Ever since Netflix’s awesome vacation policy was revealed to the public (basically, there is no policy, it’s take the time you think you need), the company’s work policies have been of interest to people. A new 128-page presentation called “Reference Guide on our Freedom & Responsibility Culture” was recently sent around the company, and then put on SlideShare, where the blog Hacking Netflix found it.
The presentation, which you can see for yourself below, is as interesting as any 128-page document can be. If you read it over, about half-way through, you’ll probably start wishing you worked for Netflix. This was meant to be an internal document for employees to read, but it’s also one hell of a recruitment pitch.
Early on, a lot of it deals with workplace efficiency, and not being afraid to let someone go if they’re not doing their job. The idea is that if someone just wants to do mediocre works, that’s fine, they’ll get a nice severance package. It extends this into an emphasis on effectiveness over effort — the company doesn’t want to necessarily reward people who stay late versus those who don’t, but get the same amount of work done. It then turns to some internal policies including management best practices. And then to retention practices — making sure the company pays the top people a high enough salary that they’ll never want to leave.
There’s a big emphasis within the company on salary, rather than stock options and bonuses. The thought is that you should give the employees as much money as possible up front and let them decide what to do with it.
This is all pretty interesting stuff for a fairly large, publicly-traded company. The emphasis is obviously not to act like other big companies do. Given Netflix’s recent successes, it would seem that the strategy is working. And yes, there is stuff in there about the vacation policy.
Netflix are a lot more impressive to me after reading this doc [ manifesto ? ]
They as a company have moved away from what has been accepted as HR standards for a long time.
Great policies. But how practical are they? Do Netflixers really enjoy such benefits? Then why the company should be the world’s favorite employer, right? Does Netflix rank anywhere in the rating?
Did any of you read the second “slide”??
“Freedom & Responsibility applies to our Salaried Employees”…
The hourly employees still get shafted with policies because they still stand to make the most money with overtime, accrued Holiday time,etc.
‘Core Values” look great in a presentation (they even mention it when referring to Enron) BUT it’s still a fact that retail management of any kind is short term & will burn you out. Plus, the way they evaluate performance is kind of scary. If I’m on a “Pro” team, I wanna get paid like a pro. I’m not concerned with leniency towards my vacation & business trips. I’m concerned with when the work ends in any given day & what my freakin paycheck looks like, BECAUSE, I don’t care who you work for or what you do…
IT’S STILL A FREAKIN JOB!!! …and who really wants to work for a living?
Wow, what sad bitterness.
A lot of people LOVE what they do and can’t wait to get started in the morning. Yes, they really WANT to work for a living.
I’m one of them.
But for me, it’s not work – at least not very often. It’s just simply fun.
TC has reached the level of Youtube commentry.
Really?? I’m bitter & reduced to that of a “Youtube Commenter”?? Hmmm… Maybe a little dose of reality is too much for you?
This some funny shit…
When you grow up and realize that there’s more to a career than how much you get paid, come back.
Wow… I’m not “grown up” because I disagree with the management mentality.
I wonder how many people heard this crap when Tweeter didn’t give them their last paycheck before the doors closed.
I’m all grown up pal. Maybe you need to take a look outside your cubicle.
I don’t think you are what netflix would call their ideal candidate, so don’t worry about it.
I love the work I do, and most days love my job. When it comes time to change jobs the company culture is worth more than the pay, because there is a direct correlation between the company culture and my happiness.
Netflix is working outside the defined barriers of a corporation and I am excited. I sent the story and slide deck to my regional and corporate presidents.
For me the most valuable part is the recruiting the best. I have worked at many, many places where they recruited whoever walked through the door and because they were so process driven, gave little meaningful recognition to the superstars that they did have, and they lost them all. I want to work somewhere where I have to strive to be better just to stay. Think about the opportunities to learn and the enjoyment from being the guy everyone has to explain things to, as opposed to the one doing all the explaining. I have worked hard to know what I know, there are a lot of people who know a lot more than I do, and I want to work there.
