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How does netflix work?

How is Netflix able to quickly get rid of hires who don't work out? What's different for them vs other big companies?

  • As observed[1], at most large companies the process to get rid of someone who's not working out can take a very long time, to the point that companies will periodically have "layoffs" in order to more easily separate with underperformers. Netflix has a reputation for allowing managers to quickly terminate employees who aren't working out.[2] What's different at Netflix? [1] [2] http://www.slate.com/blogs/business_insider/2013/07/14/how_to_fire_people_netflix_executive_tells_all.html

  • Answer:

    I used to work there and the answer is quite simple. It is, after all, employment at will and Netflix is simply generous with their severance packages (if you're there less than a year it's 3 months, then 6 months and they are known to go up to 12m+ salary). You must also know that Netflix compensates in cash only, eg your total comp==your cash comp (you can elect to buy stock options but that's another story) so people are generally compelled to accept the severance agreement and move on. And the process, from the manager side, is very streamlined. You notify HR and they take it from there. Turnaround is a day or two. Since this is their standard practice they don't need to do much more from a legal point of view.

Anonymous at Quora Visit the source

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As Anonymous says, many US States operate an "Employment At Will" regime https://en.wikipedia.org/wiki/At-will_employment In which the employer can turn up at your desk without notice and you can be escorted from the building a few minutes later. Provided that the reason for you being selected wasn't Racist, Sexist or because you refused to commit an Illegal act Many US Companies however do try to put a process into the act of "releasing" employees just to make sure that there's no comeback on released employees claiming they were victimized by their supervisor and so getting rid of a underperforming employee can be quite a paper trail But if you're getting rid of the whole department that can be done much quicker We make our At-Will firings pretty quick by offering released employees a generous compensation package that includes funding medical for a few months but the employee has to sign  a form saying they won't bring legal action against us. Typically a release takes less than half an hour

Dave VanKappel

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