Netflix Employee Review
Netflix – “Netflix: Culture of Fear”
33 of 39 people found this helpfulPros
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 Senior Management
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.
Comments (23)
Thanks for your review
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"Culture of fear"? What are talking about? Seriously, I have no idea what you're getting at. I've screwed up, missed deadlines, etc., and I'm still here (2+ years now, as an engineer). It's little different from any other job, really, except the pay is better and I'm treated like a responsible adult.
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A Netflix Engineer - states "description is so far from the truth" BUT ALSO ADMITS that "process is kept loose on purpose". OK so which is it clown? You can't have it both ways. Either I'm wrong or I'm right. You can't make a blanket statement that this post is incorrect AND THEN ADMIT that my description of the lack of process is correct. If you admit that there is no process then you certainly see the same Netflix that I see. Your comment is also incredibly similar to the one you posted a few minutes later under the name Current Netflix employee.
Current Netflix Employee - states "we have insurance dude". Yes, you have insurance WHICH YOU PAID FULL PRICE FOR. Most high tech employers cover insurance costs (to some degree). At Netflix you pay hundreds of dollars each month for something most people get for free. I am just trying to make the point that the "above market" wage is not really that far above the market. Since you pay full price for health insurance your wage is much closer to market than you realize.
When it comes to the wage, you also should take into account the time you will spend looking for a job after you are fired (well, not you, since you're probably an HR stooge trying to cover for the company). But real Netflix employees know that as soon as they are not needed, or as soon as they are considered "average" they are going to be jobless. You really should work the short term nature of the job into the hourly rate you are paid. Contractors usually get a 30%-50% bump because of the short term nature of the job. So unless your rate is at least 30% over market you are being taken advantage of, in my opinion.
Scallywag - claims "cyberwarfare". Let me suggest something Scallywag. Read through the positive Netflix job reviews on this site. Watch for sentence length, word choice, length of review, and points that are made. Many of these reviews were written by the same person. Just read them and you will see. If there is any cyberwarfare going on it's certainly on the side that doesn't want you to hear about the culture of fear at Netflix.
To wrap up, I just want to say I am really glad the conversation continues. I think the more pressure that is put on Netflix the more likely they are to change the culture of fear. Just because I did not enjoy working at Netflix (yes, I was a real manager there, just email me and I'll tell you all about it) does not mean I wish them ill will. I have many friends that still work there. When I hear about the latest person that's been let go I feel horrible. Because I know a life has been disrupted, a career path has changed, and someone is now out of work.
And if anyone still doubts that I was an employee, I can pretty much clear up that detail right now: the Jill Bee box lunches sucked. If you ever worked in Los Gatos you know what I'm talking about. Good luck to all the former Netflixers, may you never work in such a messed up nightmare of a company again.
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Every office has its politics and its disgruntled employees. You can find somebody who hates management at every company on earth. That doesn't mean it's an especially dysfunctional company.
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1) There is no process at Netflix. This is pretty well documented.
2) This means that there is also no formal performance review process. This, again, is pretty well known. At no point during your tenure does your manager need to submit something to HR that affirms if you are a superstar or not. There is a yearly "360 review" in which your peers send you polite emails. But this is not a binding review of your performance. Your manager can, at any point, walk down to HR and say "I need to fire that engineer I just hired" and as long as he has warned you at least once about whatever issue he's come up with, he will most likely be supported in that action.
3) Someone in your group got fired this year. And that person never had a formal review. That person has no way to support their position that they are, in fact, doing their job as expected (other than to get other, terrified employees to go on the record). It may even be that the whole point of the "no process" policy is that terminated employees have no evidence with which to contest their termination.
4) On the day that guy was fired, he was offered a huge pile of cash to not sue the company.
I think even you can admit to these things.
So I ask you, Netflix-engineer-that-has-seen-dozens-of-people-walked-out-the-door-but-still-defends-the-practice, why is your company offering people months and months of salary upon their termination? Doesn't this seem at all fishy to you? If the company had a termination policy that could stand up in court, wouldn't they just walk the guy out? Why the big payoff?
I'm sure you have some great excuse for your company's behavior. It was my company too, once. But the first day I walked into the building I could tell that something was wrong. First it was the stories I heard from the coworkers. Next it was the abrupt departures of key staff members. Then it was the strong suggestion that I start terminating people on my staff. If you have any kind of moral compass you must have noticed that something is wrong at Netflix. Maybe not in every single department, but in many of them.
I truly hope that you are one of the very few, very lucky ones that has been able to turn a blind eye to what goes on there. Did you know that at three years of service you are one of the most senior people in the entire building? I hope you use your senior status to encourage management to develop employees and not just pay them off.
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1) Not true. For engineering, there is no structured and rigid process. A good thing in my book, but you seem to equate process with structured and rigid process.
2) Your description of the performance review process is inaccurate.
3) Nobody in my group was fired this year. Everybody in my group has had reviews.
4) Netflix advertises that it is a meritocracy and if people are not star performers then they get a generous severance package. I'm not certain how that's a pay off if that's the expectation going in.
