The role of an HR professional at Netflix

      Place yourself in the role of an HR professional at Netflix, asked to prepare the chief human resources officer (CHRO), Sharon Slade, for a possible severance negotiation involving a departing executive, Alice Jones. Your task is to create analysis and negotiation coaching recommendations for executive leadership (in either paper or presentation format), which the CHRO can read to prepare for the negotiation. You will review three resources listed below that provide background information about the Netflix organizational culture, performance expectations, and its unique approach to defined policies and procedures. (Relative to other companies, it has very few policies and procedures.) These resources are: 1. Library Article: How Netflix Reinvented HR 2. Article: The Woman Behind the Netflix Culture Doc 3. Website: Netflix Culture - Seeking Excellence You will also review profiles and case study background information for the CHRO, Sharon Slade, as well as the executive, Alice Jones, who may be terminated. These profiles, the case study background information and the three resources about Netflix provide the content of the case study necessary to complete the final project. (Note: While this case study is based on a real company, the people and the scenario presented are fictional.) Profile and Case Study Background Information: Sharon Slade—Chief Human Resources Officer at Netflix Profile: Sharon Slade Sharon Slade is the chief human resources officer (CHRO) at Netflix. She has been in her role at Netflix for three years, having been recruited from General Electric, where she worked as the vice president of human resources. Sharon rose in through the ranks in human resources at GE, and was instrumental in helping design, implement and manage the GE performance and development process, which used what was called a vitality curve. In summary, the vitality curve was a modified bell curve, using a 20-70-10 percentage. All professional employees were force-ranked by their individual performance against set goals and objectives each year. The top 20 percent of the workforce was identified as the best performers and were rewarded very well for their outstanding performance. The 70 percent majority was deemed as performing their job adequately; the employees ranked in the bottom 10 percent were identified as low producers and were terminated at the end of each year. The program soon gained the nickname as the “rank and yank” performance process.1 Sharon accepted the CHRO job with Netflix as she saw its organizational values as fairly well aligned with her personal values and work ethic, several of which are as follows: • You accomplish amazing amounts of important work. • You learn rapidly and eagerly. • You say what you think even if it is controversial. • You make tough decisions without agonizing over them. • You care intensely about Netflix’s success. • You are known for candor and directness. • Adequate performance is not good enough; adequate performance gets you a generous severance package. • Netflix is like a pro sports team. We hire, develop, and cut team members smartly, so we have stars in every position. 2  

Case Study Background

Netflix has a strong organizational culture that emphasizes high performance, continuous learning, and open communication. The company also has a unique approach to defined policies and procedures, with very few formal rules or processes. This culture of freedom and responsibility is reflected in Netflix's severance policy, which is simple and straightforward. Severance packages are typically generous and are based on the employee's length of service and salary.

Sharon Slade, the CHRO of Netflix, is an experienced HR professional who is familiar with the company's culture and severance policy. She is also a strong advocate for open communication and transparency. In preparation for a possible severance negotiation involving a departing executive, Alice Jones, Sharon has requested analysis and negotiation coaching recommendations.

Analysis

Alice Jones is a long-term employee at Netflix who has made significant contributions to the company. However, her recent performance has been below expectations. Sharon has met with Alice on several occasions to discuss her performance concerns, but Alice has not made the necessary improvements. As a result, Sharon is considering terminating Alice's employment.

If Sharon decides to terminate Alice's employment, she will need to negotiate a severance package with her. Netflix's severance policy does not provide any specific guidelines for negotiating severance packages, so Sharon will need to use her discretion and judgment to determine an appropriate package for Alice.

Negotiation Coaching Recommendations

In preparation for the severance negotiation with Alice, Sharon should consider the following recommendations:

  • Be prepared to discuss the reasons for Alice's termination. Sharon should be able to clearly and concisely explain to Alice why her employment is being terminated. This will help Alice to understand the decision and to move forward constructively.
  • Be prepared to negotiate a severance package that is fair to both Alice and Netflix. Sharon should consider Alice's length of service, salary, and recent performance when negotiating a severance package. She should also be prepared to discuss other options, such as outplacement services, with Alice.
  • Be open to hearing Alice's perspective. Sharon should listen carefully to Alice's concerns and try to understand her point of view. This will help to build rapport and trust, which will be important in a successful negotiation.
  • Be prepared to walk away from the negotiation. If Sharon and Alice are unable to reach an agreement, Sharon should be prepared to walk away from the negotiation. This will show Alice that Sharon is serious about the decision to terminate her employment and is not willing to negotiate beyond what is fair to Netflix.

Conclusion

Severance negotiations can be difficult and emotional. However, by following these recommendations, Sharon can increase her chances of negotiating a successful outcome for both herself and Netflix.

Additional Recommendations

In addition to the above recommendations, Sharon may also want to consider the following:

  • Reviewing Netflix's severance policy in detail. This will help Sharon to understand the company's obligations and to ensure that she is negotiating a package that is consistent with the policy.
  • Consulting with legal counsel. This will help Sharon to ensure that she is making sound legal decisions and that she is protecting the company's interests.
  • Enlisting the support of a trusted advisor. This could be another HR professional, a mentor, or a coach. This person can provide Sharon with confidential support and advice throughout the negotiation process.

By following these recommendations, Sharon can increase her chances of negotiating a successful severance package with Alice Jones and maintaining a positive and productive relationship with her.

Sample Solution

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