A View of the Entire Netflix Stack
highscalability.com
highscalability.com
The headline of the slide you pulled that from is literally "Hard Work—Not Relevant."
Netflix doesn't care if you work 100 hours a week, they care how well you perform. If you can do an amazing job in 30 hours a week, they're one of the few places which would actually embrace you.
> I'm not sure how Netflix grades things... but in school B is "Above average".
So what? Why on Earth should Netflix be targeting "average" workers when they deliberately pay twice the average.
That's about as ridiculous as saying that Harvard should stop admitting A students because "B" is average.
Netflix has a deliberate strategy of keeping their engineering bar very high and paying accordingly. That doesn't mean they want you to sacrifice your life to the company.
Also, Netflix is in no way a startup.
And then you as the 30 hours employee are faced with not delivering 40 hours of work in 30 hours (which is possible if you are smarter, more involved, have more experience etc) but no you are expected to do 160 hours of work in 30 hours, because you don't compete with the other engineers but you compete with the expectation of your manager.
We need to accept that most people (colleagues, employees, customers, bosses) will always be disappointed by the results we achieved because they had unrealistic expectations to begin with. And we must excuse them because we do the same the other way around. That is why "40 hour week" is so relevant. Because then you can say after working hard for 40 hours, really doing all you can, maybe even achieving 30% more than your colleagues, that time is up and you need to take care of your children, wife, parents, friends and hobbies you may have.
Now let's assume for a moment that all I said was BS. Let's assume I'm super untalented and for most people it's actually possible to achieve in 30 hours enough to impress their leaders. Now you do it once. You do it twice. Maybe thrice. But at that point your leader will adjust in his head, maybe without realising, what 100% means for you. So the fourth time he doesn't think it's awesome anymore. The tenth time he thinks you are lazy. And now you have to achieve 50 hours of work in 30 hours. It still doesn't work out.
Could this argument not be made about the 40hr week?
Source: I was a senior engineer at Netflix.
OK, suppose it was $400K+. How do you describe your life (-work) balance? Also, may I ask you - was it your decision to leave Netflix? (and what you didn't like there?)
Another thing: as you can see one can have wrong expectations - e.g. on salary negotiations one can ask for 250-300K while as you say, the norm is much higher... So do Netflix propose alternative much higher salary compared to what you've asked?
When I started at Netflix, I asked for what I thought was a crazy salary, almost double what I was making previously. My boss said, "No, that's not high enough, lets give you 10K more". Every subsequent raise after that, my reaction was generally, "oh, that's more than I expected".
Netflix knows that there is no point in low balling you, because you will soon find out and then be upset/leave. They never want to lose someone over a matter of money. They only feel good about losing someone because they no longer enjoyed their work.
I mean, I've heard many times that while NET base salary e.g. in Microsoft or Adobe might be lower, when you add up all the benefits, bonuses, stocks - it becomes quite competitive to Netflix compensation. Also factor in the job security and family-friendliness and it becomes much more attractive... What do you think about this?
And yes, the other big companies total comp does come pretty close to Netflix. The difference is Netflix gives you cash to spend however you want, and those other companies force you to consume benefits that you may not want to get your "full comp".
But no, .NET jobs do not compare to a job at Netflix. Not even remotely close. Unless you are being paid 300k and get 100k in bonus/stock every year.
Usually you have to make a severe tradeoff between good pay and good culture. Not so with Netflix.
Efficiency pay (which Netflix heavily practices) does a great job of attracting people who are "motivated to do whatever."
It's well-accepted that when you say "our team is made of A-players" you're grading against the overall industry, not within your individual team. Grading within teams leads to perverse systems like stack ranking.
You've got to love these startups who basically say "if you're not giving us everything beyond what we expect... go screw yourself. I'm not sure how Netflix grades things... but in school B is "Above average".
Is Netflix looking to employee and develop people or are they looking to extract life from people?
"You are a cog in our machine. We do not care for you. We only care for your work. We will pay you insofar as you can execute on our vision. Further, you will be paid according to how hard it is to replace you. If you can be replaced by someone who executes significantly better, relative to your pay, we will tell you to leave."
Needless to say, stating that would make many of their employees, especially the weak-minded and insecure (those who defend their terrible culture), unhappy. I imagine even those in charge of the culture, speaking those words, would feel bad.
And they should feel bad. While such overwhelmingly negative words should almost never be spoken with authority, these decision makers must at least be able to answer the question "What are we really saying to our people?" truthfully. And if the answer is something along the lines of "you're a cog in the machine", then something has gone very wrong[1]
In my non-expert opinion, if a company truly wishes to be a "good" place to work, it should know the distance between their words and the truth, and then focus on minimizing that distance.
