Netflix

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  www.netflix.com
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Netflix: Culture of Fear

  • Comp & Benefits
  • Work/Life Balance
  • Senior Management
  • Career Opportunities
Former Employee - Manager in Los Gatos, CA
Former Employee - Manager in Los Gatos, CA

I worked at Netflix

Pros

The pay is above market. Not a lot above market, but a bit above market. The drawback is there are absolutely no benefits to speak of (no health benefits, no training, no daycare) so that above market pay gets eaten up pretty fast by real world needs.

Cons

A total fear of failure permeates the ranks. Netflix basically gives you a warning on your first mistake, and then fires you after your second mistake. This is why the annual turnover rate is well over 20%. Since there is an entirely new set of employees every few years, nobody knows what process to follow, and everything is chaotic. HR solves this by saying "there is no process for anything! Make it up as you go along!" Sure, if I fired all the employees every few years I'd stay away from process too.

The key problem is that with all the firings most employees spend the day simply trying to find cover. The ass covering at Netflix is legendary. Nobody wants to innovate. Nobody wants to reach outside their comfort zone. Netflix has created a culture of fear, and the way in which they manage terminations reinforces the culture of fear (they immediately demonize the terminated employee, and try to make the termination serve as a lesson to others).

The culture of fear is so ingrained in Netflix that many managers only have one tool for managing their directs, and that is to threaten to fire them. There simply is no other process for managing poor performance (remember, there is no process - they will admit this to you if you ask).

And finally, the last thing you should be warned about is their "high performance" culture. Their justification for all the firings is that the fired employees weren't high performers. But since there is no process, no record-keeping, there is no objective measurement of performance. So "high performers" end up being the employees that get along with the boss and keep a low profile. "High performers" at Netflix are not employees that take risks, interact with outside groups, or produce a high volume of work.

Netflix loves to talk about high performance but they have the lowest standard for high performance that I've ever seen. They are completely happy to manage with fear, however. If you put those two insane concepts together you end up with a rather hysterical environment.

Advice to ManagementAdvice

So you guys did one thing well, a long time ago, and you've been marginally improving that business (DVD rental) ever since. Your astoundingly high turnover rate worked in that world, because all the processes were in place. But now you are trying to get into the streaming business, and that business only runs with knowledge workers at the helm. And guess what? Knowledge workers are pretty well-connected. The word is out that Netflix does not value its employees and as a result it's going to be harder and harder to staff your new ventures. You really need to find the groups at Netflix with the highest turnover and keep those managers away from the streaming business. You have some managers that simply do not know how to manage, they only know how to fire and hire. As much as you love to say that firing and hiring is what management is all about, you could not be more wrong. Find the teams with low turnover, they are the teams that work in spite of your chaotic work environment.

Doesn't Recommend
Disapproves of CEO

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  1. 2 people found this helpful  

    hit or miss

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Career Opportunities
    Current Employee - Customer Service Representative in Hillsboro, OR
    Current Employee - Customer Service Representative in Hillsboro, OR

    I have been working at Netflix

    Pros

    it will be hit or miss if you make it, some do some don't it's almost random or luck of the draw

    Cons

    a lot of turn over, you get hired with out knowing that in 2 weeks only 50% or less ppl make it to next level

    Advice to ManagementAdvice

    be straight with ppl just cuz u get hired doesnt mean you have a job

    Approves of CEO
  2.  

    Call center job

    • Comp & Benefits
    • Work/Life Balance
    • Senior Management
    • Career Opportunities
    Current Employee - Customer Service Representative in Portland, OR
    Current Employee - Customer Service Representative in Portland, OR

    I have been working at Netflix

    Pros

    Top pay if your of high intelegence you will advance given all tools necesary to do the job leading technology

    Cons

    not alot of personality or diversity of management and empoyees. Very competitive for performance

    Advice to ManagementAdvice

    Mix up the management team to have more personality not everyone is a rocket scientist

    Approves of CEO
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