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Netflix: Non-'A' Players Unworthy of Jobs

theodp writes "Describing How Netflix Reinvented HR for the Harvard Business Review, ex-Chief Talent Officer Patty McCord describes 'the most basic element of Netflix's talent philosophy: The best thing you can do for employees — a perk better than foosball or free sushi — is hire only "A" players to work alongside them.' Continuing her Scrooge-worthy tale, McCord adds that firing a once-valuable employee instead of finding another way for her to contribute yielded another aha! moment for Netflix: 'If we wanted only "A" players on our team, we had to be willing to let go of people whose skills no longer fit, no matter how valuable their contributions had once been. Out of fairness to such people — and, frankly, to help us overcome our discomfort with discharging them — we learned to offer rich severance packages.' It's a sometimes-praised, sometimes-criticized strategy that's straight out of Steve Jobs' early '80s playbook. But, even if you assume your execs are capable of identifying 'A' players, how do you find enough employees if 90% of the country's population is deemed unworthy of jobs? Well, Netflix CEO Reed Hastings' support of Mark Zuckerberg's FWD.us PAC suggests one possible answer — you get lobbyists to convince Congress you need to hire as many people as you want from outside the country. An article commenter points out that Netflix's 'Culture of Fear' has earned it a 3.2/5.0 rating on Glassdoor."

18 of 397 comments (clear)

  1. this is like by Anonymous Coward · · Score: 5, Insightful

    Netflix accepting only "A-Players" is exactly the corporate equivalent of some fat greasy obese anime-watching neckbeard putting up his dating profile and going SUPERMODELS ONLY PLEASE.

    1. Re:this is like by mariox19 · · Score: 5, Funny

      Perhaps we should start some kind of outreach program: "For only $600.00 a day—the price of dinner at an exclusive Manhattan restaurant—you too can bring hope to an exotic supermodel. Please, pick up the phone and make the call."

      --

      quiquid id est, timeo puellas et oscula dantes.

    2. Re:this is like by Dunbal · · Score: 5, Insightful

      you could hire a mediocre, good or brilliant employee and you'd end up with the same result.

      No. In a way I see their point, although I don't completely agree. Having worked here in the socialized medicine system of a third world latin country, it becomes immediately apparent that there are people with a wide range of abilities and skillsets. However over time those "A-players" with excellent skills become lazy and sloppy, because of the mediocre environment that surrounds them. It's very very easy to turn a good employee into a mediocre employee when you surround him with other mediocre people, excessive bureaucracy and silly rules and regulations that are arbitrarily enforced. It's virtually impossible, however, to turn a mediocre person into a talented, highly motivated individual (although it does happen sometimes). So I see their point.

      However Netflix's argument is based on the assumption that their hiring staff are the best possible judges of talent around and they never, ever make mistakes. Since everyone is human, then this simply cannot be true. Also people change over time, for many reasons. I work much more efficiently now in my late 40's than I did in my 20's, even though I work less actual hours I get more done. Likewise people who used to produce world class work can slack off, for any number of temporary or permanent reasons. So they get canned? Well then, this "system" is nothing but a quota system in disguise, and if you fail to meet your quota you're out of here. Not necessarily the best system, and certainly not anything new.

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      Seven puppies were harmed during the making of this post.
    3. Re:this is like by fahrbot-bot · · Score: 5, Insightful

      Oddly enough, many actually are caught in a dating quagmire. There are certain tiers in the modeling world, if you are above a certain level (too exotic for non-elites) but below the level where you are integrated with the elite culture, they kinda end up in a bit of a dateless limbo that only really ends if their career picks up or fails.

      If true, then I imagine things might be different for them if they (a) stopped caring about what other people think of who they choose to date and (b) opened their eyes, hearts and minds to a wider range of people to date. In reality, one never knows exactly who that perfect person is for you and it may be someone unexpected or otherwise unconsidered. (Unless, of course, you're just dating someone to enhance your own career/status.)