Spoken more simply: the more dishonest a company is to its employees, the worse the culture.
[1] Or right, if the company requires joylessness to turn a profit.
Isn't this the ideal of wage labor and the reality of 98% of jobs? I've never even suspected that my corporate employer cares about me as a person aside from how I produce, and have never suspected that I'm being paid by them for any other reason that it would cost them a lot more than they pay me to find somebody to replace me. I don't mean to say I haven't had great friendships and working relationships with management, but to the business, I'm a line item. When I notice a business making decisions contrary to the bottom line, I suspect corruption, not corporate affection.
They're a cog in my machine, too. I can only depend on that cog if it behaves rationally.
Looking back, I see I made my comment in the context of Silicon Valley behemoths and startups: companies that can both pretend to, and potentially change some fundamental way of doing things.
I think the difference in my mind between "creative" companies and normal ones is the "potential", achievements outside of a strictly defined expectations of contract, for both the business and the employee. Maybe a great insight, a new tool... anything that greatly benefits both the business and the employee, especially if the employee uses the product(s) and believes in the mission.
When you take away that potential (by saying employees are just cogs in a machine), you might take with it the creative spark that these hopeful companies ostensibly rely on. In my mind, that "potential" is the real joy of a job, which is my reason for the (slightly snarky) comment that "cog in the machine" is only acceptable "if the company requires joylessness to turn a profit". If I could, I would edit that post to be more clear/to take into account businesses which do not require any specialness.
At least for my central point, "the more dishonest, the worst the culture"... I believe that stands, especially in circumstances where a person is (somehow) manufacturing toilet paper and their supervisor is telling them they are (somehow) on their way to curing cancer.
That I'm creative (amongst other things) is why they pay me well. My successful experiments have a record of adding value well above my pay even if aggregated with my many unsuccessful experiments, although I try my best not to keep it that way for long. I'm not sure I've had any technical job with completely "strictly defined expectations of contract", I think that's a red herring. It sounds nice that the most creative and innovative projects/companies give less of a shit about the bottom line; I personally think that the bottom line is the fuel for creativity (didn't have much money when I was younger.) Anybody can sell your product with unlimited money to spill, but doing it with the best profit margin possible is creativity.
I like to think I'm a special snowflake...
These same people get profoundly uncomfortable if you respond to their platitudes with reality. They prefer to keep up this illusion of cooperation, because it makes them feel better.
In a way, the structure of our corporations both reflects and influences our society. A recent study has shown that the US is now more of an oligarchy than a representative democracy. Would we be happier and better off if "working for" was replaced by "working with"?
[1]: https://infinite.ai
Worth noting, but the 1000x figure that gets bandied about so often when referring to CEO pay is typically limited only to the Fortune 50 or so, and is in no way the mean pay for the top guy. S&P 500 companies lower the average to less than 400x worker pay, and most businesses have a much smaller gap than that, and across all companies, average CEO pay is something like $157k.
But also, more importantly, people outside the C-level rarely get a say in how the company gets run.
To my ear, there are compelling arguments both ways. Assuming a large company, employees 1-x should probably enjoy some of that fuck you money, but clearly, at some point there's a falloff. If my company sold tomorrow, I would not have in any way been involved in its sale. Same with an IPO. Our company has been around for years, sells expensive software, has millions in revenue, and I honestly couldn't tell you whether or not we've turned a profit yet. Assuming we have, it was probably done only last year, which meant that somebody was footing the bills of a multi million dollar company for a decade or so, and that person wasn't me. If somebody was spending millions on an idea that took a decade to pay off, then absolutely they deserve more money in a liquidity event than I do, and I'd be a fool to begrudge them that.
That said, not all companies are created equally, and many get to market / revenue / profitability at different timetables with different employee counts, so YMMV. That said, the notion of 'fair' is so abstract in this scenario then I think it's safe to assume that it is universally convoluted. Hard to pin down exactly what is or isn't fair without internal knowledge I don't have.
You might prefer a company filled with B-players doing B-work for B-pay, but don't hold it against Netflix that they're honest about what they expect.
"Why couldn't these folks go above and beyond like these other teams? It must be that they are inherently not good enough. Fire them and get a new team in."
I would even go so far to say that it's the CEO's and senior management, not the employees, who push this myth the most. In somehow all formulations I've seen, the persons's boss, who is amazing (regardless of context), and her or his bosses who are also amazing, are the judges of all performers in the company. Because the system is perfect or filled with perfect people (read: the top part is), any point of failure must be the employee, by process of elimination.
Further reading: https://en.wikipedia.org/wiki/Vitality_curve#Criticisms https://en.wikipedia.org/wiki/Jack_Welch (the
Thanks!