I would recommend that anybody who may be interested in working at Netflix talk to some current employees and former employees, as well as read the culture deck (it is accurate how things work there).
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Because I'm pretty certain you're not going to leave a name or any other shred of proof, right? My thread is filled with detail. And I am not that hard to contact. But all I'm reading now is "that's not accurate", "nobody was fired". You clearly never worked at the company I worked at.
At the Netflix that I worked at they recently let the entire PS3 client team go. Do you work at that Netflix?
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Just to clarify, I'd recommend talking to several current employees and secondarily talk to former employees as well as read the culture deck that was published last year.
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For anyone else that is still reading this thread - You might be a bit curious about the kind of feedback you get in a culture that fires first and asks questions later. On the team that I managed, two employees happened to send each other really vicious review comments. My guess would be that both wanted to get the other one fired. At Netflix, if you can be blamed for something of weight, you probably shouldn't get too attached to your desk. So you can kind of understand the logic.
But what happened was that both of the employees were fired (by the next person to come along and manage the team). I hope this illustrates the problem the Netflix "purity test" causes. In a system that values only purity, any discord is soon stomped out. So as soon as one guy gets email accusing him of something, he has to make a counter-accusation if there is to be any hope for him to keep his job.
Imagine how stressful it would be to get an email accusing you of some screw-up. And the kind of fight or flight mechanism that would kick in when you get it. This is the culture of fear that I am talking about.
Now imagine how stressful it would be to get an email that merely asks about a screw-up that occurred. Would you want to admit to any responsibility for this problem? Remember, as soon as you admit to something you have now given someone the kind of ammo they need to end your career. If that person ever needs to point a finger to save their own hide guess where it will be pointed? At you, if you are foolish enough to admit to any participation in the screw-up. Thus the ass covering and the low-grade daily fear that permeates the ranks.
If your team ever caused the site to go down, you know the fear that I speak of. If your team ever failed to get content on the site in a timely manner, you know the fear that I speak of. If your team ever, in any way hindered a product launch, you know the fear that I speak of. If your team ever worked on client code or a business process or a quality control process that was no longer needed by the company, you know the fear that I speak of. If you spend Christmas Eve and Boxing Day griefing my Glassdoor post, then maybe you don't know what I'm talking about.
To the rest of my friends at Netflix I wish you all a New Year free of fear. Maybe this year my wish will come true.
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For anyone else that is still reading this thread - You might be a bit curious about the kind of feedback you get in a culture that fires first and asks questions later. On the team that I managed, two employees happened to send each other really vicious review comments. My guess would be that both wanted to get the other one fired. At Netflix, if you can be blamed for something of weight, you probably shouldn't get too attached to your desk. So you can kind of understand the logic.
But what happened was that both of the employees were fired (by the next person to come along and manage the team). I hope this illustrates the problem the Netflix "purity test" causes. In a system that values only purity, any discord is soon stomped out. So as soon as one guy gets email accusing him of something, he has to make a counter-accusation if there is to be any hope for him to keep his job.
Imagine how stressful it would be to get an email accusing you of some screw-up. And the kind of fight or flight mechanism that would kick in when you get it. This is the culture of fear that I am talking about.
Now imagine how stressful it would be to get an email that merely asks about a screw-up that occurred. Would you want to admit to any responsibility for this problem? Remember, as soon as you admit to something you have now given someone the kind of ammo they need to end your career. If that person ever needs to point a finger to save their own hide guess where it will be pointed? At you, if you are foolish enough to admit to any participation in the screw-up. Thus the ass covering and the low-grade daily fear that permeates the ranks.
If your team ever caused the site to go down, you know the fear that I speak of. If your team ever failed to get content on the site in a timely manner, you know the fear that I speak of. If your team ever, in any way hindered a product launch, you know the fear that I speak of. If your team ever worked on client code or a business process or a quality control process that was no longer needed by the company, you know the fear that I speak of. If you spend Christmas Eve and Boxing Day griefing my Glassdoor post, then maybe you don't know what I'm talking about.
To the rest of my friends at Netflix I wish you all a New Year free of fear. Maybe this year my wish will come true.
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Most "stars" would not tolerate this kind of system. As soon as ass-covering is rewarded and risk taking is punished the "stars" usually head for the door. And what's with all the "star" rhetoric anyway? It's just a way to pit the employees against the terminated. An "us" versus "them" mentality.
Potential candidates need to know what they are getting into. It doesn't help anyone to try to hide the nature of the beast. So thanks for finally admitting to these things.
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If this is really true, the fear of making a mistake would discourage most people into playing it safe. I hope there is a better balance than the incentive to not getting fired.
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There are pockets of perfections with great managers but that only lasts until the manager is asked to leave... and that happens sooner than later to all managers and most directors.
'Prospective employee' - its such an attractive concept to be part of the team where you don't have to deal with poor performers. It could sound so liberating to be able to fire people without the 6 month performance plan, but Netflix has carried it way too far.
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