      --
      It must have been something you assimilated. . . .
    4. Re:this is like by Shoten · · Score: 5, Insightful

      Correlation with one data point is not causation, idiot.

      The alternative explanation is most Netflix employee work is so routine that anyone could do it - you could hire a mediocre, good or brilliant employee and you'd end up with the same result.

      They're not a research lab. Aside from the people who do their marketing and negotiate with the film labels, they're not doing anything that anyone else could do - indeed, the pirates are far better at delivering the films I want to watch. They can't even write decent HTML/JS/CSS, but again, it's "good enough", so who cares?

      Actually...Netflix does quite a lot of research. They are famous as being tireless in their quest to improve every aspect of their business...and while most of those changes are invisible to us there are still plenty that are quite apparent.

      Remember back many years ago,when the return envelopes started showing up with the window cut-outs so that the bar code of the DVD could be scanned from the outside? That effectively saved them an entire day on DVD turnaround by allowing them to validate which subscribers had returned DVDs before having to actually process said incoming DVDS.

      Netflix has actually worked so hard at optimizing their content delivery that they use AWS more effectively and efficiently than Amazon does. This is not even remotely trivial.

      Netflix's recommendation algorithms have undergone multiple generations of evolution, and Netflix was very early as a pioneer of crowdsourcing before the term even existed.

      And now, Netflix is deliberately trying to disassemble the current content delivery model whereby things are bundled and then bundled again. The show is bundled with other shows in the network, and the network is bundled with other channels in the cable/dish/FIOS package. Netflix is creating entire series and delivering them a la carte; they are also producing those series in a different way, based on what they have learned (through...wait for it...RESEARCH) about how people will consume such shows when they are made available all at once instead of parceled out an episode at a time over the span of months.

      I get a kick out of how as soon as a company has a lot of market share, a widely shared opinion on Slashdot forms that they must somehow be predatory and evil. As I see it, Netflix came out of nowhere, defeated the existing and universally-despised incumbents, survived attempts by major companies to copy their business model (showing in the process that for all the simplicity exposed to the customer, Netflix really is doing some amazing stuff in the back-end operations) and continued to deliver good customer service. I've never had a bad experience with Netflix, and that's saying something after over a decade as one of their customers. Seems to me that they're what I want big companies to be like...unlike pretty much every other company in the entertainment industry. Do I like every single solitary thing they do? No. I don't like every single solitary any company...or person...does. But when they say that X is part of their secret to success, I tend to believe them. It seems to me that they know more about how they got where they are than any of us do.

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      For your security, this post has been encrypted with ROT-13, twice.
  2. Well, it is from the bring-your-D+-game dept. by Anonymous Coward · · Score: 5, Informative

    14 errors in font-awesome.css, over 50 errors in application.css, "Expected media feature name but found 'touch-enabled'" I don't even know what that means, but it came up a dozen times, downloadable font format unrecognized, another 50 errors in providers.css...

    1. Re:Well, it is from the bring-your-D+-game dept. by ThePhilips · · Score: 5, Insightful

      And that basically outlines the problems with the "A" players: they are poor team players and they do not like routine mundane work.

      Developing a skeleton of the application might be the task suitable for the "A" players. But the rest of it, making it really working for everybody, is very often "too easy" and "boring" for them.

      Corollary. From the start on, the "A" players deem many design solutions as not feasible, because they entail lots of routine mundane work which they are unwilling to accept.

      But then, Netflix doesn't do anything particularly sophisticated, so the strategy might seem to work. But in a nutshell, they are simply throwing money around.

      --
      All hope abandon ye who enter here.
  3. streaming media firm has opinion by Anonymous Coward · · Score: 5, Insightful

    Leaving aside the obvious retort that Patty McCord sounds like she no longer fits, this sort of problem cannot be solved as long as people think they're all such special snowflakes that they don't need no stinkin' union. Work hard enough and you might just win the race to the bottom!

    Anyway, they're just a streaming media company who got in there at the right time. It's not as if they do anything particularly remarkable, so when they talk about hiring "'A' players" they really just mean people who are mewly, pukey and subservient enough to fit the corporate culture. And, as summary notes, this is less about innovation in hiring+firing and more about starting the lobbying machine.

  4. This is whats wrong in the USA by Anonymous Coward · · Score: 5, Insightful

    Maybe you could just ask people why they're no longer "A players" (which is a crap word in itself) or if they're going through a rough patch in the life?
    Work is only 8h to keep you fed, it's not the center of your life. Everyone seeing it different will burn out - and maybe that's what's happening to their former best people. Or they're simply content with their work now because their fondest ideas have been implemented.

    You can't force creativity which is the basis of excellent work and great ideas. You can only create a stable basis and trustful environment, so that ideas will flow and will be discussed in a proper manner.

    Also perpetual competition within your teams and organization does NOT lead to the best results. It leads to fear, sucking up and everyone's self hidden agenda to keep their seat.

    The company's statements are truly the core of what's wrong with the USA and what we in Europe have fought for ages. Still, it's creeping in...

  5. Well, it worked for so many others by pieterh · · Score: 5, Insightful

    Netflix isn't the first business to put all the weight on the players while ignoring the game. It doesn't matter how many A players you hire if your organization has deep structural problems. Microsoft would be a prime example.

    In contrast, you can build extremely effective organizations out of ordinary people, if you allow them to organize freely around problems, compete honestly, delegate at will, and so on.

    1. Re:Well, it worked for so many others by JaredOfEuropa · · Score: 5, Interesting

      This has been my experience as well. The best teams and companies are those who have a good mix of people, and who know how to utilize talent. For example, I've worked with an old geezer who was rather over the hill as a designer / analyst. A "D" player at best in his assigned role. However he had a ton of knowledge about the company, projects and people, and in some ways he was the department's "memory". He also had good ideas about how to organise teams and company processes, and he was a brilliant coach. He wasn't good at actual management jobs, so... they left him where he was, and where he was perfectly happy. Adding a ton of value to the company on a daily basis. Freely organizing around problems is exactly what he did.

      That's not to say you don't need the right mix of people and skill levels to be successful. A-teams are probably as likely to contain the right mix, and in my experience about as likely to recognize it. Unless of course you stack the deck by saying that your A-team also has an A team lead who knows everything about this, but I've never seen this in practise.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  6. Bye-Bye, Netflix by Jane+Q.+Public · · Score: 5, Insightful

    "Continuing her Scrooge-worthy tale, McCord adds that firing a once-valuable employee instead of finding another way for her to contribute yielded another aha! moment for Netflix: 'If we wanted only "A" players on our team, we had to be willing to let go of people whose skills no longer fit, no matter how valuable their contributions had once been.'"

    Sounds like the epitome of short-term planning.

    Congratulations, Netflix. Good (or not so) to know you. Really sorry to see you let it go to your head.

  7. Only good can come out of this by Anonymous Coward · · Score: 5, Insightful

    Sounds like a great place to work in, when, no matter how much blood you've spilled to get the latest and greatest out the door, you can get let go the very next minute you need to cut back a little to recuperate.

    Remember kids: These kinds of people aren't interested in what you've learned or from your experience, not even from within the same company. Why? Because THEY are incompetent, and thus incapable of valuing experience, competence and knowledge. Also, they want to destroy your country for profit.

    Psychopaths tend to view life as a game. And to be grossly incompetent. Thus the need to create scapegoats out of their own failings, instead of to ensuring ownership, bringing stakeholders together, make plans together and create organic and agile processes to ensure value.

    Captcha: salesmen

  8. Re:Nasty, but true by Anonymous Coward · · Score: 5, Insightful

    I think that the idea of ranking people on a line is meaningless, primitive penis-waving.

