One of the main goals for any company is to attract and retain top talent. Some retention methods are obvious, such as offering competitive salaries, attractive perks, and team-building activities. However, many companies underestimate the true value of corporate culture and its impact on turnover rates.
In this article, we’ll define what company culture is, identify the elements of a strong culture using Netflix as a prime example, and provide a to-do list of tips for those who believe their company needs a change.
What Company Culture Is
There is no universal definition of this term that applies to all companies, but we can identify its key elements. These include the company’s values and perspectives, its attitude toward work and employees, and the shared beliefs that every team member agrees upon.
It also serves as your business card when it comes to company reputation in the eyes of competitors and attracting new talent. A highly praised company culture enhances your overall business image, boosting your popularity and recognition in the market.
What Company Culture Is Not
Many people confuse it with team-building strategies, believing that implementing these will create a strong corporate culture. However, these are quite different concepts. Examples of team-building strategies include holiday events, birthday celebrations, free coffee and snacks, and Friday evening games.
Hybrid and remote opportunities established solely to broaden the talent pool and increase retention cannot be considered part of your corporate culture. The main difference lies in the motivation behind these arrangements. When you hire employees for remote or hybrid positions because you genuinely believe there is no difference in where the work is performed, that reflects your culture. Conversely, if you do so merely to reduce turnover or as a strategy for talent retention, it is just a tactic.
- The key elements that define company culture are its values, beliefs, and views shared among team members.
- A well-defined company culture can contribute to improving the company's reputation.
- Elements like holiday events, free coffee, or casual Fridays are team-building strategies, not core company values.
- If you want to include hybrid or remote work opportunities as part of your corporate culture, ensure that you genuinely perceive no difference in where people work, rather than just following trends.
So, What Makes Netflix So Unique?
In the title, we mentioned Netflix not for clickbait purposes. Netflix is widely recognized for its company culture, receiving both high praise and criticism. Numerous articles present two opposing viewpoints: some argue that Netflix's corporate culture is good and progressive, while others claim it is bad and toxic. However, only a few truly understand the situation as it is.
Netflix is not for everyone. This is something they state multiple times on their official “Netflix Culture” page, and it’s true. They address this openly and honestly, just as they expect their employees to do. This serves as a great example of the company embodying the values and beliefs they want their employees to share. However, what is so controversial about their culture?
Firstly, Netflix is a competitive company operating in a competitive market. They do not pretend to be all bubbly and fluffy; instead, they are transparent about the highly competitive environment within their organization. This can lead some people who do not share this value to view it as toxic. One of their key beliefs is that an employee fits the company as long as they are a top performer, continually growing both professionally and personally. The "keeper test," in which managers regularly ask themselves if they would fight for a particular employee (X) if (X) decided to leave, serves as permanent proof of this belief.
Secondly, Netflix is not a family nest where people cling to each other out of comfort rather than merit. It’s a team in which every member must contribute their maximum effort to remain part of the group, similar to a sports team. This also means that you are not tied to your colleagues by any responsibilities beyond your work. You have the freedom to shape your own life as you wish, with options like flexible vacation time and a choice of attire. You are a responsible adult, accountable for your actions and decisions, not your company.
Thirdly, Netflix elevates honesty and feedback to a whole new level. In a typical company, feedback usually flows top-down, with managers sharing their thoughts on employees' achievements and mistakes. However, at Netflix, feedback can come from anyone, at any time, in any situation. This requires employees to learn how to both give and receive feedback. It’s a core aspect of their culture, where silence is considered far ruder than providing an honest negative review.
- Netflix's company culture is widely discussed, receiving both praise and criticism
- Netflix acknowledges that its culture may not suit everyone and promotes openness and honesty among employees.
- The company emphasizes a competitive environment where employees are expected to perform well and grow, which may not appeal to everyone.
- Employees must actively contribute to the team’s success, similar to a sports team, without relying on personal connections for support.
- At Netflix, anyone can give or receive feedback, fostering an environment where honest communication is valued more than polite silence.
Is It a Perfect Example to Learn From?
At some point, no, it is not. As we began this section by mentioning that some people consider Netflix’s culture toxic, we acknowledge that others will genuinely feel the same way. It is not perfect, and it is not for everyone.
It works well not because it’s a one-size-fits-all solution, but because the CEO and executives surround themselves with like-minded individuals who share the values they promote within the company. This is the key to building a strong corporate culture.
If we look from another perspective, there is definitely much to learn from Netflix. The main lesson is that a strong company culture can work wonders just as effectively as a solid marketing strategy or sheer luck. Netflix has grown from a small DVD-delivery start-up to the leading competitor in entertainment and the most successful online streaming service for a reason. Part of that reason is its strong corporate culture, which enables the company to move forward as a cohesive unit, sharing ideas, values, and beliefs.
