How Netflix reinvented HR

HBR has published "Reinventing HR" in 2019 with some very powerful articles - still very relevant and very far from reality. (even before COVID and AI - would love to see what edits we would need to make 🤔 )

Articles are repeating some universal truths over and over. But we all know, just because we know what needs to be done doesn't mean that we can / will / want to do it. (Eating healthy vs planning a pizza night 🍕 )

For today, I wanted to share with you my notes from the article How Netflix Reinvented HR.

1️⃣ Hire, Reward and Tolerate only fully formed adults - If you are careful to hire people who will put the company's interests first, 97 % of your employees will do the right thing.

2️⃣ Tell the truth about performance - Adequate performance gets a generous severance package. (Read this again) It is a pretty blunt statement of Netflix hunger for excellence.

3️⃣ Managers own the job of creating great teams - Employees had the choice of choosing how much (if any) of their compensation would be in the form of equity. It was based on the fact that employees are sophisticated enough to understand the trade-offs, judge their personal tolerance for risk and decide what was best for them and their families.

4️⃣ Leaders own the job of creating the company culture - Train people for business savvy and be aware of the subcultures that may require different management.

5️⃣ Good talent managers think like businesspeople and innovators first and like HR people last - The HR initiatives that improved morale don't exist. Hr departments might throw parties and hand out tshirts but if the stock price is falling, the people at these parties will complain quietly and they will use the Tshirts to wash the cars. (Ouch - that hurted 🤕 )

Should I keep sharing or do we want some digestion time?