As a disruptor to the media industry, Netflix has not only revolutionised the world of broadcasting and consuming top media content, but it’s changed employment practices to become one of the most liberating employers. Here, we take a look at the range of benefits that Netflix employees have.
What are the perks of working for Netflix?
Netflix has become a major player within the media industry. It has over 200 million subscribers across the globe and a content budget of $17 billion, larger than most of big US studios. Therefore, Netflix is seen as one of the best companies to work for thanks to its reputation and having a name like that on your CV can transform your career. Not only is the brand one of the most respected in the industry, employees receive some of the best perks in the industry.
Netflix is known to pay market-leading salaries for the majority of employees. As their salary is already at the very top of the market, they don’t receive annual pay rises unless the employee can demonstrate another business is willing to pay above the Netflix rate. If they do, it’s up to the manager to decide whether to match (or beat) the offer.
Salary or Shares?
A rare perk for Netflix employees is the option to be paid in Netflix stock options and it’s up to employees to decide the salary split. They can take their salary as cash (like most people), all in stock options, or any combination of the two. It provides a way for employees to invest in Netflix and profit even more from the company’s performance. It works as follows:
A stock option is like a coupon that allows you to purchase a Netflix share at a predetermined price. Netflix employees are granted their options on the first trading day of the month and those options have a 10-year expiry. They can redeem the option and buy the shares at the predetermined price at any point in the 10 years.
For example, if a Netflix employee received 1 stock option in July 2011, the predetermined price would have been around $40. If they held it and redeemed it 10 years later (July 2021), they’d need to pay $40 to acquire the share. However, they’ll hold 1 share in Netflix which was valued at $543 (13th July 2021). That is a significant profit.
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Netflix will contribute up to 7% of an employee’s salary to their pension each month. While this figure is lower than traditional broadcasters, Netflix employees enjoy higher salaries than their broadcaster counterparts, so often pay a similar amount to their pension.
Unlimited Annual Leave
While most businesses operate with a strict number of days off for each employee, Netflix doesn’t impose a fixed limit. Their policy is to “take holiday” and allow employees to take paid time off whenever they need to. The policy is aimed at making sure all Netflix employees are fully engaged and productive while at work.
Of course, processes have to be followed to make sure entire teams aren’t off at any one time, however annual leave is mostly organised among teams to ensure there is adequate cover for anyone on annual leave.
Reports have suggested that while it’s clearly an attractive perk for businesses, employees can feel under even more pressure to take less annual leave.
Netflix offers basic health insurance (provided by AXA Insurance) for all UK employees. Some procedures are expected to be diagnosed and treated by the NHS. Netflix staffers also receive dental cover as standard. Both insurance policies are taxable benefits, so you will be expected to pay a small addition in tax.
Netflix will also extend the medical insurance and dental cover to include family or dependents if the employee chooses. Netflix will cover 50% of the premiums for the dependents and the employee is expected to pay for the remaining amount.
Interested to find out the benefits offered by other Pay TV companies? We’ve compiled benefit packages for both Sky and ITV: