As Netflix revamps its corporate culture, rumors are swirling about changes to its famous ‘keeper test’. What will this mean for employees? Find out all the juicy details right here!
The Evolution of the ‘Keeper Test’
Netflix has revamped its renowned culture memo, introducing some notable changes. The ‘keeper test’ is one such key element that has seen an update in how it’s defined and implemented. Originally, the keeper test involved managers asking themselves, “If a team member was leaving for a similar role at another company, would I fight to keep them?” If the answer was “No,” the employee would be given generous severance to find a stronger replacement.
This stringent measure is part of Netflix’s culture of operating more like a sports team rather than a family, emphasizing high performance and swift action on underperformers.
Shifting Perspectives on ‘Keeper Test’
The new version of the keeper test asks, “If X wanted to leave, would I fight to keep them?” or “Knowing everything I know today, would I hire X again?” This subtly shifts the focus to a more holistic view of the employee’s contribution and compatibility with the team.
Netflix aims to make this evaluation process more transparent and encouraging for both managers and team members. By adding a disclaimer, the company clarifies that the keeper test is meant to be a regular conversation topic rather than a looming threat. Employees are encouraged to discuss their progress with their managers openly, reducing the risk of unexpected decisions.
Shortened and Refined Culture Memo
The original Netflix culture memo, which was over 100 pages long, has been trimmed down to just five pages. According to Netflix co-CEO Greg Peters, this was done to better articulate the company’s practices and values.
Peters clarified in an interview with The Verge’s “Decoder” podcast that the initial memo may have projected an image of Netflix as a “harsh and maybe cutthroat place,” which he refutes. The company has since tried to strike a balance, ensuring the memo is neither overly harsh nor too lenient.
Clarification on ‘Freedom and Responsibility’
One significant change in the new memo is the deletion of the section on “freedom and responsibility.” According to Peters, this section was often misunderstood by employees, leading to actions that did not align with company goals. To replace this, the memo now features a section titled “People Over Process,” emphasizing the hiring of “unusually responsible people who thrive on openness and freedom.”
Employee Feedback and Final Adjustments
The latest culture memo took 12 months to complete and incorporated 1,500 comments from employees. This collaborative approach ensured that the final document reflects a more comprehensive and agreeable set of values and guidelines.
Key Takeaways from the New Culture Memo
- An evolved ‘keeper test’ asking different questions but aiming for the same high standards.
- A shortened and more concise memo to better communicate company practices.
- A shift from “freedom and responsibility” to “People Over Process” to avoid misinterpretations.
- Extensive employee feedback to ensure a balanced and fair final document.
Curious to know more? Read the newest version of Netflix’s culture memo here.