Bias in Recruiting and Hiring
Netflix’s “Keeper Test”[1]
Since 2009, Netflix has created, updated, and publicized official descriptions of its company culture. One aspect of its company culture is known as the “keeper test,” which is a way for managers to evaluate employees. Managers were to ask themselves, “If a team member was leaving for a similar role at another company, would [I] try to keep them?”[2]
The 2024 update to the Netflix Culture Memo introduced a new dimension to the keeper test. Managers are now asked to also consider, “[K]nowing everything I know today, would I hire X again?”[3] Also new to the Culture Memo is the “dream team” concept that emphasizes performance over personal feelings. “Professional sports teams . . . focus on performance and picking the right person for every position, even when that means swapping out someone they love for a better player.”[4]
The Culture Memo also includes a list of the attributes that Netflix values:[5]
- Selflessness — you are humble when searching for the best ideas; you seek what’s best for Netflix, not yourself or your team; you take time to help others succeed.
- Judgment — you look beyond short term fixes in favor of long term solutions; you make wise decisions despite ambiguity; you use data to inform your intuition.
- Candor — you willingly receive and give feedback; you are open about what’s working and what needs to improve; you admit mistakes openly and share learnings widely.
- Creativity — you welcome new ideas; you are passionate and persistent in pursuit of more innovative solutions; you value artistic expression.
- Courage — you are vulnerable in search for the truth; you are willing to risk failure, or challenge the status quo, in the pursuit of excellence.
- Inclusion — you recognize your biases and work to counteract them; you work to ensure everyone at Netflix can do their best work, whatever their culture, identity or background.
- Curiosity — you learn rapidly and eagerly; you are as interested in other people’s ideas as your own; you’re humble about what you don’t yet know.
- Resilience — you quickly adapt to changing circumstances; you make tough decisions without agonizing or long delay; you embrace a hard challenge.
Co-CEO Greg Peters explained that Netflix prioritizes culture over strategy and execution because a strong culture will lead to better performance.[6]
How might the subjective nature of the “keeper test” reinforce managers’ unconscious biases when deciding whether to hire, retain, promote, or rehire an employee?
In what ways could the emphasis on personal attributes potentially disadvantage individuals from varied backgrounds who may exhibit these traits differently?
- Shibu, Sherin. “Netflix Updated Its Famous Employee 'Keeper Test' in a New Culture Memo — Here's What's Changed.” Entrepreneur, June 26, 2024. https://www.entrepreneur.com/business-news/netflix-has-a-new-culture-memo-heres-why-its-a-big-deal/476180. ↵
- Altchek, Ana. “Netflix just tweaked its famous ‘keeper test’ used to drive out underperformers.” Yahoo! Finance, June 25, 2024. Accessed June 28, 2024. https://finance.yahoo.com/news/netflix-just-tweaked-famous-keeper-213502055.html. ↵
- Netflix. “Netflix Culture.” Accessed June 28, 2024. https://jobs.netflix.com/culture. ↵
- Id. ↵
- Id. ↵
- “Netflix Culture.” ↵
- Somers, Meredith. “A cultural clue to why East Asians are kept from US C-suites.” MIT Sloan, May 3, 2021. Accessed July 3, 2024. https://mitsloan.mit.edu/ideas-made-to-matter/a-cultural-clue-to-why-east-asians-are-kept-us-c-suites. ↵
- Aguilera, Alex. “Business Etiquette in Mexico: Cultural Insights for Success.” Prince Manufacturing, April 15, 2024. https://princemanufacturing.com/business-etiquette-in-mexico-cultural-insights-for-success/. ↵
- Nordick, Amanda. “Consider It Culture: The Dynamics of Risk-Aversion and Risk-Taking.” North Dakota Trade Office, March 4, 2024. https://ndto.com/consider-it-culture-the-dynamics-of-risk-aversion-and-risk-taking/. ↵