Netflix CEO: why you shouldn't try to please your boss

With 193m subscribers worldwide, Netflix has revolutionised the TV and film industry. Reed Hastings, the firm’s CEO, tells The Economist Asks podcast that its success is built on the radical management style he has created within the company.
00:00 How Netflix is managed
01:23 Why employees shouldn’t try to please their boss
03:09 Netflix's reputation for firing people
03:25 Unlimited holiday at Netflix
04:05 His management learning curve
Further reading:
Listen to the full interview with Reed Hastings on “The Economist Asks” podcast: econ.st/33j6ReK
Find all of The Economist’s podcasts: econ.st/3m8YJpG
See the data on how covid-19 boosted streaming services: econ.st/3k2euwM
Read about Disney+ and the streaming wars: econ.st/35lN4xF
How covid-19 disrupted film and television production: econ.st/3m9V36Y
Read our article on Britbox, the BBC’s Netflix rival: econ.st/2Zp7Dpa
China’s box office is set to become the world’s biggest-what does this mean for Hollywood? econ.st/3m4Iv0K
Why Google has outgrown its corporate culture: econ.st/35rD5XJ

[@QuestionEverythingButWHY]

“It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” --Steve Jobs

[@kalimacho1]

Just because they're Smart doesn't mean they don't have their own agenda Or they can never be wrong

[@cornelesmokodompit1683]

Sorry asnking now tim is you

[@oliverm1255]

Trust me, Netflix will fire anyone who takes more than 2 months holiday.

[@atedejong5620]

I guess these are unpaid holidays 😬😬😬

[@Withjoyfulsenescence]

There’s the maternity leave

[@ankitkalavagunta8951]

Ofcourse 2 months is quite a lot.

[@hainish2381]

It's just another way to optimize performance. They don't care about employees.

[@slop123456789]

Should've pressed him harder on some of the glaring contradictions of his managerial style; ie: unlimited holiday yet your job is always on the line? This clearly incentivises employees to take LESS time off than they otherwise might have in a more traditional arrangement. In reality its about Netflix looking progressive and reaping tax benefits while squeezing even more out of their workforce.

[@alastairhewitt380]

You need more likes...

[@Macxermillio]

my thoughts exactly

[@planetChristie]

Obviously if they abuse it they can get fired...but for some people you offer freedom and it makes them do right and more productivity 🤷🏾‍♀️.

[@Macxermillio]

@@planetChristie If your job is always on the line and you have to prove yourself, taking a vacation might be a scary thing to do when you know that others are competing with you for a position. As we have heard Netflix is famous firings. I don't know if that was a joke but that is what I heard in the video. So a worker might get punished for taking a break since it is "their" choice.

[@commentmachine1457]

it is not always a contradiction if a company wants to incentivize the best employees to take more holiday or free time. I work for a tech giant and I could tell you some employees are 100x more productive than the average, while the many others simply refuse to do little things. In which case, they want to give the super-employees more holiday for covering everything while firing those lazy ones if they don't meet the basic target.

[@ripplesandleaves]

Unlimited vacation, at any company, usually results in people taking less vacation, and from an accounting perspective, is beneficial in significant ways to the company. They keep the minimum required by law as potentially owing to employees upon departure, rather than the higher amount they might be entitled to in a more traditional system.

[@MrChet407]

Why go to work if you have unlimited vacation

[@twang96]

Unlimited vacation is for suckers. It benefits the employer as you say. I read Patty McCords book. She was the head of HR at Netflix. It’s terrible. Basically it’s lazy HR who get an excuse to not do their job and bully employees by saying “you’re an adult, you figure it out”

[@jodawgsup]

@@twang96 Exactly, and it will of course be reflected in your pay or possible promotions; they will just look at who takes up their holidays the least.

[@davidcooks2379]

Yes, it's race to the bottom

[@user-ir8fx6uv1j]

So within the right culture, this guy's ideas aren't bad. If I was given unlimited leave, I would take reasonable amounts of leave and make sure that I am performing highly. However, in the larger world, you really have to get the environment right for this. I have certainly had managers who would absolutely abuse this and lie to you about your performance to try to force you into working ridiculous hours. Similarly, this guy's idea of your job is always on the line isn't bad until the culture turns that into bloodsport.