Yea…I know, I just love messin with the people who drink that lovely red koolaid.
BUT, did you see this crazy stuff from Mr. Holton:
“because there is a direct correlation between the company culture and my happiness.”
I mean, who wouldn’t want this “team leader” to work for them. No wonder why they made films like Office Space.
You have to realize that, this being TechCrunch, it’s likely that those responding to your comment who “love their jobs” are also underpaid entrepreneurs who have to convince themselves that it’s okay. Of course the reality is that you usually have to balance your enjoyment with your pay, and only in rare cases can you get the best of both worlds.
I can totally understand your pov and I also agree. My only qualm is that they wouldn’t be entrepreneurs if they were so happy working for the ass-kissing hierarchy of the corporate world with all their cute, non-realistic philosophies which ultimately equate to them making more money off the backs of the motivated uninformed & ,possibly, the uneducated.
Probably worth pointing out that this policy only applies to their top-tier employees (about 15% (from 300/2000)). These are also the only employees that Netflix has decided to pay salary to, instead of an hourly wage. Not very impressed.
i agree. they are successful. and their policy allows their employees to be happy. So whats the problem?
My simple two cents…. i have 3 friends who work at netflix, what i wouldn’t do to have their job…… one thing that is important their is that you actually get your work done, and if not you won’t have a job. no one there is in fear of losing their job because they get everything done. If they are fired they have been given a chance to redeem themselves, but only one chance. After that they are let go and replaced.
Good manual. Lots of good points that can be used by other companies to adapt and follow.
Skimmed through the first part of the document..Already it looks quite refreshing from those ‘typical’ HR presentations!
Their upfront point about every company having lofty value statements is very important.
Really good document!
Thanks
Amit
I am jealous and will be making Netflix one of the companies I regularly check for job openings.
“Brilliant Jerks: For us, the cost of teamwork is too high.”
If only all companies saw things that way, imagine the difference in productivity.
yeah, i liked that slide too.
You’re fired! (come on you must have seen that coming)
there was a good article in a dead tree paper recently (chicago trib) on life and work inside a distro center — hourly, still sounded hard but humane.
Y, sums it up nicely. Netflix did an awesome job with the presentation. I wonder how closely the presentation aligns with employee opinion?
This is a great document,I wish I could download it! I am writing a value guide for our small company ( binfire.com ) and can use this! It seems they have created a wonderful culture at Netflix….
Steps for d/l’ing file:
1. Sign up for free slideshare account.
2. Click on “join conversation on slideshare” button on slide show player in the Tech Crunch article.
3. Above said player on the conversation page there is a button labeled “get it” – This will email you a link to d/l the file.
Side Note: I don’t think it opens accurately with Open Office – Use MS Powerpoint
Your Welcome:)
Thank you. I did downloaded!!!
Yes.. I’ve seen many corporate code of ethics and company culture presentations and docs working in the Telecom industry for fortune 100 companies.
This one beats them all. Which is possibly why I no longer work in that industry.
very cool ! building good company culture is so important and yet one of the hardest things to do. Will be thinking about many of the points in this presentation and how they relate to our company.
See also: 20 Countries – Internet Usage statistics http://bit.ly/2nNMEG
“Big salary is the most efficient form of comp,
Most motivating for any given expense level:
No bonuses – just include in salary
No free stock options – just big salary”
well, absolutely when you’re riding the horse, but what happens if you’re not on the horse ?
I’m not sure I understand your allegory here.
These kind of value statements sometimes are overkill. Once you join a company, they throw 300 page value statements telling you how to eat, when to eat, when to talk, when to laugh, what is “value,” “integrity,’ “honesty” is is all tragedy. What does it mean someone to act “wisely.” They start teaching you like you are a 2 year old. Don’t tell me what “value, integrity, honesty and clarity” is. These things should say: 1) be honest 2). respect each other always 3) do a good job and period. Don’t go dictating when i should wash my hair and how many suger i need to put in my coffee and making me re-learn the word “integrity.” It is dictatorship basically
Watch out! The TC loyalists might call you a bitter “youtube” commenter for speaking your mind. Ya know, cause there are lots of people out there who love to have someone hold their hand and pump sunshine up their nose.
