Netflix is widely discussed in HR and management circles for its distinctive culture that prioritises talent density, freedom, and responsibility over traditional HR structures that emphasize standardization and control. Unlike many corporate models that build large teams with average performers and use formal processes to manage work, Netflix would rather hire one “stunning” talent who can deliver the output of three or more adequate performers.
In practice, this means hiring top talent and being willing to let people go if they don’t consistently perform at a high level. Netflix leaders believe that even good performers can slow down great teams and that a smaller group of high performers will raise overall output and creativity. One practice tied to this is the “Keeper Test,” where managers regularly ask “If this person said they were leaving, would I fight to keep them?” If the answer is no, Netflix may offer a generous severance rather than extensive performance improvement plans.
Additionally, the company places huge emphasis on autonomy by trusting employees to manage their time, make decisions, and take ownership of outcomes. They are also encouraged to give and receive feedback frequently, not just through annual performance reviews but as a normal part of work.
In contrast, traditional corporate HR models emphasize stability, standardization, and risk control. These organizations typically rely on structured job levels, annual reviews, and policies designed to ensure consistency and fairness. While this provides predictability and job security, it can also slow decision-making and reduce accountability, especially in fast-changing environments.
Netflix openly acknowledges that this model is not suitable for everyone since high talent density requires autonomy, continuous evaluation, and comfort with uncertainty.
