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    Netflix: An Employer Brand Built on Freedom and Responsibility

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    When it comes to company culture, Netflix is a force to be reckoned with. Its famous “Freedom & Responsibility Culture” presentation has made waves and introduced ideas that are now commonplace, like unlimited paid time off and a radical approach to employee empowerment.
    But what’s really behind Netflix’s unique approach to company culture? And how do they attract and recruit top talent in both tech and entertainment?
    We sat down with Sergio Ezama, Chief Human Resources Officer at Netflix, to find out.
    Simplicity is Key
    At Netflix, everything is based on five simple principles:

    Encourage decision-making by employees
    Share information openly, broadly, and deliberately
    Communicate candidly and directly
    Keep only your highly effective people
    Avoid rules

    These guidelines inform all sorts of management policies at Netflix, from their unlimited vacation policy to their five-word expense policy: “Act in Netflix’s best interest.”
    This management structure, which Netflix sums up as “highly aligned and loosely coupled,” enables them to grow while still retaining the ability to make big pivots quickly. In short, it’s how they were able to transition from mailing DVDs directly to customers into becoming a video streaming platform, and then make the jump into producing their own high-quality content.
    Working with the Best
    Ezama quickly points out that the Netflix culture memo is an external document, not an internal one. They want it to be the first thing a candidate reads about the company and the first document you receive if you’re applying for a job.
    “We want to strike a balance between being a bit different, being credible, and being aspirational,” Ezama says. That means putting what they stand for front and center and being OK with the fact that it’s not going to appeal to everyone. The work is challenging, and excellence is expected because that’s what it takes to be the best at what you do.
    For Ezama and the candidates he’s looking for, the chance to be on a dream team that comes together to solve very challenging problems makes working at Netflix so rewarding. It’s the central Employer Value Proposition that drives all of their employer branding work.
    “Industries will change over time, and cultures will change over time,” he says, “but working with the best people is something that will remain constant.”
    Measuring Success
    As the CHRO of a large organization, Ezama is passionate about measuring the success of employer branding efforts. When someone comes to him with an idea, the first thing he’s looking for is conviction. Are you passionate about this? Are you really, truly behind this? And secondly, what is the evidence? What output can we measure?
    At Netflix, they rely on the Employer Brand Index to give them the data they need to measure their employer branding efforts. “The work that we do with Link Humans helps us understand if we’re being competitive or not, not only with Netflix but also relative to those we compete against,” Ezama says.
    So, what’s the takeaway?
    Netflix is a company that is committed to simplicity, excellence, and working with the best people. If you’re looking for a challenging and rewarding work environment where you can be part of a dream team that solves big problems, then Netflix might be the place for you.
    But be warned: Netflix is not for everyone. The work is challenging and excellence is expected. If a candidate is not up for the challenge, then it’s probably best to look elsewhere.
    But if they are ready to join a team of the best and brightest minds in the world, then Netflix is the place to be.

    To follow Sergio Ezama’s work, connect with him on LinkedIn. For help gathering data and insights you can act on to improve your own company, get in touch.
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      Will Unlimited Annual Leave Become the New Business Normal?

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      Increased productivity, heightened workplace morale, and more competitive benefits packages – these are some of the positive impacts that companies have reported since implementing the ‘unlimited holiday’ scheme.
      This new take on holiday allowance first started to grow within US-based tech start-ups as a way to stand out from their larger competitors but has since been embraced by larger brands – including Netflix and LinkedIn. As a testament to how much the scheme has grown, a recent job board report showed that positions offering the scheme had increased by 20% over the last year.
      How does the scheme work, and will it benefit the business and employee equally?
      There is no rule book for the unlimited holidays offering, and each business has tailored the value proposition differently around the levels of flexibility they’re able to offer their employees – some with success, and others with less so.
      A well-known success story of the Scheme is Roku, a TV Streaming app company based in the US, who no longer offer an official holiday allowance to their staff, but instead promotes the ethos that if your allocated work is completed you can take as much time off you like. The positive result of this can be seen in their 72% net promoter score – with impressive marks given for work/life balance.
      The scheme was less successful, however, for CharlieHR – a software company founded in 2015. Their COO Ben Gately explained in an interview that implementing unlimited holidays created anxiety within the workplace, causing the employees to take less annual leave than when they were given the standard 25 days.
      Although this scheme has mainly been seen within companies founded in the United States, it’s started to move across the pond over recent years. Warren Butler, Marketing Director of the UK-based Microsoft Dynamics Partner, Preact, had the following comments on how the scheme has benefitted their business:
      “We recently implemented the concept of unlimited holidays within our growing team to demonstrate the trust we have in our employees, which they had more than earned since suddenly having to work remotely due to the pandemic. It’s proven fantastic for business morale and applicants for new roles have doubled since we started promoting the benefit on our job specs.”
      Preact is one of the many growing UK-based companies that have adjusted their holiday scheme in this way and seen a positive effect on their employee’s wellbeing. Although the approach isn’t effective within all organizations, these types of flexible benefits will become increasingly necessary to remain competitive within the employment market.
      How to assess if the scheme will work for your business
      If you’re trying to implement new employee benefits within your business and you’re considering the unlimited holiday scheme, here are a few different ways companies have pushed out the offering within their businesses:

      Buy Your Holiday: The most common use of the scheme is allowing employees to purchase extra holiday days by taking a cut in their wages. This can, however, cause resentment within teams if people are in different positions financially.
      Ultimate Flexible Working: This is the scheme that Roku has implemented within their business and has worked well for their employees. For this to be successful within your organization, it’s important to monitor people’s workloads to ensure the scheme is fair.
      Commission Based: This can be a great way to incentivize teams within a business and push productivity, this version of the scheme would have to sit on top of the existing annual holiday allowance.

      Whichever way you intend to push the scheme within your business, it’s essential that you communicate it throughout the workforce on an ongoing basis and monitor productivity alongside holidays taken.
      By Lauren Fowles of Preact.
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