Tools

Explore

Videos Channels Figures

Atmrix

Tools

Explore

Videos Channels Figures

Atmrix

RH

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.

Video

Netflix Founder: The Hidden Rules Behind Success | Reed Hastings

@ The Knowledge Project Podcast

Netflix Founder: The Hidden Rules Behind Success | Reed Hastings

06/10/25

Related Takeaways

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.

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.

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.

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The annual performance review is often ineffective; continuous feedback throughout the year is more beneficial for employee development.

Nabeel S. Qureshi

05/11/25

@ Lenny's Podcast

The company intentionally avoids traditional titles and career ladders to prevent unproductive competition among employees.

Ben Horowitz

04/21/17

@ Y Combinator

Demoting an employee can be a better option than firing them, as it allows you to retain a hardworking individual while addressing performance issues without creating additional problems.

Qasar Younis

05/15/25

@ Uncapped with Jack Altman

Our customers often seek not just software but also guidance on how to plan for performance management and future advancements.

Daniel Priestley

05/27/25

@ Chris Williamson

When it comes to firing employees, it's essential to follow HR protocols, which can be frustrating. You may want to have honest conversations about performance, but legal constraints often prevent straightforward discussions.

Brian Chesky

06/02/24

@ The Social Radars Podcast

I never aimed for profitability; I aimed for efficiency. We kept our headcount flat and focused on creating a fun work environment, which allowed us to move quickly and effectively.