The Keeper Test: Netflix’s Secret to Building a Dream Team

Netflix, a streaming giant renowned for its unconventional company policies, such as the absence of strict expense and holiday guidelines, has recently made headlines with its distinctive “Keeper Test.” This performance evaluation tool is part of a broader update to Netflix’s culture strategy, compelling managers to critically assess their team members in a new light. The Keeper Test poses critical questions to managers: “If X wanted to leave, would I fight to keep them?” or “Knowing everything I know today, would I hire X again?” If the answer is no, the company believes it’s “fairer to everyone to part ways quickly.”

In a recent memo titled “The Best Work of Our Lives,” Netflix addressed the Keeper Test’s daunting reputation, emphasising the importance of regular communication between managers and their teams about performance and expectations. This ongoing dialogue is designed to prevent surprises and ensure that all team members are aligned with the company’s goals. Moreover, the memo reassures the 13,000 employees at Netflix that while the Keeper Test is rigorous, it does not focus solely on recent mistakes or unsuccessful projects. Instead, managers are encouraged to consider an employee’s entire record, supporting team members through temporary challenges and focusing on their potential for future contributions.

So, how does the Keeper Test work?

Define “Keeper”: Clearly articulate the desired qualities and behaviours of an employee who is considered a “keeper.” This might include factors like alignment with company values, innovation, problem-solving skills, and team collaboration.

Regular Evaluation: Conduct ongoing evaluations throughout the year to assess if an employee meets the “keeper” criteria. This can involve informal discussions, observations, and feedback from peers and managers.

Honest Feedback: Provide honest and constructive feedback, focusing on both strengths and areas for improvement. The goal is to help employees grow and develop.

Difficult Decisions: Be prepared to make difficult decisions if an employee consistently falls short of the “keeper” standards. This might involve termination, reassignment, or providing additional support and training.

The positives of the Keeper Test

Focus on Potential: It shifts the focus from past performance to future potential, encouraging employees to develop and grow.

Alignment with Company Values: By defining “keeper” qualities based on company values, it ensures that employees are contributing to the overall mission and culture.

Improved Employee Engagement: Honest feedback and a focus on development can lead to increased employee engagement and satisfaction.

Strategic Decision-Making: By evaluating employees based on their alignment with long-term goals, the Keeper Test can help businesses make more strategic decisions about their workforce.

The negatives of the Keeper Test

Subjectivity: The definition of a “keeper” can be subjective and may vary between individuals or teams.

Potential for Bias: If not implemented carefully, the Keeper Test could lead to unconscious biases or favouritism.

Difficulty in Quantifying Results: It can be challenging to measure the direct impact of the Keeper Test on business outcomes.

What can SMEs learn from the Keeper Test?

Small and medium-sized enterprises (SMEs) can draw valuable lessons from Netflix’s Keeper Test to enhance their own performance evaluation strategies. Here’s how SMEs can adapt and apply the Keeper Test effectively:

Define Your “Keeper”: Start by clearly defining what a “keeper” means within the context of your business. This involves identifying the specific qualities and behaviours that are crucial for success in your company, such as adaptability, technical skills, or customer focus.

Create a Culture of Feedback: Cultivate an environment where open and honest feedback is the norm. Encourage managers and peers to provide regular, constructive feedback that empowers employees to excel and address areas where they can improve.

Invest in Employee Development: Commit to the growth of your employees by providing ongoing opportunities for professional development. This could include training programs, workshops, or access to courses that help employees advance their skills and careers.

Align with Business Goals: Ensure that the criteria used to evaluate whether someone is a “keeper” are directly aligned with your business’s strategic objectives. This alignment helps to ensure that everyone is working towards the same goals and that employee contributions are clearly linked to company success.

Implementing these strategies can leverage the Keeper Test to foster a more engaged, productive, and strategically aligned workforce. This approach not only enhances individual performance but also supports the overall growth and success of the business, creating a dynamic and forward-thinking workplace.