| PAY LAVISHLY Higher-than-average salaries—and tying bonuses and raises to the market, not a pool—can make stars less likely to bolt. Money is no object in hiring. |
| PROVIDE COMPENSATION CHOICE Employees are more likely to excel if they can pick how much of their compensation they get in stock rather than cash. |
| FOSTER TALENT HUNTERS Encouraging everyone to hire the three people they've loved working with most during their careers creates an intense, fun workplace. |
| LET THEM GO Don't give B performers a middling raise. Give them a decent chunk of cash and show them the door. And don’t surprise them. The laid-off leave with their dignity. |
| LIMIT RULES They reduce error. But they also stymie innovation. At Netflix, employees are responsible for their choices, even in how much vacation to take |
How Netflix nets and keeps talent
Reed Hastings keeps the troops motivated with hefty compensation and luxe perks, including lots of time off
By Michelle Conlin