    There is simply no such thing as an "A player", "C player" or "F player". Different people bring in different ingredients to an organisation. As Einstein said, if you judge a fish by its ability to climb a tree, it'll spend its life thinking it's thick - the flip side is that if you judge a monkey by its ability to climb a tree, it'll spend its life thinking it's a genius. An organisation needs swimmers and it needs climbers. A good coder can make for a mediocre architect, and vice versa. The marketing department would have a tough time with a command line, but you put the best software project manager in marketing and they produce laughable, amateurish crap (no matter how great they think it is). This reflects not just experience but a variation in underlying abilities.

    I've found lots of people a pleasure to work with, and in each case they've had a different skill, but in every case they're honest and co-operative. Indeed, a skilled person without ethical values is more detrimental to an organisation than an ethical person without skills - it's much easier to teach skills than values - though a good employee must have both.

  9. Can you run a Tech Company on Grade A folks only? by Calibax · · Score: 5, Interesting

    Here's the problem. Grade A people expect to do grade A work. In almost every organization there is a ton of work that doesn't fit into this category but still needs attention. Code gets old and has to be updated, and there's a ton of work that doesn't require the brightest and best but still has to be done.

    Now the grade A people don't want to know that. They want to work on the sexy new stuff that makes them look like the superstars they are. They might put up with maintenance coding for a while, but they won't stay there. They will want to move to better things, and if they can't they will move to another company - and because they are grade A, they can do that with relative ease.

    Google used to have the same issue with a grade A requirement, and they found that products stayed in beta for years as a result of engineers moving on when the interesting parts of the code was done. They even had to cancel some products because they couldn't get engineering resources that wanted to work on them. So they lowered their standards a little and things improved somewhat.

    By the way, I'm not knocking maintenance programming - that's often difficult work. Maintenance guys have to come up to speed quickly on systems they never wrote and then make the code do things it was never designed to do, and finish it in an impossible short deadline, because it's "only" maintenance. But it's not sexy enough for most grade A folks.

  10. Re:'A' Players Make a Lot of Questionable Decision by Martin+Blank · · Score: 5, Interesting

    I think the choice of VC-1 came because it was supported by Silverlight while H.264 was limited if present at all. VC-1 is also the protocol of choice for Blu-Ray, and the time saved simply copying the files instead of moving them to H.264 may be significant.

    They're the largest in their field and have little real competition, so they must be doing something right. They're also in the process of moving away from Silverlight, provide a primary source of more bandwidth across the Internet than perhaps any other single company (not counting CDNs like Akamai), and maintain a customer satisfaction rate that is the envy of most of the entertainment industry. The executives may need to be smacked around a little, but it's hard to argue that the company as a whole has many serious problems.

    --
    You can never go home again... but I guess you can shop there.
  11. Re:Torrenting hurts these guys... by _Shad0w_ · · Score: 5, Interesting

    Sort of: they use torrenting stats to work out what's popular and acquire licences to stream it.

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    Yeah, I had a sig once; I got bored of it.

  12. Incentives. by Anonymous Coward · · Score: 5, Insightful

    People with an employee mindset naturally want job security, and consider the provision of such to be a moral obligation of employers. The reasons are obvious.

    Employers, on the other hand, face the possibility of paying high salaries to a staff full of under performers, and ultimately harming (or losing) their business because of this. Neither they nor *any* of their employees will be very well off if the business goes under. So, from their perspective, it is morally obligatory that they hire the best and get rid of people who are becoming dead weight.

    So, the two perspectives directly contradict. Each sees the other as a moral blight. On the one hand, employers are seen as sociopathic assholes that demand everything you have to give and make no promises in return. On the other hand, employees are seen as lazy assholes that demand high salaries in perpetuity with no guarantee of productive output at all.

    Each has good reason to find the other to be morally flawed, and to try to manipulate the legal system to force the other to play by one's own rules. This will never change. Articles like this one, and counter-articles, will be written in perpetuity, because neither side is objectively correct. Or rather, both sides are correct even though they are in direct disagreement.