One of the things that make Netflix's work culture so compelling is their approach to employee compensation. Netflix takes pride in distinguishing themselves from other companies, writing that "Unlike many companies, we practice: adequate performance gets a generous severance package." Aka being just good enough isn't good enough. They then go on to discuss their stance in more detail, stating that, "Paying top of market is core to high-performance culture." The implications of this policy are two-fold in that:
- They don't accept anything other than top performers and they're willing to pay for it
- It creates a thriving work culture. Providing employees with powerful incentives helps drive and attract top talent. Their commitment to always pay top of market also means a significantly higher employee retention rate, since employees will always feel like they're getting the best deal out there.
It's a two-way labor of love: a culture of reciprocity.
An employee's end of the bargain is their performance and effort. Yours is their work environment and compensation. If you don't deliver, they won't either. If you commit to giving as much as you can, your people will reflect that back to you. Harry West sums it up nicely in his post on "10 tips for retaining top talent":
If your business does a good job retaining its employees, you'll eventually develop employer advocates who become positive internal influences and community champions for your organization.
Your people are your army on the battlefield of business. Don't expect to win many battles armed with spears (a mediocre workforce) while your competition is arming themselves with machine guns (exceptional employees). If you can't see the value of that investment, then good luck trying to conquer the world with a few puny spears.
Galen Emanuele is an international speaker who teaches organizations how to create awesome workplace culture.
This article originally appeared on Shift Yes.