Netflix No Vacation Policy

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Permalink Reply by Robby Slaughter on November 19, 2009 at 8:39pm

Netflix is a fascinating company because it is more obsessed with results than rules.

Scott Booher of CIOpedia recently posted a thoughtful critique about the obsession with procedure at many companies. His surprising inspiration was an internal document leaked from Netflix:

Here’s what Booher has to say on the topic of company policies:

In this model [from Netflix], Process is to be tolerated, and whenever possible, replaced by great performers who know what they are doing and can figure out how to get things done, without arbitrary rules getting in the way (I do not personally know any Netflix employees, so others will need to comment on whether this view of Process is accurate across their organization).

Contrast this model with that found in most IT organizations of any size. Process is not only accepted, it is celebrated. There is a complex process for everything, from the method for getting approval to build a piece of software, to requisitioning a new server, to the detailed accounting for every activity performed during the work day. One might even go further with the observation that in many organizations, processes are stacked over time, one on top of another, with few processes ever being retired.

This phenomenon, unfortunately, is not exclusive to the information technology department. Usually, almost every area of work is governed by a dizzying number of official and unofficial policies, which ultimately stifle innovation and limit progress. At Slaughter Development, we have run across companies where it takes weeks for a new employee to be issued a computer and months to receive business cards. Purchases often require multiple signatures no matter how small the amount. These regulations may not be written down anywhere, but if employees feel as though they’re out of control than they effectively have no authority. Process can overwhelm a company until it reaches stagnation.

Although Booher’s comments are fascinating, the source material may be more relevant to most employees. Check out the Netflix Reference Guide on Freedom & Responsibility Culture (direct link):

To many employees at many companies, this document sounds unreal. It suggests, for example, that Netflix aims to increase employee freedom as it grows. Who ever heard of a boss that wants you to spend more of your time doing whatever you want? That sounds like a fantasy, not the reality of work.

Nicki, I know that recently you rejected a candidate for a an off-hand comment. I think that was probably the right choice for you and your organization, but there's tremendous power in focusing on results instead of rules. Personally, our vacation policy is similar to Netflix. Get your work done, take time off when you want to. If we need anything more formal, we must be failing elsewhere.

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Permalink Reply by Nicki Laycoax on November 19, 2009 at 9:00pm

Robby,

My issue with the candidate was exactly what you wrote in your post on Slaughter Development-He was boasting about not doing his job while he was at work... We don't work constantly, but we definitely don't boast that we aren't doing our jobs. It just looks bad. The two scenarios are very different. The candidate was a young one, and I feel that we did make the right decision because if there aren't good work habits established early on, there's the possibility that they won't exist. I could definitely be mistaken, but I'm going with my gut on this one.

As far as the Netflix vacation "policy", I think it is great. We all know when we need time off, and if we take the time off rather than getting bored or frustrated with our jobs, chances are that the entire team and organization will be happy and will thrive. ROWE.....

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Permalink Reply by Robby Slaughter on November 19, 2009 at 9:08pm

I think you made the right decision with the candidate.

But wouldn't it be great to not have to make such decisions? That's really the point of the Netflix vacation policy. Nobody should have to keep track of how many days you have off. Nobody should have to keep track of whether you are working or not. And if you boast about not working, sure---that might be a sign that you are lazy---but don't the results matter more than the discussion?

I think the two situations are pretty analogous. They are both about establishing well-intentioned rules to try and mold results. Sure, there are people who will abuse vacation policies and people who will fail to get work done. But those are the same kinds of people.

It's pretty hard to think about work without rules and judgment, but that's actually when we get the most done. The challenge is finding people that excel in that environment. Your rejection of the candidate based on perceived laziness is a fine way to get started. But eventually, organizations that want to emulate the success of Netflix will need to move away from judgments of character and restrictions on actions and toward evaluation of results.

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Permalink Reply by Nicki Laycoax on November 19, 2009 at 9:33pm

I would love to not have to make those types of decisions or judgments. Wouldn't it be great if everyone thought about what they do as you and I do?

I worked for the State for a little over a year. I was a part of the software testing team and we had quite a bit of freedom.... until it became pretty apparent that people we not doing their jobs. When folks don't care about anything other than getting a paycheck, they abuse the freedom given to them. It's sad, but very true. There have been several jobs that I've had that I've been so stunned at how people would do anything to not actually do their jobs. Fortunately, I have parents that instilled great work ethics in me at a young age, and I know the importance of doing my job and doing it with passion and excellence. I hated it when I was a kid, the amount of responsibility that I had, but I am very thankful for it now.

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Permalink Reply by asa blevins on November 20, 2009 at 2:37am

Just wanted to point out that its the "salaried employees" that have no limit on vacation days, not all employees. Which makes sense.

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Permalink Reply by Jen Burk on November 20, 2009 at 9:13am

I LOVE this idea! I agree that it works - studies show that loyalty from an employer to it's employees yields the same back. Why wouldn't it? Happy employees mean productive employees, and logical, mature adults know when they need a break, and will put that much more into their work upon return. And, the rest will weed them selves out or be weeded out, which makes for a much more positive overall outcome. And, it's much more honest than pretending you are working when you aren't, or calling in sick just because you need a break.

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