Netflix tells managers to fire employees if they fail unusual test

The streaming giant just made some significant updates to its work culture.

Jun 26, 2024 - 07:30

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Netflix tells managers to fire employees if they fail unusual test

Work culture is constantly evolving in the corporate world, with many companies rolling out updates to their policies that they believe will bring out the best in their employees.

While some policy changes are welcomed with open arms in the workplace, others can spark controversy such as policies that lay out ground rules surrounding remote work or hiring and firing practices.

Netflix (NFLX) is the latest major company to make some significant changes to its workplace culture, and one of them involves determining an employee’s future at the company based on a strict test.

In a new memo to employees, Netflix first claims that it views its company as a “dream team,” veering away from identifying itself as a family.

“We model ourselves on being a professional sports team, not a family,” said Netflix in the memo. “A family is about unconditional love. A dream team is about pushing yourself to be the best possible teammate, caring intensely about your team, and knowing that you may not be on the team forever.

Netflix claims that in an effort to strengthen its “dream team,” it encourages managers to use a “keeper test” to determine whether or not to fire an employee.

“Our managers use a ‘keeper test’ for each of their people: if a team member was leaving for a similar role at another company, would the manager try to keep them?” reads the memo. “Those who do not pass the keeper test (i.e. their manager would not fight to keep them) are given a generous severance package so we can find someone even better for that position—making an even better dream team.”

Netflix founder Reed Hastings speaks during the New York Times DealBook Summit in the *Appel Room at the Jazz At Lincoln Center* on November 30, 2022 in New York City. Netflix says that the name "keeper test" came from Hastings.
Michael M. Santiago/Getty Images

The streaming giant claims that managers often communicate with their team members so “surprises are rare” when it comes to making these decisions. Netflix also encourages employees to do the same when determining whether or not to stay at the company.

“We also encourage employees to check in with their manager at any time by asking, ‘How hard would you work to change my mind if I were thinking of leaving?’” reads the memo.

Netflix also said in the memo that “loyalty is great as a stabilizer” in its workplace culture, and it has no problem parting ways with employees who only perform “adequately” at the company.

“Employees with a strong track record at Netflix get leeway if their performance takes a temporary dip, or if they are in a new role,” reads the memo. “Similarly, we want employees to stick with Netflix through any short term dips the company may have. That said, we don’t believe in long-term allegiance to a stagnant company, or to an only-adequately-performing employee.”

Netflix is following a growing workplace trend

The move from Netflix comes after Waze Co-Founder Uri Levine revealed that he encourages managers at the companies he advises to give new employees a 30-day test to determine their future at the company. He said that if a new employee underperforms at the company during their first 30 days on the job, he encourages leaders to fire them.

More Labor:

It appears that the majority of managers in workplaces across the country have high expectations for their employees. In a 2022 survey from Resume Builder, 63% of managers said that employees should exceed expectations while on the job, while only 35% said they are okay with employees only meeting expectations.

The survey also found that 75% of managers are okay with firing an employee that isn’t exceeding expectations, while only 25% said that it is not justified to fire an employee that only does the bare minimum because they are technically still doing their job.

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