Can Netflix Survive in the New World It Created?
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Re: Can Netflix Survive in the New World It Created?
#2Spoiler: It's a long read!
> Does this still holds? Is there any other organization in dissimilar industry where this works?
McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord says, “then you have to get rid of the notion of retention. You’ll have to fire some really nice, hard-working people. But you have to do it with dignity.
“I held the hands of people weeping, saying, ‘I want to be here forever,’ ” McCord says. “I would tell them, ‘Nothing lasts forever.’ I would say to Reed, ‘I love them, too, but it is our job to be sure that we always have the right people.’ ”
> Ironically, in 2011
Hastings decided to re-evaluate everyone in the executive ranks, using the litmus test McCord taught him: Would he hire them again today? One of the people this led him to push out was McCord.
Re: Can Netflix Survive in the New World It Created?
#3Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
And this precisely is why we Millenials have no qualms about leaving a job. They have no problem divorcing us because of some vapid "performance" metric.
How do they quantify understanding how to get things done in that org? I know with my job, I'm learning how the institution hinders growth, except through certain channels. That meta-knowledge is absolutely essential... yet seemingly ignored.
Re: Can Netflix Survive in the New World It Created?
#4Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
> You’ll have to fire some really nice, hard-working people. But you have to do it with dignity.
I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible. Even totally sucking at your job isn't acceptable reason for employment contract termination, that'd be just a reason for further training. You'll have to go through different hoops, usually concerning the company's financial needs -- and which high achiever would want to join a company that announces dire economical times?
This (easier to get rid of people) is also a reason behind a recent trend of people-for-hire companies and freelancers-only requirements.
Disclaimer: probably does not apply to all of Europe.
Re: Can Netflix Survive in the New World It Created?
#5Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
> You’ll have to fire some really nice, hard-working people. But you have to do it with dignity. I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible. Even totally sucking at your job isn't acceptable reason for employment contract termination, that'd be just a reason for further training. You'll have to go through different…
>I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible.
This probably explains why I've never seen my German counterparts ever being fired. The lowest performers are endlessly shuffled between projects, maybe hoping they would leave voluntarily ?
Re: Can Netflix Survive in the New World It Created?
#6Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
I hope there's more to it than that. Firing "really nice, hard-working people" is stupid. There are far better things to do with such people than firing them. All that teaches people is to have no loyalty whatsoever to their company since the company's leader directly gives them a reason not to. All that leads to is "really nice, hard-working people" you would not fire jumping ship at the first sign of a slightly better deal, because why not?
Re: Can Netflix Survive in the New World It Created?
#7Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
Did Reed hold McCord's hands and say 'Nothing lasts forever.'
Re: Can Netflix Survive in the New World It Created?
#8Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
> You’ll have to fire some really nice, hard-working people. But you have to do it with dignity. I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible. Even totally sucking at your job isn't acceptable reason for employment contract termination, that'd be just a reason for further training. You'll have to go through different…
Isn't it only difficult to let go employees who've been in the job for more than 2 years? I'm pretty sure that how it is in the UK at least.
Even then, there's the option of a PIP, which allows you to quantify their ineffectiveness and give you good cause for letting them go.
Re: Can Netflix Survive in the New World It Created?
#9Spoiler: It's a long read! > Does this still holds? Is there any other organization in dissimilar industry where this works? McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord…
And this precisely is why we Millenials have no qualms about leaving a job. They have no problem divorcing us because of some vapid "performance" metric. How do they quantify understanding how to get things done in that org? I know with my job, I'm learning how the institution hinders growth, except through certain channels. That meta-knowledge is absolutely essential... yet seemingly ignored.
Instinctively and ideologically I mostly oppose the idea of this lack of loyalty toward employees. At the same time, for some reason it bothers me less the way it is presented to work within Netflix. I'm not sure why, though.
Maybe it's to do with the fact that there are plenty of jobs in tech right now and Netflix apparently pays very well, enough for a future employee to accept that disadvantage. Partly it's also because of the transparency of it all. Another thing is that it can benefit the employee too, long term. I've worked in many different companies and there were always a bunch of 'holders-on' who held everyone back and didn't even seem happy themselves. I often thought they and the team would be much better off if they found work somewhere else where either they'd feel challenged to develop themselves further, or where their current skills were good enough.
I still would not choose to run a company that way myself, but provided that 'performance' is measured in a somewhat accurate way, provided that the compensation offsets this risk, provided that there is honesty about it all, and provided that there are alternative jobs one can find afterwards, well, then I'd at least be curious to see if it works in practice.
(and decreasing 'institutional knowledge' is one very big advantage, in my opinion.)
Re: Can Netflix Survive in the New World It Created?
#10Earlier quoted context omitted.
> You’ll have to fire some really nice, hard-working people. But you have to do it with dignity. I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible. Even totally sucking at your job isn't acceptable reason for employment contract termination, that'd be just a reason for further training. You'll have to go through different…
>I wonder if this is part of the reason why there are not too many Netflix-like high achieving companies in Europe -- firing people is not possible. This probably explains why I've never seen my German counterparts ever being fired. The lowest performers are endlessly shuffled between projects, maybe hoping they would leave voluntarily ?
That's perhaps one way. Or assigning the employee no tasks at all, just an empty room with a desk and chair, and a requirement to be there during normal working hours. No sane person takes that for a longer time.
Companies do have longish probation periods (say, 6-9 months) before the contract is final. Within this period either party can cancel the employment at will, with no notice period. This is meant to be the testing time during which both parties can confirm that they are happy with the deal.