[@HaiLeQuang]

I doubt that except Netflix or probably tech startup culture, you'd get such environment. I'm working in consulting now and most manager expect long hours, dedicated staffs. And when he's not pleasing, you'd pay the price at performance evaluation

[@thetooginator153]

Jason Grigsby - Bingo! I have seen corporate cultures where managers lie to employees about their performance to extract more work out of them (which usually means more hours, but less productivity), and more relaxed corporate cultures. The more relaxed corporate cultures almost always last longer and are more successful (in my experience). I don’t think any of the pressure cooker companies I worked for still exist, whereas ALL of the reasonable companies I worked for are still around (after MANY decades).

[@HaiLeQuang]

@@thetooginator153 Exact opposite from my experience. I'm from Asia country and most thriving managers/executives are the one who is able to extract more from their employees. They dont care about productivity, they care about final result.

[@SuperSeltzer]

It is so easy for him to say that stuff that he says. He's the boss.

[@johnnolan2356]

Yeah, trust me- if you take unlimited vacation your they’re going to fire you.

[@megja1812]

Exactly and Netflix is a unique business, its put a lot of people out of business along its way.

[@dvHoffy]

Mans worth billions and has a potato for a webcam

[@nhatnguyen1037]

I think he intentionally blurred his back wall.

pewdiepie

[@magnuslindgren5640]

There's a reason he's rich

[@GoodBoyFx]

could invest in bluetooth wireless earbuds as well.. what example is he setting by behind technology while interviewing. ' I hate harsh CEOs who once make it to top, try to make things HARD and are harsh on their employees because these Ceo's have that PRIVLAGE & things they do to make the self/ego feel self-important. Disgusting....

[@ReasonableRadio]

"Is this a working class aesthetic??"

[@NippleTechnology-cc8bg]

"Bring a bucket and a mop for that WAP" - Bill Gates

[@anischorfi1027]

😂 😂 😂 😂 😂 😂 😂 😂 😂 😂

[@vietimports]

doesnt netflix fire the bottom performers? the ones who dont please their boss?

[@kanishkgupta677]

yeah its more not meeting standards of work rather than please their boss if you look at it like that.

[@Darkpoweron]

Quite standard

[@hayati6374]

Maybe in the us but in other countries that is not as easy

[@kanishkgupta677]

HMSBlackPrince yes but that only proves my point to the comment we are all replying to.

[@jodawgsup]

@@kanishkgupta677 This is just semantics.

[@jorgesalvador9069]

Excellent to hear, I'm 29 and I own a business. so having a boss, that's not available to me. But I should be well off If I continue to capitalize on my investments as I've been.

[@kristian.or.levites2545]

Nice one getting in young, look into private pensions maybe. if you haven't already. I made 42% on my recent investment with Paul. just when I was out of dinner.

[@jorgesalvador9069]

Also, I mostly have high dividend paying stocks , with a few growth tech stocks like Tesla's.

[@jorgesalvador9069]

yes you can make money doing it but more people fail than succed. investing especially dividend can create much more wealth long term if you're under 30. if you're older and just starting, trading might be your best bet. But do a lot of research. best of luck to you.

[@akahsylvester9877]

@ Kristinn, I think Paul us much more of short trading than he appears on long term.

[@kristian.or.levites2545]

@@akahsylvester9877 i guess that's why he trades high leverages on certain trades. And he certainly made he's money.😆

[@importantname]

If you would rather be somewhere else - dont do what your boss wants you to.

[@danthadon87]

So many golden nuggets in this little interview, thanks for that! More please.

[@cvrajendra]

Netflix hires the best grads, typically those with high grades, those who anyway perform no matter which company they join

[@windskm]

Does netflix hire grads? The word out there is they only hire seniors in general

[@FaithsStardust]

@@windskm I think I read somewhere(it might have been Netflix’s website) that UNLESS a grad is truly exceptional, they don’t hire graduates.

[@mizan1030]

Loved what Reed said at the end !

[@amdl270]

My boss recently threatened me to take a big fall for him in front of multiple high up leaders. I refused/didn't please the boss. Afterward he got so hostile (but in a cunning way so it's hard to report to HR) that I couldn't take the panic attacks anymore and I decided to leave the company. At the end of the day he won even though i didn't please the boss. He still has a high paying job while I'm struggeling to find a new one in this economy. He is still a leader and no one is going to change that. He still has his enlarged ego im tact and gets to bully others without consequences.

[@abcd123906]

That’s really sad. But don’t you think over time if enough people leave, like you did, that those above him will eventually start wondering whether HE is the problem, since all those under/around him are leaving?

