Treating Humans Like People
Netflix is an American multinational entertainment company founded in 1997 by Reed Hastings and Marc Randolph. It provides streaming media and video and DVD by mail. In 2013, Netflix added film and television production, as well as online distribution
WHAT IS THIS HR INNOVATION ABOUT?
Their shaped their company culture with 5 main pillars that put the individual at the center: hire, rewards and tolerant only fully formed adults, tell the truth about performance, leaders create the culture and think like innovators and business people first. As a consequence of this philosophy Netflix pioneered the concept of "unlimited" vacation time, and they abolished performance reviews.
Some critics say that their approach is compelling because it derives from common
WHY WAS THIS INNOVATION IMPLEMENTED?
These innovations were consequences of the company culture that aimed at simplification, people empowerment and reduction of administrative burdens ‘…that most companies fall into a trap of having 97% of their employees doing great work and not needing HR to hold their hands, while 3% of employees absorb HR's time, money, and energy.’
WHAT ARE ITS MAIN BENEFITS?
The benefit for the employer is a reduction of administrative/paper work. The employee feels empowered as individual. Overall a relationship based on mutual trust and respect of few basic rules ‘Act in Netflix’s best interests’. Also it helps creating a specific culture and increase the sense of ownership.
USA, early 2000
Sources:
https://www.fastcompany.com/3027124/lessons-learned/netflixs-major-hr-innovation-treating-humans-like-peoplehttps://hbr.org/2014/01/how-netflix-reinvented-hr USA,