Essay On Netflix Total Rewards Strategy

Recommendation of Changes: Total Rewards Strategy Netflix has taken a unique approach to their total rewards strategy and they have chosen to pay their employees well above what their competitors offer. In return, they expect high performers and those who do not make the cut, are sent out the door with a nice severance package. It is a bit harsh but according to Hastings, employees who produce B-level work, even if they put forth A-level effort, should be let go (Fenzi, 2013). Hastings describes the Netflix hiring philosophy with a metaphor about professional sports teams: Pro teams hire, develop and cut smartly so that they can have stars in every position (Fenzi, 2013). However, the hiring philosophy is not perfect because the turnover rate of the business world compared to a sports team is much higher. Not to mention, if a sports member (even if a high performer) is struggling, management will take the time to evaluate the issue and try to help them. At Netflix, they quickly avoid any incentives to stay (Bares, 2011). What this method lacks are room for errors and skill building opportunities. If an employee does not make the cut, what methods were put into place to ensure

To ensure effective communication of the organizational change, the following communication efforts will be implemented:

1. Create a brand. An effective total rewards brand tells a compelling story of what is expected of employees and what they can expect in return when it comes to maximizing their total rewards (Kwon & Hein, 2013). Most importantly, from a talent perspective, an effective total rewards brand inspires action by making it clear to employees what it takes to meet both business and personal needs (Kwon & Hein,