The Netflix "Reference Guide on our Freedom & Responsibility Culture"

Well, this isn't an academic paper, and it's not even directly about software engineering, but I still find it a fascinating read, and related to the work of many software engineers in the industry. I'm talking about the Netflix "Reference Guide on our Freedom & Responsibility Culture". I recommend that you read it first: it's a fascinating read. Many of the ideas and principles presented there make perfect sense; some are a joy to read. Still, the document left me feeling troubled. Below is some criticism on two of the ideas and principles presented there.

The first painful point appears on page 26: "adequate performance gets a generous severance package". In other words, if you're just okay, you're outta here: we only want superstar performance. This is further hammered on page 29: managers are actively expected to let go of anyone they would not "fight hard to keep": the so-called "Keeper Test". The basic idea is to maintain an all-star team (which Netflix claims it does successfully). But I know that, as an employee, I'd have a very hard time looking at the eyes of my manager every day and wondering, "will she fire me today"? Oh, not because I'm not good -- I am good! -- but because I've had a rough week?

Sure, this is toned down a bit on page 32: "People who have been stars for us, and hit a bad patch, get a near term pass because we think they are likely to become stars for us again". But what's "near term"? If I hit a bad week, it's probably OK. A bad month? If I get pregnant (hypothetically speaking), how likely am I to retain my job if I hit a bad trimester? I can easily see how a short bad period can lead an employee to a downward spiral, caused in large part by his worries over retaining his job.I understand that job security in the US is not nearly as strong as it is in Europe, so while this is an extreme case, it's not drastically different than the case of most employees in most companies. But it still sounds unwise to me to have employees work in an explicit state of constant fear ("you should periodically ask your manager"..., p. 30). The annual comp review (pages 97-105) is just a different aspect of the same issue.

As an aside, I also think it's unwise for the company itself to release employees with proven capabilities, that are still good (remember, we're not talking about bad or lousey employees here: it's about good ones that are no longer stars), just to "open a slot to try to find a star" (p. 29). It's probably wiser to find the star first, and let go of the other employee later.

The second painful point the vacation policy -- or lack thereof (p. 68). Yes, the quip about "no clothing policy either" is amusing, but think about this for a moment: an employee who arrives sans clothing to the office is likely to lose the job; there's no policy, but everybody knows what's expected of them. With no vacation policy... what exactly is expected of employees? I have a strong feeling that if you'll measure the number of vacation days Netflix employees take annually, it will turn out to be significantly lower than that of employees in companies across the street. Because, when you constantly have to prove that you're a star, taking a week-long vacation sounds like a downright risk. When your pay is directly affected by your performance, you might work yourself to death. The advantage of a clear policy, N days per year, is that it's two-sided: while it limits the number of days off an employee can take, it also forces him to take some days off. And in most companies, a star performer that needs a few extra vacation days will find it easy to get approval for them.

I realize that my statement above, "when your pay is directly affected by your performance, you might work yourself to death", is true in many professions -- self-employed people, salespeople, shop owners, and so forth are exactly in this position. But as a salaried employee, I enjoy the benefit of knowing that the business will survive if I take a week off, and nobody will count it against me. In fact, I'm fully expected to use up those vacation days. This is one of the major advantages of being an employee in a large and stable company, and Netflix is robbing that advantage from their employees (while making it sound like a good thing).

These are the two key problems I've found with this document. There are many other nits to pick in there, but none is as important, I believe.