[@cheryl2367]

I love this video and the free 28 mins podcast. Thank you!

[@tom5110]

"Better to focus on flexibility and tolerate less efficiency." Interesting.

[@Cubanosdeaquiydealla]

One of the most interesting things in business I have ever heard

[@QuestionEverythingButWHY]

"If you really look closely, most overnight successes took a long time." -- Steve Jobs

[@animerocks2468]

Like BTS?

[@josephbrennan370]

I literally went from one video to another and you were the first commenter in both.

[@nathanngumi8467]

Indeed.

[@pac1fic055]

You need to please your boss’ boss! Everyone knows that!

[@Antdes158]

There is a typo in the title.

[@bharatiyajokesparody]

What's that?

[@alsosprachzarathustra5505]

That's a common issue caused by moral hazard. Managers often use their position to force employees to please them instead of the company. Most CEOs are too far away from daily business to get all the things going on in their company. Loyalty to individuals is often considered to be more important than loyalty to the company.

[@bobimullen7879]

I wonder how many employees fighting for their place ever get a day off! Sounds like manipulative nonsense. You put a limit on holiday in part to ensure people take that amount each year, enough to stay productive and healthy...

[@ronanstephens1597]

Exactly what I was thinking. Companies love doing 'friendly' things for employees and customers that actually just benefit the business. Like Google using its lovely free canteen and basketball courts to justify horrible working culture and lower wages.

[@qwertyu5363]

Excactly. Everyone should be required to take a minimum 4-5 weeks off every year imo.

[@Sophia-qe2vn]

Sounds like you project your own fears here. Your way of thinking is not reality and reality says, people working under such conditions are more productive. Higher productivity doesn't mean more working hours, it means more efficient working.

[@ronanstephens1597]

@@Sophia-qe2vn I don't think anyone is projecting fear. They're expressing suspicion that perhaps this working environment and culture aren't as lovely for the employees as he makes out. Maybe the employees think its great. We don't get the views of current and previous employees so we can't get a sense of that. All we get is the pitch from the boss who obviously presents it as great.

[@mywatchvid]

@@ronanstephens1597 i have a different interpretation of what the ceo said. what I think he's talking is about the betterment of the company performance by enabling more creativity without sacrificing competitiveness. I didn't hear any part of making it a lovely environment, but enabling creativity to increase productivity. This heavily matters on industries that demands lots of creativity. The best example for this one is GEORGE R R MARTIN. If you know game of thrones, it was created thru alot of creativity but the writer always take a long breaks before writing new books, because creativity cant be forced.

[@abdullahademoglu8601]

Nice

[@Jessijitsu]

WOW!

[@AlessandroMarcolin]

I wouldn't want to work for a company where you need to be constantly on the edge, also because I wouldn't want to give all of myself to my job, as I happen to have also other things in life.

[@aimlesfez]

He's part right about pleasing bosses but ironically Netflix has a "keeper test" which is incredibly ruthless towards th workforce, arguably more than traditional practices.

[@gamebozco]

Are you telling me no one got in trouble greenlighting "cuties"?

[@petermaree]

How do you then discipline staff if no guidance by rules

[@marissadower-morgan3313]

Creative people need to think out new ideas daily , not following a dogged protocol , other wise nothing gets better

[@sakshamgoel17]

*The next day* Employee to boss: Fu** you bi*ch, I am out.

[@luciomedea]

He literally states he values the model of sports where people care more about the game while risking physical injuries. And the interviewer doesn't even blink about it

[@windskm]

That's not what he said

[@luciomedea]

@@windskm literally, copied from the video, starting on 2:38 and ending at 2:59: "we model ourselves on professional sports where you want the team to really work well together and to play their heart out. I mean, athletes know that they can be injured at any moment but they don't focus on it, they focus on how do they play the best game that they can and our employees are similar." Now, that might not have been what he WANTED to say, but it is what he said, and it does reflect how he thinks about employees: the company comes first, at the expense of employees, even when the health of employees is involved. The focus is on "the game," that is, on the needs of the company, and not on taking care of themselves. You can know that "you can be injured" but you have to decide to focus on what the company wants from you, and not on avoiding such injure. In a highly competitive culture, where you set your own free days, this means a lot of people don't take free time at all and "play their heart out" so that they are not fired.

