responsibility”. At Netflix only those applicants that are deemed “fully formed adults” are chosen to join the company, being that they need to be self-motivating, self-aware, self-disciplined, self-improving, and act like a leader. Another of the seven aspects is “context, not control”. This means that the best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people. Another aspect dealing with their management style is “highly aligned, loosely coupled”. This describes how at Netflix their strategy and goals are clear, specific, and broadly understood, yet there are minimal cross-functional meetings except to get aligned on goals and strategy. Next is that they “pay top of market”, meaning that they feel that one outstanding employee gets more done and costs less than two adequate employees. The last of the seven aspects of Netflix’s culture is “promotions and development”. This is easily understood by looking at baseball and the minor leagues. Those that are talented enough get to move up in the world, but you have to continually perform at your highest level to stay in your highest position without getting demoted.
Going along with Netflix’s seven aspects of culture is the way in which they select their employees; “The Netflix Approach”, or only accepting “fully formed adults” (How Netflix Reinvented HR, 2016). This groundbreaking human resource policy was derived under direction of Reed Hastings and Patty McCord. The point of adding the notion of only hiring fully formed adults was implemented for multiple reasons. First off Netflix did not want to hire those workers that cause you the most typical problems. Although some firms offer services to help these workers mesh better, Netflix does not deal with that unneeded work and shies away from these workers altogether. The Netflix Approach has also been very beneficial financially. Since implementing the idea the company has been 22% more profitable, seen 30% lower turnover, and 37% less absenteeism (Zeldin, 2016).
As being part of a professional organization working for my father over the last five years, I have seen many similarities between the way Netflix is ran compared to Miami Industrial Trucks. At Miami Industrial Trucks I work directly underneath my father who is also the hiring manager for the parts division of the company. That being said, my father and I have been involved in every hire for the company over the last few years in that part of the company. Of Netflix’s seven aspects of culture, I feel my father and Miami Industrial Trucks are closely related in three of the seven areas. First off Miami Industrial Trucks is also run with the thought process of “values are what we value”. With this they do not necessarily always take the most qualified applicant, but take the one that is qualified, yet shows true passion and integrity in their character. Miami Industrial Trucks also runs along with the aspect of “high performance”, meaning that managers want every new hire to be able to teach current employees something new, and vice versa. Lastly I feel Miami Industrial Trucks is also ran along the premise of “promotion and development”, meaning that there are many opportunities for growth within the company, but even if you are able to earn those positions you must perform at your very best to be able to hold that spot or you will be demoted for the good of the company.
I feel that I would excel at Netflix, working in accordance with their seven aspects of culture. I feel that I am the type of person that thrives under pressure and am able to rise to the occasion in certain situations. Working for Netflix would push me to be the most productive and honest employee I could be, understanding the consequences that would result otherwise. I love the way Netflix operates, only accepting the best and not hesitating to drop an employee immediately if need be.
(2016). How Netflix Reinvented HR. Retrieved October 07, 2016, from https://hbr.org/2014/01/how-netflix-reinvented-hr
Reed Hastings, Working Keynote Author Follow. (2009). We Seek Excellence Our culture. Retrieved October 07, 2016, from http://www.slideshare.net/reed2001/culture- 1798664/2-We_Seek_ExcellenceOur_culture_focuses
Zeldin, I. (n.d.). Hire only fully formed adults: How soft skills improve your bottom line. Retrieved October 07, 2016, from http://www.huffingtonpost.com/ilya-zeldin/hire-only- fully-formed-ad_b_10361688.html