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Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The keeper test at Netflix encourages managers to assess whether they would fight to keep an employee; if not, we suggest offering a severance package to ensure a high-performance culture.

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Reed Hastings, Chairman and Co-Founder of Netflix

@ Stanford Graduate School of Business

Reed Hastings, Chairman and Co-Founder of Netflix

02/24/24

Related Takeaways

Reed Hastings

06/10/25

@ The Knowledge Project Podcast

I treat severance packages as a management tool to ensure we keep the right talent at Netflix.

Ben Horowitz

04/21/17

@ Y Combinator

When managing a company, it's essential to create incentives for employees to stay, especially if they face the risk of being fired.

Reed Hastings

06/10/25

@ The Knowledge Project Podcast

I use severance packages as a management tool to give managers permission to let go of employees, making it easier for everyone involved.

Rich Barton

04/18/25

@ Tim Ferriss

It's crucial to be willing to fire underperforming team members quickly, as holding onto them too long can hinder the team's overall performance.

Reed Hastings

06/10/25

@ The Knowledge Project Podcast

We don't do performance improvement plans because they create a false sense of legal protection; instead, we prefer to offer generous severance packages.

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Our primary responsibility at Netflix is to entertain our customers, and we take that very seriously, focusing on providing great entertainment rather than reflecting our values in every show.

Y Combinator Cast

04/21/22

@ Y Combinator

Companies have engineered systems over many years to retain employees, and signing a contract means entering a retention flow designed to keep you from leaving.

Kathryn Minshew

05/07/16

@ Y Combinator

Culture is about making tough choices, like deciding not to hire a highly skilled candidate if they don't fit well with the team.

Reed Hastings

06/10/25

@ The Knowledge Project Podcast

Inclusion at Netflix means ensuring everyone can contribute at their highest ability, which is in our commercial interest.