It doesn’t matter to me. I had experience with this insane corporate responsibility that tells how to live a perfect life with perfect attitude. The values, clarity, vision, excellence, goodness, godliness mentality of some of these companies that tries to preach frankly drove me crazy. I’m not antisocial though.
I understand their concerns, but these things can be way too much to the point of defining a person’s behavior. It is a job. If company is trying to dictate your attitude, the person should leave. These things should never be above 50 page. People don’t read these and much less pay attention to it. If these things are too much detailed, people will rebel against it. Companies that write things like this has already lost control of their companies. Two much gap between the “executive” team and the employees. People should keep things short and get to the point and don’t inject any “excellence, vision, morality, clarity” elements into “company visions.” It is a pure job not a morality lecture. My paraphrase of this 120 page doc is: “Work hard and don’t do anything stupid.” Don’t need 120 page for this.
good point
add this: “respect people around you” so the team will function. indeed too many pages for what is so simple. they said: avoid chaos or something…but they didn’t 
the document is still complex.
I may have come across hard. Here is a Nordstrom employee guideline for comparison: http://en.wikip.../wiki/Nordstrom
“Welcome to Nordstrom
We’re glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them.
Nordstrom Rules: Rule #1: Use good judgment in all situations. There will be no additional rules.
Please feel free to ask your department manager, store manager, or division general manager any question at any time.”
I like this
Nope…you didn’t come across hard at all. I can completely agree that when companies try to instill this Utopian type of mentality then that’s when it’s all going to crumble.
Yeah that’s a good addition to the discussion.
But don’t you think that there still is a “work culture” even at Nordstrom and that leting things go by themselves, at the end things can go wrong ?
I mean with such a rule, human nature takes on and people start fighting each others. Especially if they reward sells like I imagine (more sells, more money -> don’t help your colleagues).
Never go to Nordstrom though , it’s too expensive for me, so I might be wrong.
I read this a little differently. I read this as this is not what they want to mold you to, this is what they are looking for. If you don’t fit this mold then they are not looking for you and you would not like it there. If you fit in that mold then they will pay you good money to work there. As in everything in life, some people thrive in an environment like this and others don’t. One size never fits all.
I did a temp stint there, sorting returned dvd’s at 3 in the morning for some pocket money. Good job if you enjoy intimate observations of brain mushification. The salaried folk seemed nice enough and were serious about their work. Hourly folk included a nice spread of characters who I’m happy to have met. The performance mania mentioned in the slide indeed was manifested by supervisors regularly cracking verbal whips to encourage hourlies to increase their “productivity”. I enjoyed meeting some of the higher ups, tho very few Netflixers were my favorite flavor of human, but then I”m not completely human anyway.
I think companies such as Netflix, Apple, Google, 37signals, etc. are fast becoming the new model.
The new model as in …
Google: We dont care about your privacy so why should you?
Apple”: We hate MSFT’s monopoly but its okay to have our own (iTunes)
Netflix: Please believe we are not going the way of Betamax…please stay.
+1
really a wonderful value statement. i think it is achievable for any public limited company with stock market presence subject to necessary modifications in certain areas ( nature of business is a critical aspect).
Netflix team is trying to teach rest of the world ‘how HR practices can be transformed to add value to company’…great attempt
HR policing, HR fashion parades etc are of no use and we need better HR practices in India too.
Seems like being able to function like this as a company really depends on doing the hiring process very well (i.e, having the luxury of being able to be patient and picky, which implies the ability to pay top salaries). If you put together teams of smart, motivated, well-behaved adults, then there’s very little need for lots of rules regarding vacation, etc.
This.
This way of thinking about employers is totally the new way of running a business. There is so much benefits of giving your workers freedom with responsibility. It doesn’t seem like a great place to work because you can take vacation whenever you want to but because it seems like they believe you have the best interests and really want to do the best for the company. They believe in you.
