Performance Management at Netflix (2024)

Netflix is a company well-known for it's supportive culture. But One of the biggest challenges that Netflix faced was that its traditional performance management system was not aligned with its culture. The old system was based on annual reviews and was focused on individual performance. This system was not effective at giving employees the feedback they needed to improve and grow. It also did not encourage employees to collaborate and work as a team.

To address these challenges, Netflix implemented a new performance management system that is based on the following principles:

• Frequent feedback: Instead of annual performance appraisals, Netflix employees receive feedback from their managers, peers, and subordinates on a regular basis. This feedback is used to help employees improve their performance and grow in their careers.
• Transparency: Netflix's performance management process is transparent and all employees have access to their performance reviews. This transparency helps to build trust and accountability.
• Autonomy: Netflix employees are encouraged to be autonomous thinkers and make their own decisions. This autonomy helps employees to be more creative and innovative.

It will be interesting to monitor the ongoing impact that this has on performance at Netflix.