STAFFING AT NETFLIX

By: Shrivenkatesh, Dhanush, Dawood, Basir, Ayman

Netflix has gained prominence not only for its innovative content but also for its unique staffing
practices. The company's recruitment process is designed to give applicants a clear
understanding of their future at Netflix, reflecting the company's core values and culture. Netflix
prefers hiring experienced candidates with at least three years of relevant work experience in
their field. The interview process is known to be challenging and rigorous, involving several
rounds of interviews, assessments, and personal evaluations. Additionally, Netflix's onboarding
process is thorough, aiming to ensure a smooth transition and help new employees adapt to the
company's culture. This report will provide an in-depth analysis of Netflix's staffing process,
including recruitment, selection, and onboarding, shedding light on the company's unique
approach to talent acquisition and management. By examining these key aspects of talent
acquisition and management, the report will offer insights into Netflix's unique approach to
building a high-performing and innovative team.

From mobileappdaily.com - “How does Netflix make its money?”

BACKGROUND

Netflix, founded in 1997, has grown to become a global video streaming service with a presence
in more than 190 countries, consuming a significant portion of the world's internet bandwidth. [1]
The company's success can be attributed to its innovative content and user-friendly platform. As
a leading technology company, Netflix has adopted advanced technologies to enhance the user
experience and stay ahead of the competition.
The staffing process is a crucial aspect of management theory, as it involves the recruitment,
selection, and retention of employees to ensure that an organisation operates efficiently and
effectively. Staffing theory explores the effects of behaviour settings being understaffed or
overstaffed, and it helps organisations find the optimal balance between having enough
employees to perform tasks and not having too many employees, which can lead to wasted
resources and decreased productivity. The human resources department typically manages the
staffing process, which involves several steps, such as recruitment, selection, training, and
development. Different management theories, such as Fayol's theory, Taylor's theory, and
McGregor's theory, guide how to manage employees effectively and create a positive work
environment. [2] By understanding and implementing these theories, organisations can improve
their staffing processes and achieve better business outcomes.

Netflix's staffing process is designed to attract and retain top talent, reflecting the company's
commitment to excellence and innovation. Prescreening with a recruiter, a phone call interview,
an on-site interview, coding round 1, coding round 2, and an HR interview are all part of the
tough recruitment process. [1] Candidates must have a solid background in computer science,
information technology, or a related discipline, as well as exceptional problem-solving and
analytical skills. [1]

1.1: PROJECT MANAGEMENT:

Netflix's team structure is designed to ensure efficient project management. The company
organises its teams based on the project's requirements, and each team has specific
responsibilities. For instance, the human resources department is in charge of staffing, while the
platform is developed and maintained by the technical team. The recruitment team is
responsible for identifying and attracting top talent, while the hiring managers are responsible
for selecting the best candidates for the job. The company's culture of recruitment emphasises
the importance of building a close relationship between recruiters and hiring managers, enabling
them to work together to find the best candidates for the job.

Netflix allocates budgets for staffing based on various factors, such as recruitment costs,
employee benefits, and training expenses. [3] Netflix's approach to budget allocation is flexible,
allowing the company to delegate decision-making responsibilities to different teams. [9] By
investing in its employees and providing them with the necessary resources (as per Fayol’s
theory on remuneration), Netflix ensures that its teams are well-equipped to handle their
responsibilities and deliver high-quality results.

1.2: MARKETING MANAGEMENT:

Talent as a Product: Netflix positions its talent as a product by emphasising the importance of a
strong team and the unique skills of its employees. The company's "people over process"
philosophy drives its talent acquisition strategy, focusing on finding and hiring the best talent to
create and deliver high-quality content.

Place: Netflix strategically places its talent within the organisation by fostering a diverse and
dynamic workforce. The company's commitment to diversity and inclusion is obvious in its
attempts to better reflect its membership in its workers, suppliers, and on-screen talent -
ensuring that everyone has a feeling of belonging at Netflix.

