Key takeaways: Netflix does not conduct traditional formal performance reviews. Instead, the company relies on continuous, candid feedback, the keeper test for retention decisions, and separate promotion and compensation conversations. An annual 360 process serves as a feedback‑focused safety net, and Netflix emphasizes two‑way evaluation between managers and team members.
Netflix Drops Formal Performance Reviews — CTO Explains Continuous Feedback, Keeper Test and Annual 360 Check‑In
Key takeaways: Netflix does not conduct traditional formal performance reviews. Instead, the company relies on continuous, candid feedback, the keeper test for retention decisions, and separate promotion and compensation conversations. An annual 360 process serves as a feedback‑focused safety net, and Netflix emphasizes two‑way evaluation between managers and team members.
07:11 AM, 11/14/2025Culture
Netflix CTO on performance reviews: a different approach
Netflix CTO Elizabeth Stone told The Pragmatic Engineer podcast that the company does not use traditional, formal performance reviews. Instead, Netflix emphasizes "continuous, timely, candid feedback" throughout the year so performance conversations become routine rather than a once‑a‑year event.
"We don't have formal performance reviews," Stone said. "The way we approach it at Netflix is first trying to get to something that looks like continuous, timely, candid feedback."
Feedback as a daily practice, not an annual verdict
Stone stressed that ongoing feedback does not have to be negative — when the culture is functioning well, candid conversations should feel familiar and comfortable every day. The goal is to surface issues early, give people opportunities to improve, and avoid surprises.
Keeper test, compensation and promotions
Netflix's well‑known "keeper test" plays a central role in talent decisions. Historically, the test asked managers to consider: "If a team member were leaving for a similar role at another company, would you try to keep them?" If the answer was no, the company often offered separation with generous severance. Netflix has recently softened the language and added a disclaimer to reduce alarm, while encouraging continuous manager‑employee communication.
Stone explained that keeper tests — together with separate promotion and compensation reviews — effectively replace traditional review cycles. Compensation discussions reference Netflix's "personal top of market" philosophy, and promotion conversations naturally include performance considerations.
Checks, balances and a two‑way test
To prevent misuse, Netflix has checks and balances for managers who run keeper tests. Stone also highlighted that the process is two‑way: team members evaluate their managers and ask themselves whether they want to stay and whether they are excited about their work. That reciprocal assessment gives employees another clear channel to request feedback.
Annual 360: a safety net
Although Netflix avoids formal annual reviews, it maintains an "annual 360 process" as a safety net. Stone described this period as a structured opportunity for managers and employees to set goals and exchange feedback — framed explicitly to help people improve rather than to judge them.
Context and industry trends
Netflix is among several companies moving away from conventional, once‑a‑year performance reviews. For example, in 2023 Jack Dorsey — co‑founder of Twitter and then‑leader of Block — said his company would move toward ongoing evaluations to enable faster staffing decisions. Small and midsize businesses have also increasingly embraced continuous feedback models.
Ultimately, Stone said the ideal is for feedback and keeper conversations to occur as part of the normal course of business rather than as dramatic, infrequent events.
Read the original reporting on Business Insider.