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Human Resource Management SHR018-2

Introduction - Human Resource Management SHR018-2

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Human resource needs to be managed in an effective manner. The HR department of the company needs to make sure that they are having better strategies which are allowing them to manage and retain the employees in an effective manner. In this report the case study of Netflix would be discussed. The report would be focusing on exploring that how the HR department of Netflix is attracting and retaining their employees in an effective manner. Along with this the report will also focus on exploring the effectiveness of the talent hiring process and rewards practices. Also the study would explore that how Netflix is maintaining their high performance workplace based on the sustainability and ethical HRM system (Agnihotri and Bhattacharya 2021).

Netflix is one of the leading internet subscription service offering firm which is operating at the global level. The company is having effective market position. Netflix is popular for their effective human resources. The company focuses on managing their employees in an appropriate way which is helping them in managing their market position and branding. According to the case study the company is doing well in managing the employees (McCord 2014). But there are a lot more details which needs to be analysed and this report would help a lot in exploring that how the different HR practices are being managed in Netflix. Along with this the study would be focusing on using the theories and models for the critical analysis of the company with the help of better comparison and detailed case study review.


Netflix HR Philosophy and their employee retention, attraction and policy

All the businesses are having different strategies for managing and retaining the employees. Netflix also focus on developing better strategies, policies and programs which helps them in ensuring that they employees are satisfied with their jobs. Netflix is having all the different strategies related to the management of employees. They are having different firing policies and practices. Along with this the company is also facing HR philosophy for employee attraction and retention.

Netflix focuses on having the strategies as per the work culture of the different nations in which they are operating (Butler et. al. 2014). This is an important strategy which was helping them a lot in ensuring that they are managing the employees in an appropriate way. Netflix is having an direct strategy that only the highly experienced candidates are required to be selected for the company. Apart from this only the high performers are required to stay in the company as per the firing strategy of Netflix. The company is much concerned for their performance and for this they are having the best employees. On the basis of the analysis it can be said that Netflix is having the high performance work system (HPWS) in their company which is allowing them in managing the performance of their employees appropriately.

The company is having almost similar strategies for all the employees. In United states the culture of hire and fire is more effective. Netflix is having the position of one of the best employer in United States. The company strictly focus the applying the firing strategy in an effective manner. Under this policy if the employee is not delivering high quality work then the company fire the employee. Due to this reason only the company had the turnover rate of 15% among which major part is of involuntary turnover due to the firing policy of the company.

One of the important HR philosophies related to employees attraction or recruitment is that they focus on selecting the best candidate. Netflix focus on making sure that the company should select the candidate which suits well to their culture. If the employee does not fits to the company culture then it create a lot of issues for both the employees and employer and affect productivity negatively. Netflix is having a Netflix manual for offering detailed knowledge related to the human resource policies and culture which can help the employees in having better knowledge related to the company culture before applying for the job in the company (Neck et. al. 2016). For attracting and retaining the employees Netflix is offering several work benefits which includes different policies. The standard paid time off policy is helping them in satisfying their employee by offering different holidays and paid leaves. Along with this the company is having more transparent pay policy which allows them in making sure that they are offering better pay and compensation to their employees.

As the company is operating at global level the Netflix's American culture does not fits to all the different cultures. Due to this reason as the company focused on internationalisation it has stated creating issues for the company related to cultural different and diversity issues. Although the company had focused on not changing their hiring strategy with the cultural norms of the different nations in which they are operating. Along with this the HR department of Netflix is not having the different formal policies for addressing the HR issues (Augustine and Xavier, 2021). Instead of policies Netflix focuses on working life an sports team in which if the candidate does not plays well then he has to leave the team. It can be said that the retention and attraction policies of Netflix are very effective. This is helping the HR department to make sure that only the highly talented, experienced and high performing employees are working in the team's which is very important. This is helping Netflix in managing their performance and productivity in an effective manner in the international market.

Talent Hiring and reward practices in Netflix

Hiring process of any of the company needs to be effective. This is very important for the firm to hire the most talented candidates for their job role. On the basis of the case study it is clear that Netflix is much more concerned for their productivity and for this they try to select the best candidates. The recruitment process of Netflix is different from many of the top businesses operating in the international market. Netflix does not focus on hiring the fresher’s and instead of it they focus on experienced employees. The company demands high self-sufficiency from their employees as per the case study. Due to this reason the company is hiring only the talented employees (Xu, 2021).

Another important factor on which Netflix focuses while selecting the candidate is that their educational qualifications is not preferred as the company focuses on experience. Apart from this it is very important for Netflix to make sure that the candidate should align well to the company culture and also should have technical knowledge. The major questions in the interview of Netflix are also related to the personality and rest is about the technical knowledge of the candidates. Both the technical knowledge and the candidate's ability to fit in the Netflix culture are the most important thing for being selected by Netflix. The company is having different candidates in their recruitment teams.

Keeping the employee motivated is one of the significant matters of concern for companies. Rewards are the most common type of motivation strategy which is widely used by the companies for keeping the employees motivated. Netflix also focus on offering better rewards to their employees and compensation also for ensuring that all the employees are motivated (Todorova, 2020). According to the Herzberg motivational theory it is very important for the company to pay attention towards the motivational factors. Along with this the companies need to reduce the negative impact of the hygiene factors as they are having the ability to develop dissatisfaction among the employees. If we consider this as per the case study of Netflix then it can be said that the company is offering different rewards and additional benefits which is helping them in enhancing the motivational factors.