Nice to hear a company talk about itself, what about the employees’ take ?
http://www.glas...iews-E11891.htm
Great idea Christian: It’s interesting to see a company rating (by employees) averaging 3.8–not bad, but definately not the “5.0 feeling” I get from reading the presentation.
Thanks for linking to this. I thought this was an interesting counter-point to the presentation. It makes the corporate culture sound a little hostile in some instances. Also, it sounds like that unlimited vacation deal doesn’t amount to much given the performance pressure.
You know, the first thing I thought when I read there was no vacation policy, was that I bet nobody takes vacation, and if they do, they’re gone. Seeing the comments on Glassdoor seem to confirm that. Not everything is what it appears.
It’s a refreshing read, but the ideas aren’t applicable to any company. I find every company wants to believe their employees are part of a team that devotes itself to high performance, which requires a level of passion to be sustainable for a long time. Netflix is likely a company people can feel passionate about working for, especially given the interesting nature of the entire process (from logistics to recommendations), and the relevance to your average person.
However, if I’m starting an enterprise software company, my experience tells me I’ll have a hard time finding high performers for every salaried role.
“This was meant to be an internal document for employees to read, but it’s also one hell of a recruitment pitch.”
This pdf is actually embedded on their jobs page at http://www.netflix.com/Jobs and yes it is a good recruitement pitch.
Are we sure they didn’t JUST post this? Seems like compensation for a mistake
I wonder what’s it like for working for TechCrunch and its policies of humanity to its employees?
A place where shaking hands is frowned upon…reflects what value exactly?
Netflix’s vacation policy is not as good as you make it sound… I get 38 business days off a year
I bet no Netflix employee can take off for almost 2 months without consequences 
One of the few things I love about Europe 
Basar, what’s the name of the European equivalent of Netflix? What’s the dominant search engine there?
That’s what I thought. Enjoy your vacation while we power the world.
What a loser you are
I couldn’t care less about who powers the world. At the end, as a consumer, I still get whatever I want.
Besides, as Europeans, we dont’ care about these stuff. We value quality of life much more than just bragging. At least we are not stuck in a country that’s all alone by itself, I can travel to 30+ countries within 3 hours of flight time. I have universal health care, so I don’t have to worry about anything when I am unemployed. I can actually spend time with my family and friends 38 days out of a year, unlike you
Jealousy is a bitch, ain’t it?
You do realize that Google, Apple, Microsoft, etc. *all* have a presence in the EU, and must adhere to the quality-of-life policies in place there, correct? Since you clearly have a firm grasp of global business operations, then what is your point other than failing at trolling?
Note: my reply is directed at “Jimbo” not Basar. Not sure why it threaded the way it did.
Having direct interaction with Netflix salaried employees and alum, the corporate culture over there isn’t as pretty as the above slide deck… It isn’t collegial, collaborative etc. I’m just saying if that is what you prize, examine what supports it…
“there is also no policy on clothing at NetFlix, but no one has come to work naked recently…”
brilliant.
yes, great line.
Does anyone with any experience with California employment law know how they manage their “unlimited vacation time” policy? Or do they just accept that the exposure it creates for them (disgruntled employee leaving and demanding boatloads of back pay) is just a consequence of hiring bad people, which they’re trying to avoid anyways?
There is no back pay when you leave because you get no vacation days. You just get your work done.
Ding ding ding! We have a winning laser beam sharp observation that cuts through the mission statement BS.
Slide 12: “Things we value in our colleagues: You accomplish amazing amounts of important work.”
Netflixers, please quantify ‘Amazing’.
Another BS embroidered border on another high pressure workplace. Oh and we found a clever way to save money on employee vacation expenses!
Crazy concept. Get paid for the work you do. Why do people feel like they are entitled to compensation for not working?
I pose this question. If the role were reversed, would you pay your grocery store for produce they don’t give you?
For those of you with vacation days: How often do you find yourself trying to figure out ways to use your days up? Halting actual productive work because you HAVE to.
And people wonder why our economy is in the dumps. We’ve bred a culture that forces limits on productivity.
