Why Most HR Rules Are Holding You Back (And What Netflix Did Instead)

Think about the last time you had to fill out a vacation request form or get a manager’s signature for a $20 expense. Did it make you feel trusted and empowered—or like a cog in a machine? For decades, HR has been about control: tracking, approving, and policing every move. But what if the best way to build a high-performing workplace is to do the opposite?



Patty McCord’s time at Netflix shattered the old HR playbook. The company eliminated its vacation policy—no more counting days or filing forms. Employees simply took the time they needed, coordinating with their teams. The result? People took about as much time off as before, but felt far more respected and trusted. The entire expense policy was replaced with five words: 'Act in Netflix’s best interest.' No more endless receipts or approvals. Instead, employees acted as stewards of the company’s resources.

What happened next surprised even the skeptics. There was no chaos, no huge abuse of the system. In fact, most people acted more responsibly, not less. Trust, it turns out, is a self-fulfilling prophecy.

Netflix also ditched annual performance reviews and rigid job descriptions. Instead, managers gave regular, honest feedback, and teams evolved as the business changed. This agility allowed Netflix to move faster, innovate more, and attract top talent.



So why do most companies cling to outdated rules? Fear—of lawsuits, of lost control, of what might happen if people aren’t watched closely. But the evidence is clear: when you treat people like adults, they act like adults.

If you’re ready to break free from bureaucracy, start small. Eliminate one unnecessary policy. Replace a rule with a simple principle. Encourage managers to focus on outcomes, not process. The path to a more powerful culture begins with trust.

Stop managing by rules. Start managing by results. Your team—and your bottom line—will thank you.