{"id":25477,"date":"2021-01-21T10:30:00","date_gmt":"2021-01-21T14:30:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=25477"},"modified":"2021-01-30T19:02:53","modified_gmt":"2021-01-30T23:02:53","slug":"keeper-test","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/keeper-test\/","title":{"rendered":"The Keeper Test: How Netflix Decides to Fire Someone"},"content":{"rendered":"\n<p>What is the Netflix Keeper Test? How can it provide a measure for deciding what employees should be retained and who should be let go?<\/p>\n\n\n\n<p>The Keeper Test is a measure used by managers at Netflix to regularly reassess every employee on their teams. If a person said they were leaving for another job, you ask yourself if you would fight to keep them. If you wouldn&#8217;t, you should consider firing them.<\/p>\n\n\n\n<p>Read on for more about the Netflix Keeper Test and how it works.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Fire Any Employee You Wouldn\u2019t Fight to Keep&nbsp;<\/strong><\/h2>\n\n\n\n<p>If your company is growing, that success is likely built in large part on the high <a href=\"https:\/\/www.shortform.com\/blog\/talent-density\/\">talent density<\/a> you\u2019ve already established. Thus, it\u2019s critical to keep that talent density high to continue your success. Achieving and maintaining high talent density isn\u2019t just about hiring well\u2014it\u2019s also about firing good employees to make room for great ones. Netflix keeps talent density high by encouraging managers to use the \u201cKeeper Test\u201d to regularly reassess every employee on their teams. When a manager does the Keeper Test, she asks herself whether she would fight to keep a particular employee if that employee told her that he was leaving for another job. <strong>If the manager wouldn\u2019t fight to keep the employee on the team, then the manager should either talk to the employee about how he can improve or offer him a generous severance package.<\/strong><\/p>\n\n\n\n<p>Hastings believes that each employee should remain in their position only as long as the employee is the best person for the job and the job is the best fit for the employee. Someone may be the perfect match for a job when she starts, but over time that can change:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The employee\u2019s skills may not grow as much as they need to, or they may grow in a different direction.&nbsp;<\/li><li>The company\u2019s needs may change, and the employee may not be able to fill them.<\/li><\/ul>\n\n\n\n<p>Despite the benefits of keeping the talent density high, it can be difficult for managers to fire employees that they otherwise like and respect, and who may be doing a perfectly adequate job. However, <strong>managers must understand that <\/strong><strong><em>everyone<\/em><\/strong><strong> at the company benefits when everyone at the company is the best possible person for their position.<\/strong> Along with the Keeper Test, managers should ask themselves whether the company as a whole would be better off if a particular employee was fired.<\/p>\n\n\n\n<p>Many companies try to avoid turnover because it\u2019s expensive to <a href=\"https:\/\/www.shortform.com\/blog\/how-to-hire-employees-2\/\">hire and train<\/a> new people\u2014but that makes it more likely that people will stay in positions because of convenience rather than performance. By contrast, Hastings\u2019s priority is that each position is filled by the best possible person. And his approach seems to be paying off: Despite the seemingly ruthless policy, Netflix has a lower voluntary turnover rate (people quitting their jobs) than the average for American companies, and an involuntary turnover rate (people getting fired) that\u2019s two percentage points above average. The total turnover rate\u2014combining voluntary and involuntary\u2014is 11 to 12 percent, which is:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Below the 18 percent average for all American companies<\/li><li>Slightly below the 13 percent average for tech companies<\/li><li>On par with the 11 percent average for media and entertainment companies&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Prevent Internal Competition and Fear of Firing<\/strong><\/h3>\n\n\n\n<p>Many companies try to achieve a high talent density, but they use problematic tactics. One common strategy is stack ranking (also called a \u201cvitality curve\u201d and \u201crank-and-yank\u201d), in which managers regularly rank their employees from top to bottom, and the lowest-ranked employees are fired. Stack ranking judges each employee\u2019s performance <em>relative to her coworkers\u2019 performance<\/em>, which creates internal competition among employees\u2014if one person does well, her teammates\u2019 rankings drop by comparison. As a result, collaboration suffers and employees don\u2019t get to enjoy the benefits of working in an environment full of high performers.