Their culture is unique, as it was established by its CEO. If you want your company to develop a similar culture, you shouldn’t simply copy Netflix, Google, or any other large, successful corporations. Instead, you need to identify your core values and ensure that your employees share them.
- Although Netflix is famous for its company culture, it is clear that it won’t suit everyone. When it comes to company culture, there is no one-size-fits-all solution.
- One essential lesson we can learn from Netflix’s example is that a strong corporate culture can work wonders for a company’s growth and recognition.
- If you want to build something as strong as Netflix’s culture, you should not simply copy others but implement what is truly important to you.
How Can You Develop a Strong Company Culture?
The core idea to always keep in mind when integrating and developing a company culture is genuineness. Your company means your rules, and this should be evident in every aspect of company life. Don’t pretend to be someone else or to like something you don’t. This approach won’t last long, as you’ll continue to attract employees who don’t align with your values.
Your “rules” shouldn’t just be written on paper and hung on the wall for everyone to read as a reminder. Instead, they should be shared internally, creating a common vibe within the company. Once this foundation is set and developed, you or your HR department will be able to determine whether a job seeker aligns with this vibe from the very beginning. So, where should you start?
First Step: Cultivate Respect
Respect and inclusion are fundamental values that must be present in any healthy environment. Without them, building a stable culture and a strong team becomes impossible.
You should pay attention to employee relationships both within and across departments. Monitor any office rumors and take necessary measures to eliminate feelings of disrespect or bullying in the workplace. This doesn’t mean employees cannot express their opinions or voice their criticisms; rather, it encourages doing so in a healthier manner where no one feels hurt or disconnected.
You may find yourself in a position where you have to let go of a strong and intelligent individual for the sake of long-term team building rather than immediate success. Ultimately, it’s essential to remember that you are responsible for defining the kind of respect you want to cultivate within your team.
- Foster respect and inclusion as the foundation for a healthy culture.
- Keep in mind that, since it’s your company, you are the one who decides how respect should be defined.
Step Two: Bring in the Purpose
It’s essential to help your employees feel the purpose behind their actions. When individuals work toward a shared goal, they are more effective; however, their performance improves even further when they understand how their personal objectives contribute to achieving that common goal.
By “common,” we typically refer to the overarching goal that the organization pursues—specifically, the value it brings to the world or to the people within it. For some companies, this goal is easy to recognize: Netflix provides entertainment, Apple advances technology, and Union Pacific Railroad facilitates transportation.
However, as an employer, you bear the responsibility of helping your workers understand the purpose of their roles and the value they contribute to the company and the team as individuals. This awareness will enhance their engagement in the process, as well as their self-awareness and sense of importance within the organization.
- Employees who understand the value they bring to the project, team, and company tend to perform better, resign less, and are generally happier.
- It is the employer's responsibility to ensure that every employee clearly understands their purpose and value.
Step Three: Shape Your Team
Even if you’re an exceptional leader with outstanding organizational skills, it’s nearly impossible for every team member to excel equally. Therefore, your next objective should be to outline your vision for the ideal team structure.
What do you think is better for your company: strong individual performers who strive for excellence in their work, often ambitious and eager to stand out, or team players who are willing to sacrifice personal goals for the sake of the team and are dedicated to the company’s mission?
- One of the essential steps in building a corporate culture is shaping your team.
- To achieve this, you need to decide between strong individual performers and bonded team players, or try to find a balance that works best for you.
Step Four: Gain Speed
People can generally be divided into two groups based on their readiness to take risks. On one hand, any entrepreneur is inherently a risk-taker simply by starting a business; on the other, how far are you willing to go with your bets?
There is a scale ranging from “step-by-step growth” to “risky rapid strikes.” Determine what you believe would work best for you and your team, and try to stay committed to that approach. This will enable your employees to support your vision and match your pace.
- Risk-taking is a basic part of being an entrepreneur.
- Ensure that the team members you hire share your attitude toward risk.
Step Five: Structure Work
In the field of information technology, there is a work methodology known as Agile. This approach aims to promote flexibility, collaboration, and, at times, chaos. Teams that adopt Agile typically prioritize creativity over strict planning and negotiation, believing that iterative processing of the product will yield the best results.
Agile is now recognized as one of the most modern and effective approaches to work. However, it’s not for everyone. If you prefer linear methods that emphasize slow and steady development—where you can monitor every step your team takes and redirect them as needed—then that’s perfectly fine. Choose the approach that best suits your needs.
- Your team members should also align with your work attitude and the approaches you’d like to implement in your company.
- For example, Agile is now recognized as one of the most innovative and successful methodologies, although its characteristics may not suit everyone.
In conclusion, your attitude toward your company, employees, and work significantly shapes your success. To cultivate the right mindset that works best for you, it’s essential to be self-aware and skilled at reflection. True growth stops at the roots, not the leaves. If you want your business to thrive and grow sustainably, you must also develop personally and encourage your colleagues and employees to do the same.