This vacation policy is interesting, you hire “A players” and I bet they love their work enough to keep their days off to a minimum. Sure, some will abuse it, but they likely don’t want to be there anyway.
I like the selflessness part. Do what’s best for the company, not for yourself. Are you telling me that if the roles are reversed the company will do what’s best for me and not for itself? That it won’t lay me off at the drop of a hat if it can? Please. Don’t tell me to be selfless without telling me why. My being selfless makes the executives rich. What does it get me?
Not sure about NetFlix, but the “no vacation policy, take as much time as you want” thing isn’t necessarily done for the benefit of the employees. IBM does this too, and it turns out that people tend to take less time off when they’re not given “sanctioned” vacation days (protestant work ethic or something). Plus, the company doesn’t have all those annoying accrued vacation days that become liabilities on their balance sheet and fuck up their numbers.
I’m sure that’s true Mike, but the policy still sounds cool
What, it sill sounds cool? Do you write stories on what sounds cool? Netflix could have a pants optional Friday, that sounds cool. In reality, every or all but one creepy guy in payables, would wear pants. The no vacation policy is not there to benefit the employee. HR views vacation days an earned benefit, something which has to be paid. By saying no vacation days does not mean that when you want to take the three week trip to Australia you will be allowed to do it. In reality the no vacation policy means Netflix comes first. Netflix does not value vacation time enough to provide it as a benefit. Working vacations, yup those are the norm. You can never mark vacation on your schedule and schedule around it, vacations don’t exist at Netflix. Think about it MG does that sound cool.
What if I want to schedule 3 working vacations? I get my work done, and travel. This does require some creative problem solving, but that is why I was hired for the position in the 1st place.
Timothy Ferriss’ book the ‘4 hour workweek’ covered the concept in a fair amount of detail.
The real issue I believe is one of expectations – are they reasonable? Is the expectation that you will do the work of 3 people for the price of 1 or even 2? Then it may be a bad deal, unless you want to work 2 years, get paid for 4 and then take some time off and enjoy.
Many jobs burn people out and force them to switch careers to allow them to recuperate. Is that the Netflix philosophy?
I don’t know if this was mentioned in the comments already (don’t feel like reading through every one), but the presentation is located under Netflix’s jobs section.
http://www.netflix.com/Jobs
Wow, I missed @Sridhar Adusumilli’s comment. Boy do I feel stupid.
As a note, this was uploaded by Reed Hastings himself. And it is embedded on their jobs page: http://www.netflix.com/Jobs
It is an inspiring presentation and makes you think hard about company culture.
ahh, nice,as I said, a great recruitment tool
Netflix has a bright future as they combine their unique employee policies with their strategy to switch to streaming HD digital content. Step aside Hulu and Youtube!
this presentation is posted on the netflix website…no hacking required.
Ricardo Semler has been doing and saying this for years on an even larger scale.
MG, the Link to download the presentation doesn’t work….
And yet, despite all that, all they do is rent DVDs, and nobody would miss them if they went belly up tomorrow.
At the top of a person’s hierarchy of needs is self-actualization, or the need to be doing something important in the world.
If you work for a company that rents dvds you need ostentatious presentations like this one to compensate.
There are very few good companies with real values out there. I recently worked for James River Petroleum (a fuel supplier) in Ashland VA. The owner of the company had a habit of reading all employee emails and listened to employee phone calls even when private. We were forced to work in a mold infested building and employees that dared to speak up were terminated on the spot. Worse turn over rate of any company I have ever worked for. Forty one (41) staff members were terminated or resigned in the 2 years I was there. Bring him enough dirt on other employees and you might get promoted. He was sued three times for sexual harassment and had to settle out of court. He recently fired the IT manager and held the man’s severance for 2 months. He black mailed the poor guy to do work without pay before releasing his pay. If you ask me, I would take Netflix every single time over what else is out there.
Wow, this sounds like the polar opposite of Amazon’s culture – no wonder Netflix’s streaming service is so much better than Amazon’s.
