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Tech chiefs love to talk about the philosophies that underpin their companies. Instead of rigid HR rules, Silicon Valley has championed radical candor, total dedication and commitment. But that is no longer the case.
As the industry ages, signifiers of traditional hierarchy are creeping in. Netflix’s latest culture memo has a striking line noting that “not all opinions are equal.” It has already told employees that Netflix may not be the place for them if they disagree with the content. Three years ago, some walked out in protest over a Dave Chappelle comedy special that included jokes made at the expense of transgender women.
You can understand why employees may have felt comfortable voicing their opinions. In 2009, founder and then-CEO Reed Hastings put together the company’s first culture memo, a 125 page PowerPoint presentation He is now famous in tech circles and explains the qualities he wanted to see in the workforce. On page 15, he described courage as the ability to “question actions that are not consistent with our values.” Under honesty, he wrote, “You are known for your candor and straightforwardness.”
This has translated into a corporate culture known for its candor. Netflix employees participate in 360-degree evaluations. When your boss gives you feedback, you can immediately give it back. They have been encouraged to publicly acknowledge their mistakes in a practice known as “sunshining.” Sensitive souls will cringe, but the world’s largest streaming company has changed the way millions of people watch TV and movies. That lends credibility to its corporate culture.
Still, a lot can change in 15 years. It’s easier to ask employees to question your actions when your workforce is relatively small. The New York Times, which first reported on the new memo, notes that Netflix has more than 13,000 employees. In 2009, it had fewer than 1,900. Plus, it’s always been easier for people in charge to solicit honest feedback than to hear it.
Elon Musk, for example, preaches direct communication, but can sometimes seem touchy. In 2017, he sent out a memo telling Tesla employees that they should speak freely to whoever could help solve a problem. “You can talk to your manager’s manager without their permission, you can talk directly to a VP in another department, you can talk to me,” he wrote. But when a Twitter engineer contradicted Musk in public after the company was acquired, he was fired.
Similarly, Google, once a staunch proponent of bringing full identity to work, this year laid off more than 20 employees following a sit-in protest over the company’s contract with the Israeli government. Google would like to keep the political part of its employees’ full identity at home.
There is a rebalancing of power between tech companies and their employees. Over-hiring during the pandemic has led to job cuts, meaning workers feel less secure. Some bosses are also reconsidering the freedom they have traditionally offered their workforce.
Two decades ago, companies like Google were still the youngest in the industry. To attract talent who would otherwise seek lucrative and more stable careers elsewhere, they needed to show they were different. Hence the casual clothing, the incessant snacks, the flat management structures and the declaration that employees should express their opinions freely.
Now that the tech industry is an established and desirable industry, it doesn’t need to work as hard to get the best workers. It’s becoming a business industry like any other high-paying industry, and like any other high-paying industry, it would like its employees to take the money and keep their opinions to themselves.