[@bluegreenOD]

Recode’s recently released podcast series ‘Land of the Giants’ - ‘The Netflix Effect’ - is worth the time investment - a fair and balanced account of the history of the corporation, its management (employer - employee) paradigm, strategic goal and year to year tactics

[@xerxes2518]

What's Netlix?

[@xerxes2518]

@Karm G Ohhhh...

[@teeI0ck]

this video is very helpful. 🧗‍♂️ its showing an accurate and deep understanding; great perceptive. 💡 Muito obrigado for all the insightful information.. 🤝

[@vascoamaralgrilo]

Interesting...

[@user-ff3bb4oj8v]

Quite interesting to have a management style inspired by the Hunger Games, when you don't even own the franchise!

[@cekcekrokrok9979]

Oh wow, something that would not happen to my workplace

[@AlijandroI]

First several minutes sold me.

[@jjw238]

There is gonna be some fun in Netflix office tomorrow.

[@AstronautOtto]

when I read the title i was skeptical, but when you hear the guy, there wisdom to it.

[@deevee4994]

You can explain his management style with one word: CUTIES

[@keltoumanaseh6346]

Aspiring it is

[@twang96]

Economists didn’t even plug his new book

[@Islaras]

Who's here when there's a typo in the title

[@shanhussain6114]

"Hail hydra" - Lex Luthor

[@youtubebystander9294]

They do this to save cost on those who dont take some of their leave convertible to cash. Im one of those employee who does it.

[@hypernation8298]

Will you pay more for "independent thinkers" as oppose to "low-responsibility workers"?

[@RahulDas-rz8dh]

Correction "Netflix" not " Netlix"

[@bunnythebuddha4449]

This guy is genius

[@octaviiomartinez2432]

Jajajajaja, el siguiente flix,saludos.

[@vikramdeshmukh6373]

What this guy is saying about flexibility is something about social culture. In western world norm of flexibility could be quickly adopted, but asian countries it may be abused. So there must be a fine balance in the way employment agreement is drawn upon. At times I have noticed, due to years of precipitation of corporate culture you tend to think unilaterally or just become one inside the box. At times fresh graduates, who has no much exposure of the corporate world end up coming with very cost effective productivity gain ideas. Therefore to begin with it is very important letting every individual in the meeting to express their say.

[@rhyswells8725]

Why would it be abused in Asian countries?

[@vikramdeshmukh6373]

@@rhyswells8725 while responding this I may end up inviting trolls, but nonetheless ... let me communicate my perception. I am Indian-Asian. We are taught to respect the authority & be feared of them. This kind of upbringing is very much prevalent across all asian countries; be it like China, Japan, Koreas or likes of Pakistan, Bangladesh or Iran. If you cross with the authority you will be troubled thats how the culture is imbibed. On the contrary in the western world, kids move out of their houses right from their age of 15-16 years old. They learn to face challenges of their surroundings & become assertive. But this type of culture, they grow up to become more responsible individual & hence less inclined to abuse the flexibility they thrive in. On the contrary with sudden new found flexibility or freedom a sense of responsibility at times remains missing. Thats where & how I see chances of abusing flexibility is higher. Again for the argument sake, let it not be taken as stereotype, exceptions are everywhere.

[@eternally24k]

Why they both were still using webcam from 1995?

[@JitGanguly007]

Hastings should opt for better internet service.

[@619caliman]

Are comments being deleted. I have been checking these since the video has posted.

[@satyavir8]

It's impressive to see someone trying things which are out of box for many.

[@junokada8962]

Sounds like a very toxic, high competitive, cut-throat environment. No, thank you!

[@wajdiraach9874]

Focus on customer that's it

[@ryanrn4954]

Trust me, the bosses will fire people who let them unhappy.

[@blackstar-vh8vz]

Suit,.talk

[@inkbythebarrelandpaperbyth6905]

Place one foot in order the other on chaos. Jordan Peterson has entered the chat.

Next time you see a bug in the system, leave it there to stay flexible. 🙄 Managing on the edge of chaos? 😅 let me just throw some cool words that means nothing out there... CEOs are Seriously full of themselves these days.

[@erickrcisneros]

I think it’s a great idea,

[@martintaylor9356]

This guy soooooo gets it.

[@benchang1022]

Hone your craft so your boss will try to make you happy.

[@pixelboy7654]

Every idea is a great idea if you already are making millions.

[@mariaroserpoubernat9478]

Sih

[@stelsewhere3748]

THE SWAG.

