Netflix Invented Hr

4567 Words Oct 4th, 2014 19 Pages
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JANUARY–FEBRUARY 2014 REPRINT R1401E

Trust people, not policies. Reward candor. And throw away the standard playbook. by Patty McCord

How Netflix Reinvented HR

SPOTLIGHT ON TALENT AND PERFORMANCE

This document is authorized for use only by Janet Hughes (JAH612@LEHIGH.EDU). Copying or posting is an infringement of copyright. Please contact customerservice@harvardbusiness.org or 800-988-0886 for additional copies.

SPOTLIGHT ON TALENT AND PERFORMANCE

Spotlight

ARTWORK Freegums, Good Vibrations 2011, acrylic on wood, 8' x 15'

This document is authorized for use only by Janet Hughes (JAH612@LEHIGH.EDU). Copying or posting is an infringement of copyright. Please contact customerservice@harvardbusiness.org or
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subscriber base grew to nearly 29 million. All that aside, the approach is compelling because it derives from common sense. In this article I’ll go beyond the bullet points to describe five ideas that have defined the way Netflix attracts, retains, and manages talent. But first I’ll share two conversations I had with early employees, both of which helped shape our overall philosophy. The first took place in late 2001. Netflix had been growing quickly: We’d reached about 120 employees and had been planning an IPO. But after the dot-com bubble burst and the 9/11 attacks occurred, things changed. It became clear that we needed to put the IPO on hold and lay off a third of our employees. It was brutal. Then, a bit unexpectedly, DVD players became the hot gift that Christmas. By early 2002 our DVD-by-mail subscription business was growing
January–February 2014 Harvard Business Review 3

This document is authorized for use only by Janet Hughes (JAH612@LEHIGH.EDU). Copying or posting is an infringement of copyright. Please contact customerservice@harvardbusiness.org or 800-988-0886 for additional copies.

COPYRIGHT © 2013 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

SPOTLIGHT ON TALENT AND PERFORMANCE

like crazy. Suddenly we had far more work to do, with 30% fewer employees. One day I was talking with one of our best

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