Price: Netflix's compensation and incentive structures attract and retain top talent. The company
offers generous severance packages rather than holding on to workers whose skills no longer fit
the company's needs, allowing employees to leave with dignity and without financial stress[4].
Additionally, Netflix's creator-driven licensing deals, which are unique in product placement, do
not cost anything and provide brands with the added boost of appearing in popular shows like
"Stranger Things".[8]

Promotion: Netflix promotes a culture of innovation and creativity by embracing unconventional

advertising strategies. For example, the company has considered sponsoring live sports events,
such as the "Netflix Cup" global golf match, offering brands the opportunity to showcase their
branding during the live-streamed event and ad placements on its ad-supported tier.[5] This
approach demonstrates Netflix's commitment to attracting skilled professionals by creating a
buzz around its brand and content.

1.3: LEGAL MANAGEMENT:

Employment Laws: Netflix must comply with various employment laws and regulations in
different locations globally. For example, in the United States, the company must adhere to
federal and state labour laws, such as the Fair Labor Standards Act (FLSA), which sets
minimum wage and overtime pay requirements for employees. In Europe, Netflix must comply
with the General Data Protection Regulation (GDPR), which regulates the processing of
personal data of individuals in the European Union. [6]

Diversity and Inclusion: Netflix has adopted several efforts to encourage workplace diversity and
inclusion. For example, the company has set a goal to achieve gender parity in its workforce by
2023 and has committed to investing $100 million in black-owned banks and other financial
institutions. Additionally, Netflix has established a Diversity, Equity, and Inclusion (DEI) team to
oversee its efforts in this area and has implemented unconscious bias training for its employees.
[7]

Contractual Agreements: Netflix adheres to the legal aspects of contracts and agreements in
the staffing process, ensuring compliance with labour laws. For example, the company requires
written agreements for various aspects of its operations, such as licensing agreements with
content creators and distribution agreements with third-party providers. Additionally, Netflix has
implemented a policy of offering generous severance packages to employees whose skills no
longer fit the company's needs, ensuring compliance with labour laws related to termination.

CONCLUSION AND RECOMMENDATIONS:

In conclusion, Netflix's innovative approach to staffing, marked by a combination of flexibility,
transparency, and a rigorous recruitment process, stands as a model for other companies to
emulate. By carefully selecting and nurturing top-tier talent, Netflix has successfully integrated a
culture that resonates both internally and externally. The company's commitment to inclusivity,
communication, and selflessness ensures a cohesive and excellence-driven workforce. As
businesses seek strategies to enhance their teams and work environments, Netflix's emphasis
on aligning recruitment with core values serves as a beacon for fostering a thriving
organisational culture. Embracing these principles can undoubtedly contribute to the creation of
a high-performing and harmonious workplace for companies looking to excel in today's dynamic
business landscape.
Citations:
1. Netflix Recruitment Process. (2022, September 22). GeeksforGeeks.
https://www.geeksforgeeks.org/netflix-recruitment-process/
2. Different Management Theories | Organizational Behavior and Human Relations. (n.d.).
https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/different-manage
ment-theories/
3. Broadcast, A. F. (n.d.). How Netflix uses data to help set budgets, make cancellation
decisions. Screen.
https://www.screendaily.com/news/how-netflix-uses-data-to-help-set-budgets-make-canc
ellation-decisions/5137562.article
4. McCord, P. (2023, August 14). How Netflix Reinvented HR. Harvard Business Review.
https://hbr.org/2014/01/how-netflix-reinvented-hr
5. Joseph, S., & Scanlon, K. (2023, November 10). From product placement to the Netflix
Cup: marketers weigh up the unconventional twist in its ad strategy. Digiday.
https://digiday.com/media/from-product-placement-to-the-netflix-cup-marketers-weigh-up
-the-unconventional-twist-in-its-ad-strategy/
6. Netflix Inc.'s Political, Legal, Regulatory Forces - 919 Words | Report Example
(ivypanda.com)
7. Netflix Jobs
8. Product Placement 2.0 Is One Solution To Netflix’s Problem | The Drum
9. McCord, P. (2023, August 14). How Netflix Reinvented HR. Harvard Business Review.
https://hbr.org/2014/01/how-netflix-reinvented-hr