互联网企业文化案例Netflix.ppt

* Pay Top of Market is Core toHigh Performance Culture One outstanding employee gets more done and costs less than two adequate employees We endeavor to have only outstanding employees * Three Tests for Top of Market for a Person What could person get elsewhere? What would we pay for replacement? What would we pay to keep that person? If they had a bigger offer elsewhere * Takes Great Judgment Goal is to keep each employee at top of market for that person Pay them more than anyone else likely would Pay them as much as a replacement would cost Pay them as much as we would pay to keep them if they had higher offer from elsewhere * Titles Not Very Helpful Lots of people have the title “Major League Pitcher” but they are not all equally effective Similarly, all people with the title “Senior Marketing Manager” or “Director of Engineering” are not equally effective So the art of compensation is answering the Three Tests for each employee * Annual Comp Review At many firms, when employees are hired, market compensation applies But at comp review time, it no longer applies! At Netflix, market comp always applies: Essentially, top of market comp is re-established each year for high performing employees At annual comp review, manager has to answer the Three Tests for the personal market for each of their employees * No Fixed Budgets There are no centrally administered “raise pools” each year Instead, each manager aligns their people to top of market each year – the market will be different in different areas * Compensation Over Time Some people will move up in comp very quickly because their value in the marketplace is moving up quickly, driven by increasing skills and/or great demand for their area Some people will stay flat because their value in the marketplace has done that Depends in part on inflation and economy Always top of market, though, for that person * Compensation Not Dependent on Netflix Success Whether Netflix is prospering or floundering, we pay