Hiring for Match: The Case of Netflix

Hiring is perhaps one of the most important activities that takes place in a company, and it is common to hear managers talk about hiring the "best" people. Who exactly are the best people, though? And how do you get them to join your organization? Netflix, the entertainment company specializing in media streaming, is a thought leader in recruitment and hiring, and is responsible for many talent management practices adopted by other firms in recent years, including unlimited vacation time and eliminating annual performance reviews.

Who is Netflix looking for? Patty McCord, who served as the Chief Talent Officer for Netflix for 14 years until her departure in 2012, suggests that they are looking for a good "match." She cautions that when people say they hire for fit with company culture, they typically are thinking of someone they would enjoy sharing a beer with, which is not how match should be defined. Such an approach leads to restricting diversity as hiring managers and teams end up hiring people who are similar to them. Instead, they should be looking for someone who can solve their current and future business problems, and someone who shares the key values and goals of the company. In a Harvard Business Review article and a follow-up podcast, she shares the example of hiring a programmer who was working in an Arizona bank. The candidate was not a typical Silicon Valley hire, as he was a quiet guy who enjoyed woodworking in his free time, and was working in a traditional industry, but he had built an app enhancing Netflix. Ultimately, he fit the company so well because he was passionate about Netflix and the customer experience, despite his different background and personality. He was hired, and eventually rose through the ranks to become a vice president.

In terms of the skills they look for, Netflix considers future as well as current needs. Past experience and keyword matches may not be so helpful if the job itself is new. For example, when the company first became interested in hiring someone who could analyze big data, this was not a skill listed on many rsums. So they had to look for the right people in all sorts of industries that handled large amounts of data, such as insurance or credit card companies. They caution that job descriptions may be outdated and written for the person who left the job, and the company needs to consider the skills they will need in the future, or the skills they need right now in order to solve the business problems they are experiencing.

Netflix has a unique culture. Unlike many Silicon Valley technology companies, they do not have a lot of perks such as free lunch or on-site gaming. They also pride themselves in treating people like adults, which means a high level of empowerment and trust. Realizing that this culture is not for everyone, they try to attract the right person in multiple ways. The description of their culture is available for everyone to read, which they hope will weed out people who may not feel comfortable in such an environment. They also make sure that their recruitment and hiring experience signals their most important values. They avoid misleading people as part of the process. They share their biggest attractions, which they see as the ability to work with top-notch people. They also are honest in giving job candidates feedback about their concerns. Nellie Peshkov, vice president of global talent acquisition, sees this as a test: "Do they get defensive, or do they accept the feedback and seek to engage in a healthy and productive dialogue? That's a clue to see if they will be successful or not."

QUESTION

Netflix does not offer a lot of perks like Silicon Valley Tech companies. Why do you think so? What are some of the ways Netflix can use differently than tech companies to enhance employee intrinsic as well as extrinsic motivation?