Netflix’s ‘Keeper Test’ shows how to be proactive with terminations

Over the past year, Netflix has provided the world with hours of binge-worthy content—from the likes of “Tiger King” to “Cobra Kai.” So, who would have guessed one of the largest subscription streaming services in the world is now also providing us with a very useful employment tactic? To stay competitive, the entertainment business has implemented a unique termination policy called “The Keeper Test.” The method encourages the company to be proactive and end the employment relationship “with employees whose managers wouldn’t fight like ‘Cobra Kai’ to keep them onboard.” Perhaps we could all learn a lesson from Netflix and avoid a myriad of workplace issues by discharging employees in a more take-charge manner.

Pros

The Keeper Test encourages managers to ask themselves whether they would go out of their way to keep an employee if tomorrow she gave notice she is moving to another company. If not, managers are encouraged to let the employee go. Netflix also recommends paying a severance and getting a release.

Netflix’s policy promotes transparency. Because there are no formal reviews, managers are encouraged to discuss performance openly and consistently. The approach allows employees to know where they stand compared to their peers so they can make any necessary adjustments. The employer doesn’t terminate employees after they’ve had a bad week. Instead, the person must show a consistent downward trend in performance and productivity.