Contrary to most companies, the vacation policy at Netflix is quite simple: “there is no policy or tracking.” Netflix CEO Reed Hastings referred to vacation limits and face-time requirements as “a relic of the industrial age.”
Several years ago, employees had argued that it wasn’t logical for the company to track vacation days since employees’ hours worked per day or per week were not being tracked.
Netflix executives agreed and did away with vacation policy after the legal issues were taken care of. In a presentation that was leaked to the media, Neflix realized that they “should focus on what people get done, not how many hours or days worked. Just as we don’t have a 9-5 day policy, we don’t need a vacation policy.”
Netflix employees are encouraged to take as much vacation time as they want as long as it doesn’t interfere with their work.
To executives who might worry about such a policy vacuum being taken advantage of by employees, Brian Carney, the author of Freedom, Inc., responds “In a large enough organization, there might be a couple of people who would take two or three months’ vacation–but if a vacation policy is the only thing holding them back from that, they’re probably ‘vacationing’ at their desks anyway.”
Brian Carney and Isaac Getz are the authors of a new book called Freedom, Inc., which is being released today! WorkplaceDemocracy.com spoke with them recently about their book and its connection to workplace democracy.
What is Freedom, Inc. about?
Freedom, Inc. is a book about the most important corporate movement of the last two decades, a movement that has been quietly transforming the fortunes of dozens of businesses and the lives of thousands of employees by using a source of benefits neglected by most—complete freedom and responsibility for employees to take actions they—not their bosses—decide are best.
Each of the unusual bosses and amazing leaders profiled in Freedom, Inc. have performed near-miracles in driving their companies to unheard-of levels of success, often from unlikely or disheartening beginnings. And each has something in common with the others—he believes that the key to business success is freeing up the initiative and genius of every, even the lowest-ranked employee in the firm, every day. How they set their employees free—and how their lessons can be applied to firms in every industry, of any size, anywhere in the world—is the story of this book.
After four years of research, thought and debate, we have identified three stages that each leader went through to build a radically free workplace—rejecting the command-and-control structure, enlisting employees in building a free workplace, and staying put in spite of setbacks; and in each successive stage this leader relied on one corresponding personal strength: values, creativity, and wisdom . Among the leaders of the companies we studied, these three strengths set them apart from other executives while binding them as a group.
Were most of the companies featured in Freedom, Inc. founded as democratic companies or did their management structures evolve from more hierarchical structures?
I’ll reply to all your questions considering that “democratic” means “freedom-based”–the term we use in the book to describe the companies we studied. We avoid “democratic” mainly because it focuses too much on the instruments (and none of our companies used, for example, formal voting for making decisions). Our companies, each with their own instruments, all focused rather on the end: freedom of action and initiative for every employee.
What inspired these companies to develop freedom-based workplaces?
Each company had what we call a liberating leader at its head, who initiated the changes. The leader was either frustrated with command & control companies and/or admirative of the freedom-based ones such as WL Gore & Associates.
How does democracy work at these companies?
Freedom of action is achieved when an environment satisfies universal human needs instead of hampering them. These needs are intrinsic equality, growth, and self-direction, according to the most advanced psychological research carried out by University of Rochester psychologists Edward Deci and Richard Ryan.
What have been some of the main challenges in cultivating democratic workplaces?
Workplaces struggle to evolve the often authoritarian managers’ practices into freedom nurturing practices. Some liberating leaders had to remove certain managers (albeit keeping their salary) from the positions of authority.
Why should companies consider decentralizing their workplace? What are the advantages of freedom-based or democratic companies?
Freedom of action is a tremendous advantage because in freedom-based companies, employees facing a sudden surge in competition, a downturn, a new government regulation, or an inadequate business process don’t simply wait for their higher ups or some new policies to tell them what to do. Instead, they take action that they—not their bosses—deem is best for the company and they do it right away—not when it’s too late. Add to that that frontline people always know better what’s going on and what needs to be done. So letting them take action is pure common sense.
What is the most important step that companies should take in order to become more democratic?
The most important step is for the liberating leader to stop telling people how to do their work and instead ask them how they want to do it.