{"id":999881766,"date":"2018-12-27T15:18:00","date_gmt":"2018-12-27T15:18:00","guid":{"rendered":"https:\/\/dice.npgdev.com\/?p=464635100"},"modified":"2018-12-27T15:18:00","modified_gmt":"2018-12-27T15:18:00","slug":"culture-termination-employees-seem-like","status":"publish","type":"post","link":"https:\/\/dice.npgdev.com\/hiring\/recruitment\/culture-termination-employees-seem-like","title":{"rendered":"A Culture of Termination That Employees Seem to Like"},"content":{"rendered":"<p>We hear a ton of great things about Netflix\u2019s benefits and corporate culture, such as unlimited parental leave and an  <a href=\"https:\/\/www.dice.com\/career-advice\/netflix-perks-pay-packages\">overall good pay\/perks package<\/a>. The firm  <a href=\"https:\/\/www.dice.com\/career-advice\/court-strikes-down-net-neutrality-netflix\">fights for net neutrality<\/a>, and people  <a href=\"https:\/\/www.dice.com\/career-advice\/companies-tech-pros-want-work\">want to work there more than at other major tech companies<\/a>. But once a tech pro is hired at Netflix, it might prove difficult to keep their job for the long term. Specifically, Netflix has something called the \u201ckeeper test,\u201d which is a measure for management to fire or retain staff. It\u2019s very simple; a manager is supposed to ask: \u201cIf one of the members of the team was thinking of leaving for another firm, would I try hard to keep them from leaving?\u201d If the answer is \u201cno,\u201d that team member is out. One former marketing vice president told  <a href=\"https:\/\/www.wsj.com\/articles\/at-netflix-radical-transparency-and-blunt-firings-unsettle-the-ranks-1540497174\">The Wall Street Journal<\/a>  they were fired for failing the test, but the \u201cofficial\u201d reason for termination was \u201cpoor cultural fit.\u201d Meanwhile, a  <a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2018-10-26\/netflix-s-firing-culture-works-for-netflix-nflx\">Bloomberg<\/a>  article revisits the early days of Netflix, during which a similarly opaque management dictum governed hiring and termination policies. CEO Reed Hastings and then-HR Chief Patty McCord wanted to encourage \u201cindependent decision making\u201d among employees, but also retain only those who were \u201chighly effective.\u201d As a result, they nurtured a culture in which even longtime employees were ruthlessly evaluated; if they were no longer the best at their role (at least in the eyes of their manager), they were out. Ultimately, this corporate mindset  cost McCord her job. When Hastings questioned whether he\u2019d retain McCord for her own job, he realized he wouldn\u2019t, so he fired her. Netflix now has a formal tool called \u201c360,\u201d which allows anyone at the company to review anyone else (including Hastings). The tool also provides context to everyone on why someone was let go\u2014which also feeds into Netflix\u2019s original five rules for the company (among them: \u201cshare information openly, broadly and deliberately,\u201d and be \u201cextraordinarily candid with each other.\u201d) The \u201c360\u201d and the \u201ckeeper test\u201d are intertwined. The crux of these tests is to help managers decide (as Hastings did with McCord) if they would fight to keep an employee around. If the answer is no, that employee is terminated or asked to leave. Netflix\u2019s 360 tool provides broad context for personnel decisions. It\u2019s meant to encourage objectivity, but it also seems to produce obscure, sometimes startling changes in the hierarchy. Last year, Hastings terminated chief product officer Neil Hunt. The reason given was \u201ca lot has changed\u201d as the company began producing original content and expanding into new markets outside the United Sates. Moreover, one of Hunt\u2019s charges was apparently poised to take over his role. Even so, his dismissal didn\u2019t follow the usual corporate playbook for such things. Neither Hunt or McCord disagreed with Hastings\u2019 decisions. Bloomberg also notes that Netflix\u2019s termination rate isn\u2019t incongruous with the national average, and the company has a far lower percentage of people quitting versus the average U.S.-based company. But a company\u2019s culture starts and ends with its leader. This culture of \u2018objective\u2019 termination works for Hastings, and it\u2019s meant to create an effective leadership team in his likeness. But it could also create an office where people are in near-constant fear for their jobs. Simply put, you can\u2019t copy it, because you\u2019re not Reed Hastings, and your company isn\u2019t Netflix. Nor can you likely become him; employees describe him as a man \u201cunencumbered by emotion.\u201d Though they mean that in a good way (we think), it\u2019s not something you can just choose to emulate. As Netflix evolves, these hiring tests may not stand the test of time internally, and it might not serve you well to emulate them in your own company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We hear a ton of great things about Netflix\u2019s benefits and corporate culture, such as unlimited parental leave and an overall good pay\/perks package. The firm fights for net neutrality, and people want to work there more than at other major tech companies. But once a tech pro is hired at Netflix, it might prove [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":464635100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2159],"class_list":["post-999881766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-retention"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.2 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Culture of Termination That Employees Seem to Like - Dice Hiring<\/title>\n<meta name=\"description\" content=\"We hear a ton of great things about Netflix\u2019s benefits and corporate culture, such as unlimited parental leave and an overall good pay\/perks package. 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