How Netflix Uses Daily Feedback to Maintain Its Elite ‘Dream Team’
Netflix Inc. has reaffirmed its unique, high-performance culture by officially eliminating all formal, cyclical performance reviews.
This confirmation comes from Netflix’s Chief Technology Officer, Elizabeth Stone, who detailed the streaming giant’s unconventional talent strategy that favors continuous, timely feedback and utilizes a rigorous retention mechanism known as the “Keeper Test.”
Elizabeth’s comments underscore the company’s belief that traditional HR bureaucracy impedes the speed and innovation required in the modern tech landscape.
The Engine of Continuous Feedback at Netflix
Elizabeth confirmed, “We don’t have formal performance reviews.”
This decision stems from the belief that annual, isolated reviews are too slow, too rigid, and ultimately ineffective. Instead, the company has integrated effective feedback into a daily cultural expectation.
The CTO emphasized that if the Netflix culture is being followed, candid performance discussions should feel “familiar and comfortable every day of the year.”
This allows for immediate correction and ongoing improvement, rather than requiring employees to wait for a delayed, formal assessment.
The ‘Keeper Test’: Maintaining a ‘Dream Team’
The cornerstone of Netflix’s retention philosophy is the “Keeper Test.”
This system requires managers to constantly ask themselves: “If a team member were leaving for a similar role elsewhere, would you fight to keep them?”
If the answer is no, the company opts for a clean, respectful separation, offering the employee a generous severance package.
This “sports team, not family” philosophy ensures that a top performer holds every role, which Elizabeth argues maintains a productive and “talent-dense” environment for all high-achievers.
Netflix Performance and Pay: An Immediate Link
The absence of formal ratings does not reduce accountability. In fact, performance is the sole determinant of compensation.
Netflix does not use structured pay raises tied to review scores; instead, it adheres to paying its employees at their “personal top of market.”
The continuous feedback system provides the evidence needed for rapid salary adjustments.
If an individual’s high performance warrants a pay increase to match the highest global compensation for their specific skills, management immediately holds that conversation.
This rewards exceptional talent competitively and avoids being bound by a yearly cycle.
Encouraging Two-Way Candor
Netflix’s culture of radical transparency demands that the process operates as a two-way street.
Employees are equally encouraged to seek direct feedback on their standing and to ask themselves honestly: “Do I want to stay? Am I excited about the work I’m doing?”
By fostering this constant, candid dialogue—both given and received—the company fosters the self-awareness and accountability necessary for sustained, high-speed innovation.
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