When it comes to hiring employees, most companies focus on finding the right fit for their team. But what about rehiring? Netflix is challenging managers to ask themselves a tough question: would you rehire your employees? And if the answer is no, they’re encouraged to take action and let them go. Let’s dive into this unique approach to employee management and its potential impact.
Netflix is known for its unconventional approach to business management and corporate culture. This time, it’s their keeper test that’s making waves. Designed to ensure only the most valuable employees stay on board, Netflix urges managers to ask themselves a crucial question: “Would I rehire this employee today, knowing everything I know about them?” If the answer is no, it might mean it’s time to let that employee go.
Rethinking Employee Retention Strategies
Netflix’s keeper test encourages managers to continuously evaluate their team. The idea is simple: managers must ask themselves, “If this employee wanted to leave, would I fight to keep them?” This strategy might sound harsh, but Netflix believes it fosters a high-performing work environment where only the best fit remain.
Encouraging Open Communication
Even though the keeper test may sound intimidating, it actually aims to promote ongoing dialogue between managers and their team members. Netflix encourages these regular discussions to avoid any unpleasant surprises. This open communication means that employees always have a clear understanding of their performance and areas of improvement.
Support Through Difficult Times
Despite the rigorous evaluation process, Netflix doesn’t want employees to fear for their jobs during tough times. Managers are encouraged to consider the overall performance and potential of the employee rather than focusing on isolated mistakes. This means employees are given the opportunity to bounce back and continue contributing their unique talents.
The Story Behind the Keeper Test
The keeper test has a charming origin story tied to Netflix cofounder Reed Hastings. The term “keeper” comes from a childhood memory of Hastings catching a fish and his father remarking, “That’s a keeper, Reed!” This anecdote underscores the value Netflix places on retaining valuable team members.
A Sports Team, Not a Family
Unlike many companies that see their employees as a family, Netflix likens itself to a professional sports team. In this analogy, performance and the right fit for every position are prioritized over familial bonds. Netflix believes this approach pushes the company to achieve higher performance by always having the best-suited individuals in each role.
In It for the Bold
Netflix acknowledges that their high-performing and risk-tolerant culture isn’t for everyone. Team members must value experimentation, enjoy challenges, and have the resilience to thrive. The company looks for individuals who prefer excitement and innovation over stability and consistency.
Freedom and Responsibility
Netflix’s hands-off management style is another defining element of its culture. With no strict expense or holiday policies, employees are given the freedom to use their judgment. As a result, those wanting to join the streaming giant need to be unusually responsible, self-motivated, and self-disciplined.
- Exercise individual judgment
- Remain self-aware and self-motivated
- Show initiative without waiting for instructions
Netflix’s unique approach to employee management, epitomized by the keeper test, sets a high bar for performance and accountability. While demanding, it ensures that the company remains filled with top-tier talent who drive innovation and maintain its position as a leader in the streaming industry.