The company focuses on ensuring that the employees should not be bounded by the policies and this is quite great. Netflix encourages the employees to focus on the logics and common sense instead of focusing on the formal policies. This is very effective for the company as it would be helping the employees in making sure that they are free from the policies and the company is taking care of their employees (Ramachandran and Flint, 2018). Netflix focuses on the 360 degree informal reviews which are helping them effectively in their continuous performance improvement and this is also helping them in keeping the employees satisfied and motivated. The company is quite clear and transparent related to their different policies of hiring and firing. This is very effective and makes it clear to the employees that how they need to work in the firm. Along with this better HR philosophy is helping the company in keeping their corporate culture and policies appropriate and managing the employees accordingly.

High performance workplace of Netflix with sustainable and ethical HRM system

Performance is the most important thing on which the company focused. Businesses are focusing on applying different strategies and policies which can help them in ensuring that all the employees are working in an appropriate manner (Barclay and Kang, 2019). Netflix is operating in highly complex and competitive business world. They just need to have technologically advanced employees delivering high quality work to the company. Netflix is having diverse strategies in their HR management for making sure that no compromise should be considered in terms of the performance of the employees while working in the firm and the overall performance of the company. According to the company culture of Netflix it is very clear that they are not having much time to pay attention on weak employees and improve their performance. Instead of it they just focus on firing the employees who are not able to deliver high quality work to the company. According to Nazario-Cranz the level of performance of Netflix had increased to a greater extent and for such a firm only the talented employees are required.

The employees of the company had also represented their views on how the company is managing their performance. On the basis of the case study analysis it is clear that the employees are having with the company culture and they try their best to deliver best performance to the company. For ensuring better performance the team work life a family and all the employees are having greater feeling of belongingness towards the company. It can be said that Netflix is having their own strategy for managing the performance of the company and it is really effective for them (Agnihotri and Bhattacharya, 2021).

For the sustainable performance of the company Netflix is focusing on having the sustainable HR system. The HR team focuses on managing the team as an sports team in which all the individuals need to perform their day to day tasks in an appropriate way. All the employees need to have better teamwork and empathy towards each other. These things are common in the sustainable HR system of Netflix. From this it can be argued that Netflix is trying their best to maintain their performance. Along with this they are focusing on keeping the highly skilled and high performing employees for longer period of time.

Ethics are very important for the businesses while managing the employees in an appropriate way. If any of the employee is facing discrimination or any other business. Along with this if the employer is facing issues related the government policies then also it can create issues for the company. In this context Netflix makes their HR system very transparent in which all the stakeholders are having clear knowledge related to the way the company is managing their employees in an effective manner (Van Rooyen et. al. 2021). For all this Netflix is having effective policies and they are focusing on following all the different rules and regulations related to employment. This is helping them in having effective and ethical HR system which is adding value to the company by keeping the employees satisfied with their jobs.


On the basis of the above mentioned report it can be said that Netflix is one of the effective employer which is having great HR strategies. The company is having different and unique strategies for selecting the best candidates which is very effective for them. Along with this the HR philosophy related to the retention and attractions of employees are also good. Although there are controversies that this type of HR management might affect the company negatively but it is not true. Thus it can be concluded that there are both the pros and cons associated with the strategies and policies made by the companies for keeping their workers happy. Along with this all the companies are having their own style of managing their employee. Netflix is one of the renowned companies and due to this reason they are paying better attention on their performance. This is helping them in managing the employees in an effective manner. Thus it can be concluded that Netflix is very effective at managing the employees in an effective manner. Based on the report it can be said that it is very essential for Netflix to make continuous improvement in their performance. For this HRM practices need to be more effective. It can be suggested that Netflix should make some of the changes in their HRM strategies in different culture. This is because of the fact that the culture values of the employees are having major role to play in the way they are managing their work and behaving in the workplaces.


Agnihotri, A. and Bhattacharya, S. (2021) 'Netflix: The Firing Machine'. Strategic Human Resource Management.

Agnihotri, A. and Bhattacharya, S., 2021. Netflix: The Firing Machine?. SAGE Publications: SAGE Business Cases Originals.

Augustine, R. and Xavier, M.S., 2021. A CRITICAL STUDY ON NETFLIX DOCUDRAMA-‘THE SOCIAL DILEMMA’. Media, Culture and Society22, p.24.

Barclay, L.A. and Kang, J.H., 2019. Employee-based HRM: Bereavement policy in a changing work environment. Employee Responsibilities and Rights Journal31(3), pp.131-148.

Butler, T.D., Ellinger, A.E. and Armstrong, C.E., 2014. Performance Benefits of Being a Great Retailer to Work For: A Resource-Based Perspective. ADVANCES IN MARKETING, p.336.

McCord, P., 2014. How netflix reinvented HR. Harvard Business Review92(1), pp.71-76.

Neck, C.P., Houghton, J.D. and Murray, E.L., 2016. Netflix’s HR Policies. SAGE Publications, Inc..

Ramachandran, S. and Flint, J., 2018. At Netflix, radical transparency and blunt firings unsettle the ranks. The Wall Street Journal25.

Todorova, A., 2020. Netflix Organizational Culture-An Environment to Support the Career Development of Employees in a Socially Responsible Company. Nauchni trudove, (3), pp.135-151.

Van Rooyen, J., Pathak, A., Shrestha, P., De Beer, E., Haji, R.A., Yussuf, S. and Hamad, A.U., 2021. Impact of COVID-19 on Big and Small Tech Companies. Journal of Human Resource Management9(2), pp.33-38.

Xu, Y., 2021. Re-understanding Personal and Organizational Mission with Netflix Cultural Manual. Education Reform and Development3(1), pp.34-37.

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