Reference no: EM133157734

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Netflix is a very dominant company right now in the streaming industry. Currently, Netflix generates about two million dollars per employee and has a yearly revenue of about 30 billion dollars. All of this sounds great and Netflix is very successful, but at what cost? There is a side that no one generally sees with an organization as successful as Netflix, the side of HR and employees that provide a majority of the work for the company, and are more times than not commonly mistreated. Netflix has an issue within that is not addressed, and that is called the Keeper Test. 

Netflix is known in its work culture to have what is called a Keeper Test, meaning that managers have the list of employees and would decide how far they would go to keep that employee based off of their work. The Keeper test is simple, it is a hypothetical situation that basically states "an employee is planning on leaving Netflix for another company, what would you do to keep that employee?" The keeper test can be a very valuable tool, but can provide biases because all it could take is one "off performance" from an employee to score low on the Keeper Test. Netflix is very result oriented, therefore when someone fails the Keeper Test, it does not matter how long they have been part of the company, they will be fired. One employee by the name of Neil Hunt, failed the Keeper Test and was terminated after a 18 year long run with the company. 

Another paradox that the Keeper Test provides is that there is going to be a future employee that no one knows exists yet, but when they do come into the company and score better on the Keeper Test than the original employee, that employee will be fired and the new one will keep their spot within the company. With this revolving door of employees and a constant fear of impressing the managers of Netflix, this can create high levels of job insecurity and can create a hostile environment, which will drive production into the ground. The Keeper Test is a clear indication that there is only so much the employee can do to impress the managers before another employee comes in to take their spot that they once originally claimed. 

Why was the keeper test adopted? What was the original purpose?

What Feedback systems can Netflix fix or implement with the Keepers Test?

How can a two-step feedback system improve the keeper's test?

How can an organization create a secure work environment? HOW can these be implemented in an organization?