Keep in mind, netflix is basically a little bitty company. This stuff all works fine if you’ve got a couple hundred creative/management/software types running around and a 1500 or so minions packing and unpacking DVDs. It doesn’t work so great if you actually become, say, a medium sized company. All that crap they have in there about “how to scale a company” is pure hypothesis for netflix.
It’s all bluff. They’re begging for Amazon to buy them. Imitation of Zappos at its best.
Having read this, I wouldn’t want to work at Netflix though I’m a high-performer.
There’s some seemingly good stuff in this manifesto (e.g. the “brilliant jerk” line). These things don’t work out in reality however. For millions of years, evolution has optimized towards brilliant jerks. Netflix can’t change this. The only thing they do is that they only hire those brilliant jerks who are brilliant enough to hide their true nature sufficiently well.
There’s also a lot of stuff in the manifesto that looks good at first sight, but actually isn’t in reality. Not counting hours worked per day means that people will work longer. People will also take fewer days off if there isn’t any strict vacation policy. And they will expense less if they are required to put the company’s goals first in general (think of it: If you don’t manage to arrive as relaxed after an economy flight as you would after a business flight, you’re probably just an under-performer. Quit your job already!)
So what Netflix basically does is liberalizing the internal job market. Usually that leads to better performance but also a higher rate of burned-out people.
I bet that the average number of years employees stay at Netflix is lower than the according number for competing companies.
Also, they emphasize intrinsic motivation but actually count on the power of extrinsic motivation (”Pay top of market”, “what could person get elsewhere?”).
There are numerous studies indicating that extrinsic motivation replaces intrinsic motivation.
Further, salary is well-known to be a hygienic factor. It doesn’t make people happy, it makes people unhappy, no matter how high the salary is.
for fscktwitter: What evolution? What millions of years? Come on, we are not the result of evolution
And people were always rebels.
sorry, for Cail
“I wouldn’t want to work at Netflix though I’m a high-performer.”
Dude serious…
I dont see how this manifesto has directly impacted the improvemnt of the Netflix service. Sure they have video now, but the entire user experience is pretty much the same kludgey mess it was when it first started…
Secondly, giving people more cash to high performers is compelling than giving them more equity(ie, options). The latter is whats stokes the fire of productivity and high performance.
All this hoopla and Netflix is getting spanked by a little redbox in the supermarket. I like how the presentation says they hire fast and fire fast.
Most readers will have one of two reactions to this deck.
Love it, or hate it.
I find it interesting that the deck literally embodies the conservative message found by libertarians and objectivists. “Keep your money, do what you want with it. Value performance with little regard or energy spent on failure.”
On the liberal side of the coin I see commenters pining over the poor worker who isnt a star. “What about their lively hood when they can’t do the work?! The children!”
Not picking sides, but Netflix is doing something right. They have been rated 2009’s Best Place to Work, have some of the highest employee satisfaction scores, some of the highest salaries for comparable work and, let’s be honest, their service and customer service rock.
haloo sir i am from india i am looking for some work i am not highly qualified but i can work hard i learn things preety quick i can spend 7-8 hrs daily on the net even on sat and sunday i am very much intersted in to be a part of your company and give my best services to you reply me i am wating for it thanx
manvinder singh
The most difficult part of being a “creative worker” or “knowledge worker” is the *lack* of procedures and few, if any guidelines about how to carry out one’s job. I’m so glad to see Netflix spell everything out in terms of values and behaviors.
All the negative responses are simply proof that Netflix is causing people to rethink the relationships they have with their employers. The naysayers probably realize that they do not measure up to Netflix’s standards and feel inferior, or if they do measure up, they feel trapped in jobs that they do not enjoy.
Clicking through all 128 slides can take a while and the slide deck transcription below is hard to follow. I’ve transcribed and edited the text for better clarity at my blog, Creative Reaction. http://bit.ly/xbre Enjoy.
I think the vacation policy is rather unfair. I would state a clear set amount of days. If i decided to take a few months off my work would consider my position vacant