&nbsp;<\/p>\n\n\n\n<p>While Netflix\u2019s Keeper Test also calls for managers to regularly reassess their employees\u2019 performances, it doesn\u2019t incorporate any ranking systems or firing quotas. Since Netflix doesn\u2019t have a fixed number of positions it needs to fill, one employee\u2019s success doesn\u2019t come at the price of another employee\u2019s loss. In fact, <strong>when every employee is successful, the team accomplishes more, which allows the company to grow and create more positions for more high-performing talent. <\/strong>This mentality allows collaboration to flourish as employees focus on competing with other companies instead of with each other.&nbsp;<\/p>\n\n\n\n<p>Still, Netflix\u2019s strict performance standards can cause employees to feel that the possibility of being fired is an ever-present threat. While this fear can <a href=\"https:\/\/www.shortform.com\/blog\/motivate-employees-as-a-manager\/\">motivate employees<\/a> to work tirelessly in order to keep their jobs, Hastings recognizes that people do their best work when they\u2019re inspired by passion, not fear. In order to minimize anxiety among employees, Netflix uses two strategies.&nbsp;<\/p>\n\n\n\n<p>First, the company encourages employees to use the Keeper Test Prompt when they\u2019re feeling unsure about their standing. In a one-on-one meeting, <strong>a nervous employee should ask her manager whether she would pass the manager\u2019s Keeper Test<\/strong>\u2014in other words, how hard would the manager fight to keep her if she told the manager she was leaving? The manager can respond in one of three ways:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>\u201cI would fight hard to keep you.\u201d If this is the answer, the employee can rest assured that her job is safe.&nbsp;<\/li><li>\u201cI would fight harder if you improved in these ways.\u201d This answer can be difficult to receive, but the employee still benefits because she has the opportunity to use the manager\u2019s specific feedback to improve her performance.&nbsp;<\/li><li>\u201cI would not fight hard.\u201d The possibility of hearing this answer is scary enough to deter some employees from asking the question in the first place. However, if this is the case, it gives the employee and manager a chance to talk about whether the employee is still the best fit for the job (and vice versa), and it prevents the employee from being blindsided if she is subsequently let go.&nbsp;<\/li><\/ol>\n\n\n\n<p>Second, <strong>managers hold a post-exit Q and A session with employees after someone is fired.<\/strong> Whenever an employee is fired, the people on that person\u2019s team are left wondering what happened, whether or not their former coworker saw it coming, and if they could be next. In these post-exit Q and A sessions, managers can be open about what happened, which alleviates employees\u2019 fears.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Exercise: Employee\u2014Would You Work Somewhere With a \u201cKeeper Test\u201d?<\/strong><\/h2>\n\n\n\n<p>Consider the pros and cons of working for a company that uses the \u201cKeeper Test,\u201d which managers use to determine if they should fire an employee based on whether or not they would fight to keep the employee at the company.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If you were applying for a <a href=\"https:\/\/www.shortform.com\/blog\/your-dream-job\/\">dream job<\/a> at Netflix and found out about the practice of firing and giving generous severance packages to adequate employees, how would that impact your interest in the job?<\/li><li>If you would be hesitant to join the company because of this practice, what would be your main concern?&nbsp;<\/li><li>What\u2014if anything\u2014appeals to you about working in an environment with this practice? (For example, maybe you value the opportunity to work with all high-performing colleagues.)<\/li><li>At your current job, how does your level of <a href=\"https:\/\/www.shortform.com\/blog\/career-security\/\">job security<\/a> impact your performance?<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the Netflix Keeper Test? How can it provide a measure for deciding what employees should be retained and who should be let go? The Keeper Test is a measure used by managers at Netflix to regularly reassess every employee on their teams. If a person said they were leaving for another job, you ask yourself if you would fight to keep them. If you wouldn&#8217;t, you should consider firing them. Read on for more about the Netflix Keeper Test and how it works.<\/p>\n","protected":false},"author":6,"featured_media":8644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,14,30],"tags":[200],"class_list":["post-25477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career","category-management","category-work","tag-no-rules-rules","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Keeper Test: How Netflix Decides to Fire Someone - Shortform Books<\/title>\n<meta name=\"description\" content=\"What is the Netflix Keeper Test? A manager can, and maybe should, fire anyone they wouldn&#039;t fight to keep. 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