[@noznip2008]

This feels a little like raising a kid, I wouldnt like them yo hide anything from me. And the only way to do that is accepting that they are learning thanks to mistakes. And that they shouldnt hinder from making them and keep learning.

[@pabloveloso7736]

It sounds all like bullsh*t!

[@80lilala]

What is the problem with the picture on his wall?

[@JustMeProf]

It's hidden from public view

[@80lilala]

@@JustMeProf yep, I wonder why

[@Sock1122]

Looks like Peter Schiff got a real job

[@bicyclemanNL]

Don't have to please the boss - yet sacked if you don't reach expectations based on being out performed.... lol

[@flowersflower110]

Remember "His Company is Built Different"

[@Thapanirmal]

Unlimited holiday? Please Hire me lol😄

[@tictoc5443]

I am pleased I dont work at netflix

[@Justin-ev8nn]

As if you ever had a shot of landing a job at Netflix.

[@tictoc5443]

@@Justin-ev8nn I would not want it ...but you're right they probably wouldn't want me either Win win;)

[@josehernandez6684]

What more can I ask for when I’m happy and satisfied with the way my trading activities is being handled daily by Lowery J and he also guides me with how the entire financial markets operate, this is really kindhearted of you Sir

[@psychiclewis7791]

The stock markets is appreciating with the like of gold, xrp, brentoil im so glad I trade and invest with my fund manager Sir Lowery J

[@alenpaul2523]

Cancel Netflix

[@fordthenudist9692]

I will always need Lowery J to handle my trades, as an investor I don’t have access to the electronic markets. He accesses the exchange network, and his system finds a buyer or seller depending on the order.

[@masonbudanova6527]

Jacob is really a genius. I trust him alone. Helped my family a whole lot and brought me out from a very harsh financial condition through his investment portfolio. No trader has ever done what he has done or is capable of doing such

[@liferajib]

This is not realistic

[@Neon2110]

Who is voicing these videos?

[@indigosix6511]

Is this supposed to be a lame attempt as a pr campaign

[@SOnderdelinden]

If they don’t change something soon in the Netherlands i’ll step out. The content is weak, ‘cheap’ and misleading a lot of times with changing covers for the same movie to make the library look variable and changing. Weird languages pop up with weird vocal translations. For the last year or so Netflix looks cheap, so cheap that I’m actually starting to worry about my 10 euro’s. In my case that’s pretty unique. Fortunately a lot of alternatives are coming around the corner.

[@mariaroserpoubernat9478]

this company and his boss, are very dangereos for the society. all de world must take off,

[@cornelesmokodompit1683]

Asking informasi is you asnking now tim is you adesten

[@Phlegethon]

Guy can’t afford a decent webcam?

[@saeedbasabain4188]

I hate it

[@Chaoes96]

Didn't know Netlix was a thing

[@user-pe7uf4om8r]

한국의 청년들이 공부와 동시에 뇌역량 확장이 필요하다 저는 생각합니다. 최고의 방법은 미디어라고 저는 생각합니다. 왜? 기회가 학교 교실에만 있다고 생각하는지 모르겠습니다. 👌🇫🇷🇷🇺🇨🇦🇲🇾🇺🇲🇹🇷🇸🇪🇬🇧🇩🇪🇨🇵🇧🇬🇦🇺🇧🇷😎

[@bigstabby]

What if your boss is an underage "cutie"?

[@freckrpeckr]

Sounds like bs and spin. I’m sorry but don’t Netflix just create, buy and upload videos to their subscription service? There has been one big “creative” move, from DVDs to streaming, that’s it and they act like their artists. He is having himself on, full of contradictions. Yeah I wish my work involved boring stuff, yet was as competitive as professional sport. U make me want to unsubscribe, which I already have.

[@rohanjeril9456]

This is the degenerate that approved cuties.

[@LaMayimba90210]

Ask him about cuties

[@AlexS-oj8qf]

So there IS too much in "inclusiveness" and "open-mindedness" ?

[@Grumbo991]

Toxicity at its finest

[@Sxchiko]

Viaing for your position is the worst advice I’ve heard since. It becomes an I and not a we company at risk due to personal selfishness. It conflicts with right for the business. Otherwise everything else was fine.

[@DEvilParsnip]

First principle thinking ... no it's not!! Your just hijacking elons buzzy words with the true meaning.

[@danieldelacruz7305]

This was actually my idea 💡 and they must of stole it from me I started talking about this in 2005.

[@jorgegomez524]

stop the satanic programing in netflix