Netflix: Reinventing Talent Management
Netflix, a global provider of streaming TV series and movies, started its voyage in 1998 as an US-based DVD-by-mail service. In 2007, it ventured into the streaming business. In 2010, it expanded this business in Canada and now, it has presence in more than 190 countries. House of Cards was the first original series advertised by the company widely. Headquartered in Los Gatos, California, Netflix reported more than 81 million subscribers across the world, with over 46 million only in the US, as of April, 2016. Apart from its outstanding streaming service, the company has gained recognition for its unique approach to talent management. This is one of its success factors because of which, its stock gained more than three-fold jump in 2013 alone. Not to be missed, the company has already been honored with Emmy Awards, Golden Globe Awards, and Peabody Awards in 2013.
Now, the question is how Netflix’s unique talent management strategy has …show more content…
If your employees are fully formed adults who put the company first, an annual bonus won’t make them work harder or smarter. We also believed in market-based pay and would tell employees that it was smart to interview with competitors when they had the chance, in order to get a good sense of the market rate for their talent.”
Unlike many other companies, equity compensation is different at Netflix. There is no scope to include stock options, along with a competitive salary. Instead, employees are asked to decide the amount of their salary they want in the form of equity. So, she said, “If employees wanted stock options, we reduced their salaries accordingly. We continually told managers that building a great team was their most important task. Great teams accomplish great work and recruiting the right team was the top
Netflix, a global provider of streaming TV series and movies, started its voyage in 1998 as an US-based DVD-by-mail service. In 2007, it ventured into the streaming business. In 2010, it expanded this business in Canada and now, it has presence in more than 190 countries. House of Cards was the first original series advertised by the company widely. Headquartered in Los Gatos, California, Netflix reported more than 81 million subscribers across the world, with over 46 million only in the US, as of April, 2016. Apart from its outstanding streaming service, the company has gained recognition for its unique approach to talent management. This is one of its success factors because of which, its stock gained more than three-fold jump in 2013 alone. Not to be missed, the company has already been honored with Emmy Awards, Golden Globe Awards, and Peabody Awards in 2013.
Now, the question is how Netflix’s unique talent management strategy has …show more content…
If your employees are fully formed adults who put the company first, an annual bonus won’t make them work harder or smarter. We also believed in market-based pay and would tell employees that it was smart to interview with competitors when they had the chance, in order to get a good sense of the market rate for their talent.”
Unlike many other companies, equity compensation is different at Netflix. There is no scope to include stock options, along with a competitive salary. Instead, employees are asked to decide the amount of their salary they want in the form of equity. So, she said, “If employees wanted stock options, we reduced their salaries accordingly. We continually told managers that building a great team was their most important task. Great teams accomplish great work and recruiting the right team was the top