Say “Goodbye” to Netflix

Netflix has announced a new policy of unlimited maternity and paternity leave:

Starting Now at Netflix: Unlimited Maternity and Paternity Leave

At Netflix, we work hard to foster a “freedom and responsibility” culture that gives our employees context about our business and the freedom to make their own decisions along with the accompanying responsibility. With this in mind, today we’re introducing an unlimited leave policy for new moms and dads that allows them to take off as much time as they want during the first year after a child’s birth or adoption.  (emphasis added)
We want employees to have the flexibility and confidence to balance the needs of their growing families without worrying about work or finances. Parents can return part-time, full-time, or return and then go back out as needed. We’ll just keep paying them normally, eliminating the headache of switching to state or disability pay. Each employee gets to figure out what’s best for them and their family, and then works with their managers for coverage during their absences.  (emphasis added)
Netflix’s continued success hinges on us competing for and keeping the most talented individuals in their field. Experience shows people perform better at work when they’re not worrying about home. This new policy, combined with our unlimited time off, allows employees to be supported during the changes in their lives and return to work more focused and dedicated.
–Tawni Cranz (Tawni Cranz is Netflix’s Chief Talent Officer)

Only an HR person could come up with a policy that is so senseless.  So now new mothers and/or fathers can take a year off from work…and STILL GET PAID.  And nice touch adding adoption there.  Because we wouldn’t want to discriminate against those who didn’t actually experience the discomfort of pregnancy.

This is basic economic theory.  If you remove the incentive to work (either the positive incentive of earning money or, in this case, the negative incentive of starving to death), no one will work. Honestly, why would someone come back to work when they’re getting paid to not work?  As a result of this ‘progressive’ new policy, within 9 months or so Netflix won’t have anyone left who is actually ‘working’.  Including Ms. Tawni Cranz.

It was fun while it lasted, Netflix.  You will be mis…well, hello HuluPlus!

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Categories: Econ 101, Economic Illiteracy, Oops, Opportunity Cost, Stupid People

Tags: , ,

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