6 Things Small Businesses Can Learn About Culture from Netflix

Netflix’s culture has been widely studied, including by Harvard Business School, which notes its focus on “freedom with responsibility”—a model built on autonomy, accountability, and high performance standards.

While not every organization can operate exactly like Netflix, there are valuable lessons small businesses can apply to build stronger teams, improve performance, and retain employees.

Culture is not about perks—it is about how work gets done, how people are treated, and what behaviors are encouraged or discouraged every day.

If you are looking to strengthen your workplace culture, here are six practical takeaways small businesses can learn from Netflix.

Why Culture Matters

Workplace culture directly impacts employee engagement, retention, and performance.

When employees understand expectations, feel trusted, and are aligned with company values, they are more likely to stay engaged and contribute at a higher level.

If you want to better understand how culture connects to engagement, read What Employee Engagement Really Means.

1. Focus on Results, Not Activity

One of Netflix’s core principles is prioritizing outcomes over hours worked.

Rather than measuring productivity by time spent, they focus on results. This approach encourages accountability and gives employees more autonomy in how they complete their work.

Small businesses can apply this by clearly defining goals and allowing employees flexibility in how they achieve them.

2. Hire and Keep High Performers

Netflix emphasizes building teams of high-performing individuals.

For small businesses, this means being intentional about hiring and ensuring employees are aligned with both the role and the culture.

It also means addressing underperformance when it occurs. For guidance on this, read Helping Underperforming Employees Get Back on Track.

3. Be Honest and Transparent

Netflix is known for its emphasis on candid feedback and transparency.

Employees are encouraged to communicate openly and share feedback constructively. This builds trust and helps teams improve more quickly.

Transparency also strengthens leadership credibility. For more on building trust, read 6 Leadership Habits That Build Trust in the Workplace.

4. Give Employees Freedom with Accountability

Freedom and responsibility go hand in hand.

Netflix gives employees significant autonomy, but also expects them to take ownership of their work and results.

Small businesses can apply this by empowering employees while maintaining clear expectations and accountability.

This balance is essential for building strong teams. For more on team development, read 5 Simple Steps Managers Can Take to Build a Great Team.

5. Reinforce Culture Through Leadership

Culture is shaped by leadership behavior.

Leaders at Netflix actively model the values they expect from employees. This consistency reinforces expectations and builds trust across the organization.

Small businesses should focus on aligning leadership behavior with cultural goals. For more insight, read Successful Culture Change Starts with Leadership.

6. Continuously Evaluate and Improve

Culture is not static. It evolves over time.

Netflix regularly evaluates its culture and makes adjustments as needed. Small businesses can take a similar approach by gathering employee feedback, reviewing processes, and making improvements where necessary.

Listening to employees and acting on feedback can help prevent disengagement and turnover. For more on retention, read Why Employees Quit and How to Keep Your Best People.

How HR Systems Support Culture

While culture is driven by leadership, strong HR systems help reinforce it.

Clear policies, consistent processes, and accessible resources create a more predictable and supportive work environment.

Employers can strengthen these areas using tools like the Document Center and the Human Resources Library.

Final Thoughts

Small businesses do not need to replicate Netflix’s culture to benefit from its principles.

By focusing on results, hiring intentionally, communicating openly, empowering employees, aligning leadership, and continuously improving, organizations can build a culture that supports both employees and business success.

Strong culture is a long-term investment—but it is one of the most impactful investments a business can make.

Want to identify ways to strengthen your culture and support your employees? Book a free benefits audit.