I'd argue that a senior engineer should be highly effective while still developing in her role. Also, expectations for different "levels" of engineer vary. Typically an "exceeds expectations" performance review for "Senior SDE" would be neutral for e.g. a "Staff SDE."
[1] curl 'https://ats-api.netflix.com/postings' | jq '.postings[]|select(.organization[] | contains("Engineering"))|.text' | grep -v Senior
- B was chosen arbitrarily to drive the point home and could well mean a D on a school grade scale.
- They don't want to be too hard on fired employees or hurt their future employability (e.g. even "above average" people get fired over there).
I don't know anyone who works at Netflix and I could very well be wrong. Their "performance > effort" policy does however resonate with me.
Also, is Netflix still a startup?
Actual dollars? Sr Engineer base pay at $175k+. Mid level at 135k. There are plenty of formerly middle class engineers making over $300k a year including equity. People often discount startup equity while overlooking the very lucrative large tech company equity. (Fb, goog, etc). My source for this is both friends and hiring in this market.
To be sure not every eng in sfba is paid this amount. But they probably could be if they were willing to optimize for comp.
I'm not sure how that makes sense. Netflix can't expect employees to surpass their expectations, by definition. I don't see the problem if they're clear about their expectations and send people on their way who either can't or don't wish to fulfill them. I don't know if I have the ability to fulfill their expectations, but I know I have no desire to try and thus no desire to work for them, but I'm fine with other people having different preferences.
"We look for a SOLID B- out of everyone here."
I know a handful of people who work for Netflix, and they all love it, although some have commented it's a hire slow / fire fast environment, but once you're out of that initial trial period, it's a great place to work.
You can have the best of the best, you just have to pay for it. Netflix does.
are?
Although, I see there is at least one person out there who has a concept of a "B-level manager" http://smallbusiness.chron.com/blevel-manager-35848.html so I am less sure about my reading of my grandparent comment.
I can't see this requirement on the individual actually doing anything for the team.
I'll give you my two cents on the matter. Netflix spins a great narrative and ideal -- the rose-colored "meritocratic" dream of Silicon Valley.
I'd suspect the reality of working there is a lot more mundane than the beautiful narrative that they (and by extension, the author of the post) are trying to sell you.
There are probably a wide array of experiences that current employees have, ranging from pure joy to misery, which are contingent upon team, co-workers, management, compensation, etc.
An interesting read nonetheless.
It's two hours long but the first hour is sufficient to get an overview of their open source projects.
Most of the cloud services are JVM-based (as is much of the NetflixOSS ecosystem [1]), and then the Node services connect to the JVM-based services via Prana. [2]
[1]: http://netflix.github.io/
[2]: http://ispyker.blogspot.com/2015/10/towards-being-better-abo...
Interesting to note that Netflix must see Gibbon as a competitive advantage, I've been told its not likely to see an open source release.
Why didn't you just interview someone then? There are plenty of folks there who would happily grant you an interview. If I still worked there I would have.
https://www.youtube.com/watch?v=-mL3zT1iIKw
Interesting to me that they use Atlassian Confluence for team stuff. Thinking of testing it out as well...
- No "regularly well performing" employees are kept. You're either promoted or fired. Ensure workforce moves.
- Doing the shitty necessary work such as fixing tech-debt just gets you fired. But I bet people do it anyway, else Netflix would be in troubles. It's just that they get fired after that. Not really nice.
It also means you've to be only doing stuff that has direct visible impact, and refuse any work that does not/place yourself visually above others.
Not saying this is a bad strategy to get stuff to work, not sure if very ethical though.
That's all I noticed was actually interesting ;-)
The idea behind mentioning the Netflix prize is to show the openness and willingness to get a lift on their existing recommendation algorithm. There was a 10+% lift in accuracy. Their ability to open up the data and implement really gives them a competitive edge IMHO. It's a shame there seems to be some regulatory reasons they don't do it any more.
Also Quora answer: https://www.quora.com/Why-does-Netflix-use-Amazon-EC2
Too many companies roll their own solutions when they could take advantage of economies of scale like this and let another company dominate the problem.
Obviously there are privacy reasons to own your own data but I don't think they outweigh the performance and efficiency implications.
Too many companies build their business completely reliant on a single service provider that can/will change focus, increase costs, terminate/change service offerings, or have unreliable service availability.
AWS is a tool, not a bullet made of silver.
If you mean that AWS prices are too high, I think you're thinking in terms of retail prices. If you have enough volume, AWS will negotiate a volume discount.
(http://techblog.netflix.com/2012/07/chaos-monkey-released-in...)
"Whole stack could be handled by one guy" - comments like like this and similar others ("I could build Twitter in a weekend", etc.) strike me as unproductive.
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